Raypak to continue market penetration with high efficiency products

Founded in 1948, Raypak pioneered the adaptation of the copper finned tube heat exchanger technology to hydronic boilers. This revolutionary new concept for lightweight, very low water content, rapid recovery package boilers was in demand for high comfort radiant heating in luxury Hollywood homes. The original name, Package Boiler for Radiant Heating, was later changed to Raypak.

The design was soon extended to commercial domestic hot water (DHW) and pool heating, where the precise modulated response, reduced energy consumption and space saving were highly prized. Over the past 60 years, Raypak’s high recovery, high efficiency copper fin tube configurations have spawned an industry that holds a significant to commanding share in each of these three markets. Raypak remains a leader in each, with the largest total consumer and owner base.

Stan Young, marketing consultant for Raypak, shares his thoughts and observations with phc News:

PHC: Can you describe exciting Raypak news for 2011?

Young: In 2011, Raypak’s commercial division will continue to build on its 2010 market penetration, with an ever-expanding family of new high efficiency condensing products that now supplement our already wide array of boilers and water heaters. This includes the old reliable atmospherics, mid efficiency horizontal and vertical types and leading edge high efficiency products.

Today, all boiler/water heater product innovation efforts must be combined with ever more sophisticated control technology to optimize system performance, maintain system dependability and meet the challenge for even better seasonal building energy efficiencies in all climates. These are Raypak’s key 2011 product objectives. Widespread acceptance of recently introduced products in a very difficult 2009–2010 marketplace, combined with a gradually improving commercial housing market in 2011, leads us to great expectations for this year.

PHC: How do you see the long- and short-term economic forecast shaking out for the boiler market?

Young: Like all industries, the commercial boiler/DHW market fluctuates with the economy, both short and long term. New commercial construction tends to be a lagging indicator. The more steady opportunity is in replacements and existing system upgrades. We know residential housing remains anemic. Due to current economic conditions, private multi- family housing is recovering, albeit from a very steep drop. The government stimulus of 2009–2010 was a major factor in those years. It focused on investment in green projects in government buildings. We expect these programs to wane, if not disappear, in 2011. Consequently, it’s a mixed bag in the short run, but we believe that, due to the reawakening private sector, the recent upward trend in commercial construction will continue.

PHC: How can your company help the contractor conduct his business better?

Young: It is Raypak’s belief that recent technology advancements in the commercial boiler/DHW and overall building management systems have been so rapid that they have far outpaced the availability of truly qualified application, installation, startup and maintenance field technicians. A major factor in Raypak’s boiler and control design criteria has always been operational simplicity, reliability and easy maintenance. This is no longer enough. A more complete solution includes field training, training and more training.

Raypak’s service training facility in Oxnard has recently been upgraded to accommodate more schools, smaller groups and heavy hands-on training. We have also selected several regional locations around the country where similar operational training for any or all of our product lines will be scheduled. These will be addressed on a region-by-region basis, utilizing both factory and field Raypak personnel. Raypak has long been recognized for its extraordinary factory support in application assistance, troubleshooting and contractor service training. We know our efforts must be redoubled now, both at home office and locally.

Obviously, the light to medium commercial hydronic and DHW markets have always been Raypak’s special niche. The economic factors previously outlined indicate a gradual growth, both in replacement and new construction, as long as the economy continues to recover. Alternative energies such as solar thermal, ground water heat pump, waste heat recovery and more will see a rapid percentage expansion, as long as government subsidies continue. However, if at some point these approaches are forced to face a real world economic pay back analysis, their rapid growth curve will be seriously challenged. This is particularly true of solar.

We all want and need alternate energy sources that are not fossil-fuel based. Still, we expect natural gas products to become the primary fossil fuel for heating, electricity generation and, perhaps, automobile fuel, as the Western nations develop and invest in the conversion to alternative energy. New products and/or controls developed for hydronic and hot water heating should now include a convenient method for incorporating any and all potential supplemental sources as an option. For our industry, the biggest long term positive influence is that natural gas, already the cleanest and most available fuel, will be the bridge to a greener future. It will definitely be needed as a growing source of energy for several decades.