Committed to providing durable, long-lasting products

BY MARY JO MARTIN

Editorial director

State Water Heaters has a long and storied history providing quality products and service. The company was founded in 1946 by Herbert Lindahl Sr., originally producing coal- and wood-burning stoves in a garage in Nashville, Tenn. In the ensuing years, State expanded into water heaters, developing a reputation for sourcing new materials, technology and the latest engineering techniques -- eventually becoming the largest water heater manufacturer in the world. Throughout its history, State has maintained strong ties to the wholesale plumbing channel and to the hard-working plumbing contractors who install their products. State has continually developed programs and materials to aid its customers, which the company insists will continue to be a focus.

Among the most pivotal introductions in State’s history were the launch of porcelain glass-lined tanks in the late 1950s and the Sandblaster commercial design in the late 1970s. These revolutionary technologies reinforced State’s long-standing objective of providing end-users with a durable, long-lasting line of water heating products.

In 2001, State Water Heaters was acquired by A.O. Smith Water Products Co. Based in Ashland City, Tenn., State has seven water heater manufacturing plants around the country. Hundreds of distribution centers across the U.S. ensure efficient service to State’s national customer base of residential homeowners, wholesalers, contractors and other members of the engineering community. A total of 19 State employees celebrated 40 or more years of service to the company at the end of 2006, evidence that the durability of State Water Heaters starts with its long-lasting, tough employees.

Now under the A.O. Smith umbrella, the State brand remains devoted to staying true to its history and its commitment to wholesalers.

“State’s goal is 100% total customer satisfaction,” said Jeff Storie, State brand manager. “In addition to product quality and durability, State strives for complete and on-time shipments and deliveries. This 100% total customer satisfaction influences our strategies for efficiency -- fulfillment, accuracy and lead times are all guided by this principle. 

“State communicates daily with customers; they are aware of production schedules, new product information, and always know when to expect delivery as soon as they place an order. Also, our service agents go through a certification process to ensure that our customers are receiving the highest customer service.”

Product development

Among State’s most recent product launches are the Select® Ultra Low nox line, upgraded Commercial Ultra Force units, along with a new line of tankless gas water heaters:

• The Select Ultra Low nox line of residential gas water heaters consists of five new models with reduced emissions output; these models meet the new requirements for installation that began January 1, 2008, in the five California counties of the South Coast Air Quality Management District (SCAQMD). The Ultra Low nox units use a new hybrid radiant burner system to meet the 10 nanograms/joule nox requirements established by SCAQMD. The burner system offers an increased surface area, durable stainless steel construction, and a cooler burner flame. This design results in 15% less co2 and four times less nox.
• The new Commercial Ultra Force models offer installation flexibility and durability in addition to providing up to 96% thermal efficiency. The upgrades include an improved burner system with power from the top down, allowing for quieter operation and an enhanced rate of heat transfer for increased efficiency. They also include powered titanium anodes, providing longer-lasting tank protection and more dependable operation by reducing corrosion with no required anode maintenance or inspection. Superior durability is further ensured through corrosion-resistant tanks, constructed with commercial quality glass lining on the heat exchange coil and all water-side surfaces.
• In December, State launched a new line of on-demand gas water heaters, featuring 16 different interior and exterior models designed for residential and commercial applications. These tankless units provide continuous flow by igniting a burner only when the heater senses there is a demand for hot water. The high-fire burner quickly raises the temperature of the water passing through a copper heat exchanger, with no standby loss of efficiency. The units provide up to 9.8 gallons of water per minute, and offer significant energy cost savings with up to 84% efficiency.
  

According to Storie, State enjoys several differentiating factors to ensure durable products. He outlined the unique attributes of the State brand:

• One of the highest-quality glass linings in the industry
• Enhanced self-cleaning ability
• Dependable, self produced parts and components.

All State products undergo rigorous testing to ensure they are of the highest quality before reaching the marketplace. In addition to in-house testing capabilities, State implemented an “extreme testing” program that is conducted in tough climates such as Roswell, N.M., and Denali, Alaska, to test the strength of its products.

The brand’s R&D department is dedicated to continual research and material sciences, always searching for solutions to improve its product offering. “State is committed to being on the forefront of technological design, and pools talents and resources to obtain the highest level of engineering experience and knowledge base,” said Storie. “State holds more than 177 patents for product design, engineering and manufacturing.

Building relationships

State took its marketing program to a whole new level last year, with its sponsorship of the #4 car on the NASCAR Nextel circuit. In addition to brand exposure, the racing sponsorship has created some unique opportunities for State’s wholesalers and distributors. 

“We have used the race program to solidify relationships with existing customers and we have used it as a platform to entertain perspective customers,” explained Storie. Additionally, the race program has been a unique way for wholesalers to motivate their own sales forces by rewarding sales achievements with race tickets, further ensuring growth with contractors.

“State places strong emphasis on marketing, especially through our NASCAR partnership,” Storie said. “This presence allows us to reach consumers with our name, increasing brand awareness. This visibility will help the businesses of our wholesale customers.  Also, State has been able to interact with our customers in more social settings due to the racing program. Each race weekend, we invite customers to attend the race so we can better understand their business needs and they can learn more about the State brand. This has been a very successful way to connect with our wholesaling and contracting partners.”

In addition, State Water Heaters launched an integrated marketing effort aimed at Spanish-speaking contractors in key U.S. markets in 2007. “The Hispanic population serves as a major force in both the building/construction industry as well as the HVAC industry, both being critical to State’s business,” Storie noted. “Initial initiatives included new Spanish language print advertisements, Web enhancements and a television sponsorship -- all designed to raise State brand awareness among Hispanic communities. The second phase of the campaign focused on community-based efforts, supporting programs that educate and enrich the lives of Hispanic families and students.”

Future plans for the initiative include a student scholarship and website translation.

To keep customers and reps current on State product launches and features, several training programs are held annually at the company’s state-of-the-art training facility. These programs include training designed for sales representatives, a Products/Services class for plumbing professionals, and an Advanced Services School. Courses cover a wide range of product, installations and servicing, and are offered in an easy-to-understand format with hands-on training. The courses draw hundreds of participants each year.

Looking forward

Fortunately, State has not felt many ill effects from the downturn in the U.S. housing construction market, because a large percentage of its business is replacement units. However, they have placed a greater emphasis on the attributes of high-efficiency units, such as the residential Premier Power Vent, in an effort to effectively “sell up” during this time when wholesalers and contractors may not sell as many total units.

Going forward, State will continue its focus on being a good partner to the wholesale channel and to build durable products. State plans to continue its brand awareness efforts through its NASCAR sponsorship and Hispanic outreach efforts in 2008, building on the success these programs have already realized.

For information, call 800/365-8170 or visit www.statewaterheaters.com.