Product development remains a top focus at Lochinvar

BY MARY JO MARTIN

Editorial director

Lochinvar Corporation founder Walter Vallett Sr. entered the water heater business in 1919. Vallett was a true industry pioneer, having been instrumental in the development of the first automatic gas-fired water heaters. He founded the Walter Vallett Company on May 16, 1946.

Vallett remained committed to the industry and active in the corporation, serving as Chairman of the Board until his death in 1982.  Bill Vallett Sr. took over as the second-generation owner of the business. His three sons -- Bill Vallett Jr., president, Tom Vallett, executive vice president, and Jeff Vallett, executive vice president -- currently own and operate the company that is now known as Lochinvar. All are active in the daily operations of the business. Other officers include Joel Usery, vice president-finance; Neil Rolph, vice president-engineering; Jerry Pfister, vice president-manufacturing; Mike Lahti, vice president-sales; Bob Lancaster, vice president-human resources; John Wyatt, vice president-information technologies; and Bret Thompson, vice president-quality assurance.

The company has grown steadily through the years, maintaining corporate headquarters in Detroit until 1970, when it acquired Wagoner Water Heater Company of Nashville, Tenn., and moved the corporate headquarters to Nashville.

In the late 1970s, Bill Vallett Sr. identified the need for higher-efficiency gas appliances. Bringing this vision to life, he led the development of the engineering system that has designed today’s line of high-efficiency water heaters and boilers. Lochinvar continues to manufacture high-efficiency water heaters, boilers and pool heaters.

In May 2000, Lochinvar broke ground for a new 360,000-square-foot headquarters and manufacturing facility in Lebanon, Tenn. Construction was completed a year later and operations were consolidated from six separate facilities throughout Tennessee to the new World Headquarters building. This facility, which was built adjacent to the tank plant, encompasses a world-class manufacturing operation, engineering research and development labs, a 104-seat amphitheater-style training center, a hands-on service and application training lab, a distribution center and administrative offices. The manufacturing plant operates on one shift per day, with a second shift during the peak season of their business. Many of its employees have been with the company for more than 20 years, while several have reached 30+ years.

In addition, Lochinvar maintains inventory of all of their products at its distribution centers in Nashville, Detroit, Philadelphia, Dallas, Tampa, Orlando, and Pompano Beach Fla.

From modest beginnings, Lochinvar has evolved into a major manufacturer and innovator of new products and technologies for heating water for both sanitary and space heating purposes. Notable examples are the Power-Fin, one of the most energy-efficient, non-condensing commercial water heater/boiler lines available anywhere and Copper-Fin II, the highly efficient successor to the original Copper-Fin line, offering some of the lowest NOX ratings in the industry today.

Lochinvar takes pride in its “engineered products concept” in pursuing the commercial/industrial and specialty water heating and hydronics markets. This concept encourages a close working relationship with consulting engineers, architects and project designers in the interest of developing water heating or hydronics systems perfectly suited to specific project requirements. 

Stirling Boston, marketing manager, recently shared his thoughts on the keys to Lochinvar’s continued growth and success with editorial director Mary Jo Martin.

MJM: Beyond the U.S., how far does Lochinvar’s reach extend globally?

Boston: Lochinvar distributes its products throughout the U.S. and Canada, along with such export markets as Hong Kong, Taiwan, Korea, China, Europe, the United Kingdom and the Middle East. Our representation currently includes independent representatives and company sales and sales management personnel, each offering the most professional sales and technical expertise available. This approach allows the company to be flexible with their representation based on the needs of the territory that each district sales manager/manufacturers representative represents.

MJM: How has Lochinvar changed to stay ahead of or adapt to changes within the industry as a whole?

Boston: Lochinvar continues to lead the industry in new product and technology development. For example, in 1986 Lochinvar introduced the first fan-assisted sealed combustion heating boiler which was revolutionary to the industry. Many have followed in the industry, but Lochinvar has managed to stay ahead of the curve with continued investments in revolutionary water heating technology.

MJM: Talk about the tremendous efforts that go into R&D to develop and launch new products? How are these ideas generated and what type of process do they go through before being brought to market?

Boston: Lochinvar maintains a product development plan that involves teams that are dedicated to specific projects. While many visitors to Lochinvar enjoy an in-depth tour of their manufacturing, training and research and development facilities, products in development maintain “top secret” status and are released for sale to the industry through elaborate new product release initiatives.

MJM: Lochinvar University has taken a very active role in training and education. Can you please describe the types of classes offered, range of attendees and how important it is to both Lochinvar and its customers?

Boston: Lochinvar University maintains an annual education program that is a trusted resource for industry professionals seeking expert information on Lochinvar products and application. 

Beginning in February and continuing through October, Lochinvar University offers boiler application, water heater sizing and application and product-specific service schools. The classes take place at the Lebanon headquarters near Nashville, and Lochinvar provides all meals and hotel accommodations during participants’ stay. 

The Boiler Application School teaches individuals involved in boiler system design how to select the correct boiler, vent system, pumps, piping system and control system for boiler applications.  This three-day class is taught by experts in their respective industries and tuition is free. 

The Sizing and Application School is a free, two-day session open to individuals involved in both commercial water heater sales and the selection and sizing of water heaters. Attendees learn the features and benefits of the Lochinvar commercial water heater product line, how to select the product best suited for a specific application, and how to correctly size the water heater to provide adequate volumes of hot water at a desired temperature.

Lochinvar Service Schools are offered to service technicians who have a basic knowledge of water heaters and boilers and are interested in learning installation and service of Lochinvar commercial products. The product-specific classes cover Intelli-Fin, Power-Fin and Copper-Fin water heaters and boilers, pool heater products and knight Heating Boilers. 

MJM: Describe how important your relationships with wholesalers are to Lochinvar’s business, and the steps that you take to develop, maintain and strengthen those relationships?

Boston: Lochinvar enjoys many strong relationships with the top wholesale distributors in the industry. Having products and support in the field is a key ingredient to Lochinvar’s continued success.

MJM: Describe the leadership philosophy with employees and with customers?

Boston: Lochinvar understands that the key to their success is their people and their customers. Bill Vallett Jr. always lists the employees as the number one asset of the company. Additionally, Lochinvar is a marketing company that listens to their customers and strives to provide the products, solutions and services that that their customers desire.

MJM: What types of programs do you have to hire, train and retain quality employees at all levels?

Boston: Lochinvar’s training and education doesn’t begin and end with teaching the industry. Many programs are in place through our corporate training manager to ensure that our employees are the best in the industry. Lochinvar offers competitive compensation, continuing education and a healthy working environment for employees.

MJM: Are you involved in any buying groups? How do you believe this improves both business relationships and buying opportunities?

Boston: Lochinvar understands the importance of participation in buying groups to their wholesale distributors and maintains relationships with many of them.

MJM: What are some of your most exciting new product launches, and how are these further diversifying the Lochinvar offering?

Boston: Lochinvar continues to raise the bar with high-efficiency water heaters and boilers.  Some of the most exciting new products include the recently enhanced Power-Fin, the new armor water heater and the knight heating boiler. 

The Power-Fin boiler and water heater line has set the standard for quality for more than 20 years.  Recent advances to the Power-Fin’s time-proven design include higher turndown ratio, a standard internal cascading sequencer, and control upgrades for easy installation, system set-up and troubleshooting. 

The new up to 98% thermally efficient armor water heater offers numerous advantages over other commercial gas water heaters in its class. Featuring inputs up to 500,000 Btu/h, a stainless steel heat exchanger, 5:1 modulating turndown and Lochinvar’s smart system™ operating control, armor stands tall in the market.

The Knight Heating Boiler is one of the most advanced, fully-modulating high-efficiency condensing boilers available.  With a 93% doe afue efficiency rating on the 80 to 285 models and a 95% thermal efficiency rating on the 399 and 500 models, knight can literally cut heating costs in half. Available in seven models with inputs from 80 to 500 mbh, the knight Boiler is equipped with a fully modulating 5:1 turndown burner and a sequencing feature that allows cascading of up to eight boilers. The 5:1 turndown feature allows the boiler to generate the appropriate amount of heat to provide a consistent, stable indoor temperature and keep fuel use to an absolute minimum.

Lochinvar also recently introduced the Squire Stainless Steel Indirect Water Heater, which saves homeowners money and protects the environment by using the same energy to hydronically provide hot water for potable use. This product can be coupled with any Lochinvar hydronic heating boiler (such as the Knight Heating Boiler) to provide one of the most energy efficient combination heating water and domestic water systems available today.                   

For additional information, visit www.lochinvar.com.