Aaon, Inc., Blowing hot and cold

Manufacturing in Action, Source : The Manufacturer US

Air conditioning is part of the working and home landscape, and it’s good business for Aaon, Inc.,
Ruari McCallion reports

The thing that has set humanity apart from the animal kingdom, right from the dawn of time, is our ability to control our environment. If it rains, animals have to take shelter wherever they can find it: we build our own, wherever we want, and use them for work, rest, and play. If it gets cold, animals either die, move somewhere warmer or, over time, develop extra-thick fur. We learned how to make fire and, in so doing, opened up the coldest places on Earth for settlement.

But don’t forget the opposite extreme, too. Our forefathers couldn’t live in the desert for any length of time or in any great numbers. Water was part of the problem but the heat was the greater hurdle. Then, along came air conditioning and it became possible to live and work through the hottest parts of the day in the hottest parts of the country. Some of America’s greatest and most vibrant cities would, quite possibly, not even be there at all if air conditioning wasn’t available. Think of Phoenix, AZ: possibly the fastest-growing city in the US, it wouldn’t be so attractive if its inhabitants had to put up with the unfiltered intensity of the Southwestern sun. Even New York would struggle, big time, without the cooling effect of air conditioning in the shops, restaurants, offices, and homes that make up the world’s greatest financial and commercial center.

Tulsa, OK, is the headquarters of a company that has made it its business to enable companies to create a comfortable working environment, across the country and in a range of different situations. Aaon, Inc., is a specialist in the design, engineering, manufacturing, and marketing of air conditioners and heating equipment. It makes pretty much everything in the heating, ventilation, and air conditioning (HVAC) market, from rooftop air conditioners through coils, heat recovery and air handling and condensing units, as well as commercial water chillers, for buildings up to 10 stories high. Whether it’s a new build situation or a replacement requirement, Aaon maintains that it will have the solution. It’s a claim with some weight behind it, because the company’s client list includes some of the most demanding customers around: Wal-Mart, Home Depot, and Target Stores aren’t known for taking second-best.

Aaon is organized into two companies: Aaon, Inc., which is based in Tulsa, and Aaon Coils Products, Inc., which operates out of Texas. It makes five series of rooftop heat-recovery and heating systems, from two to 230 tons. As a matter of interest, a standard commercial building needs a ton of cool air for every 300 to 400 square feet of floorspace. The RL Series are the real heavyweights. They come in two models: air cooled and evaporative cooled, and both can supply between 45 and 230 tons of cooled air—enough power to condition 9,200 square feet. They both have walk-in doors for all regular maintenance points, as well as a walk-in service center access. Roof-mounted air conditioning units are likely to face heavy weather conditions, so the cabinets are constructed of G90 galvanized steel, which is finished with gray polyurethane paint rated to 2,000 hours salt spray test, and the doors are mounted on stainless-steel hinges, with zinc cast lockable handles. They open against air pressure, so they’ll automatically shut, to ensure protection from the weather for controls and maintained areas.

Compressors can be noisy items. There’s no way of making them completely silent—short of shutting them off—but placing them on rubber insulation mounts minimizes any disturbance. The refrigerant circuits all feature automatic reset low-pressure cutouts and manual reset for high-pressure safety. Surfaces that are exposed to water are 304 stainless steel, copper, or other non-corrosive material. The spray nozzles are designed to be easily removed, for cleaning. The list of standard features is pretty long; the available options, likewise. Heating can be by electricity, gas, or hot water; economizer choices range from fully manual to fully modulating, enthalpy controlled. Aaonaire energy recovery wheels, rated to ARI standard 1060, can be nominated as a factory-fitted option.

Heavy-duty units, like the RL Series, are just fine when you know exactly what area you have to deal with, and it’s likely to stay the same for a long period of time. But needs change and Aaon’s Celebrity 1 modular air handler units recognize the fact. Reasons may vary: it could be an upgrade or replacement of an existing unit; it could be a new building that’s part-occupied; it could be any of a dozen other reasons. The modular construction allows a variety of configurations: it can be horizontally or vertically mounted and, because it’s modular, additional capacity can be easily added at any time.

In May of this year, Aaon announced that it would be using Copeland Scroll compressors across its entire range. Norman Asbjornsson, president of Aaon, said that the Copeland equipment has delivered outstanding reliability and value. It also helps any company to contain costs if key components are coming from a small number of long-term partners.

Any company in the HVAC business is going to be subject to the ebbs and flows of the construction industry. Aaon seems to have weathered the recent downturn rather well. Revenues declined between the years ended December 2001 and 2003—by $6.5 million, around four percent—but costs of goods have gone down faster, by over six percent. It adds up to an improved gross margin, up from 27.5 to 28 percent. Net income after taxes has stayed pretty steady, at $14.2 million, gross revenues of $148.8 million. Inventories have increased over the 12 months to June 2004—but so have revenues, by about the same amount. Construction—and HVAC—is a tough market right now. Aaon has both the customer base and the product range that should see it through to the upturn.

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