Daikin Applied Acquires Dynamic Controls

The move brings a new set of capabilities to Daikin Applied, a division of Daikin Industries, Ltd., the world's largest heating, ventilation and air-conditioning (HVAC) manufacturer. Daikin Applied has a legacy of designing and delivering innovative HVAC solutions that not only provide unmatched comfort, but address larger societal needs like improving air quality and cutting carbon emissions. Its offerings include equipment, services and controls for commercial and industrial facilities.

With Dynamic Controls' integration expertise, Daikin Applied will link these HVAC technologies with other building systems, such as security, life safety and energy management. The connectivity provides an enterprise-wide view of the entire facility, as well as comprehensive data and analytics, so customers can control and enhance all aspects of their operation.  

"HVAC is one critical piece of a larger ecosystem that needs to be managed," said Mike Schwartz, president and CEO of Daikin Applied. "Dynamic Controls offers the skills and experience to combine our industry-leading equipment and controls into a customized and integrated building systems solution. A fully connected and optimized enterprise gives owners and operators the tools and insights to create more efficient, safe, healthy and comfortable spaces."

Daikin Applied serves customers through a network of independent and company-owned sales representatives and service offices. Dynamic Controls will collaborate and consult with these groups to bring a more diverse set of solutions and new value to customers. 

"Daikin is the right fit for Dynamic Controls and the same is true in reverse," said Jeff Gross, Dynamic Controls president and CEO. "Not only do we build on each other's strengths, we have a shared passion for defining what's possible and delivering an unrivaled customer experience. We're thrilled to join the Daikin team and be part of its ongoing success."

Jeff Drees, executive vice president, sales, marketing and aftermarket for Daikin Applied, told Contracting Business the acquisition will enable it to expand services, by combing the collective knowledge of both companies into buildings and controls.

“With controls and buildings becoming much more integrated and intelligent, we have relationships we can extend into connected services platforms,” Drees said. “We’re assessing and diagnosing problems in buildings in advance of the customer even knowing about them. We can solve problems quickly, and guide them to ways a building can be run more efficiently. We’re taking the knowledge of our Daikin Applied equipment business and how buildings come together and work through controls, and offering that as a new service for customers.

Daikin Applied holds Dynamic Controls in high regard, and refers to the company as a welcome "center of excellence" in the Daikin Applied fold.

“Dynamic Controls becomes a center of excellence for us, in the way we service national accounts. They also have national accounts for which we can help them with the full capabilities around all of the equipment and controls. We now help influence -- if you look at our national account customers -- a much bigger footprint of where they consume energy, with equipment, through controls systems, so we now have products and service that touch a higher percentage of the customer’s energy bill. I would say we have their attention now, more than ever. Dynamic Controls can be extended across our national accounts and more broadly offer capabilities to impact a much higher percentage of their utility bills.”

Drees said the partnership will bolster Daikin Applied’s profile as a full-system provider: equipment plus controls.

“The capabilities we now have enables Daikin Applied to be stronger in new construction or plan-and- specification. We’ll be able to have a basis of design that brings controls and equipment together, and an entire retrofit any of our competitors’ equipment and controls. In the past we were able to add to our competitors’ equipment in a building. Now, we can come in and retrofit the control system, whichever brand in in there, and offer the controls and our equipment, and, especially in a retrofit, become more of a partner for the customer, where they don’t need multiple sources of procurement. They can go to one source – Daikin Applied and DCI, for equipment and controls.

“We have a very strong network of reps who distribute and sell Daikin Applied equipment products. There will be a local rep combining that equipment with Dynamic Controls, offering that as a service to our customers.”

Dynamic Controls has offices in Colorado, Illinois, Missouri and Wyoming. It also operates as Energy Tech Systems, Inc. in North Dakota. Combined, they are the leading systems integrators in their territories and Schneider Electric EcoXpert Partners. The companies will join the Daikin Applied business, but will retain their entire staff, as well as the Dynamic Controls and Energy Tech Systems names.

The acquisition furthers Daikin Applied's efforts to augment best-in-class technologies with complete lifecycle solutions.

To learn more about the full range of Daikin Applied solutions, and to find a local sales representative, visit www.daikinapplied.com. Also, follow Daikin Applied on LinkedIn for the latest on commercial HVAC equipment, services and trends.

Jeff Drees interview by Terry McIver