Refrigerant Resolutions

With commercial new construction floundering in the high waters of the U.S. economic crisis, commercial refrigeration contractors seeking to stay afloat must continue to provide the best service possible to existing customers. That activity includes refrigerant leak prevention, refrigerant recycling to improve the stockpile of R-22, alternatives to R-22, and enhanced service to customers who have delayed new equipment installations.

Contracting Business spoke to contractors, manufacturers, distributors, and refrigerant reclaimers to gain some insight into what lies ahead, and what action they’re taking to help the industry better prepare for 2010.

Increased Service Opportunities
Historically, customers prefer to do all they can during recessions to maintain their present equipment. Therefore, smart refrigeration contractors will likely want to do all they can to increase service offerings to price-conscious customers.

“With the downturn in new building, companies and individuals will be focused on service and service-related products,” according to Gordon McKinney, vice president and COO of alternative refrigerant supplier Icor, Indianapolis, IN. The alternative, McKinney says, is business failure.

“I’ve spoken to the owners of residential HVAC companies who have shut down their new construction divisions and are building up their service sides,” McKinney says.

Bill Almquist, CEO of Almcoe Refrigeration Company, Dallas, TX, says many of his customers have expressed strong interest in system maintenance as a way to address energy efficiency.

“They see the benefit of getting the equipment back to its original condition as it relates to cleanliness, recommissioning, and the installation of oil management systems, which enhance the efficiency of condensing units, particularly on rack systems,” Almquist says.

“There also seems to be interest in retrofitting improved controls onto rack systems. Newer devices provide tighter temperature control due to the speed of the processors.” Almquist agrees with McKinney that the commercial refrigeration industry is riding the crest of an economic wave related to new facility construction, and he’s getting his team ready for a demanding, service-oriented stretch.

“We’re focused on further educating employees so we can have the best service technicians possible. Service will drive our industry through the next business cycle more than new installations,” he says.

Dan Steffen, vice president of AAA Refrigeration Services, Inc., Bronx, NY — the Contracting Business 2008 Commercial Refrigeration Contractor of the Year — says AAA continues to work with customers to help them understand their options and save energy.

“Our customers still have a high level of uncertainty surrounding the replacement of R-22. Nobody has a definite idea of how it’s ultimately going to end, and the incentive for some of our customers to make any decisions related to alternatives isn’t there yet,” Steffen says.

“The majority of our customers are locked in to inclusive contracts that specify standard refrigerants. In the meantime, we’re focusing our efforts on the things that save our customers energy whenever possible. Energy dollars are still high, and utility costs are a major portion of a supermarket’s energy usage. In our consultations with customers, we encourage them to pursue preventive maintenance to keep their equipment operating at peak performance, and to replace equipment that’s beyond its lifespan.”

25 Million Pounds of Leaks
Expanding your service offering to include refrigerant leak prevention is just the tip of a significant money- and refrigerant- savings iceberg.

“Leaky systems are the worst thing for our industry,” says Ted Atwood, president of Polar Technology, a refrigerant reclamation and sales company based in Nashville, TN. “There’s well over 100 million pounds of R-22 that was sold in the U.S. in 2008. If the average leak ratio across the industry is 25%, that means 25 million pounds of it will eventually be lost. If the Environmental Protection Agency’s (EPA’s) requirement for 2010 is for an additional 35% reduction in available material, we could offset the demand just by tightening up leaks.”