Page 25 - Oil and Energy January 2013

January 2013 • 25
Storm Recovery
Manufacturers,
Suppliers Meet Demand
Surge After Sandy
MANY THOUSANDS OF HEATING SYSTEMS
destroyed or damaged by Superstorm Sandy,
manufacturers and suppliers have ramped up
operations to meet the increased demand.
Before Energy Kinetics, in Lebanon,
N.J., could ramp up production, it had to
do its own storm repairs, because the storm
severely damaged the plant roof and tore off
six skylights. The morning after the storm
passed, President Roger Marran worked
with his team to muscle a 10,000-square-
foot section of rubber roofing back into
place. They also covered the skylight holes
and installed tarpaulin to save the server
room from water damage.
Despite $250,000 in damage and 11
days without utility power, the company
got back to work right away, using four
generators to power a limited production
and distribution effort. Getting back to
work quickly was important, because
demand for boilers spiked by about 60
percent, according to Marran. Due to some
advance work to increase production and
shore up inventory, Energy Kinetics was
able to fulfill all its orders. “Tuesday when
the storm hit was the only day we didn’t
ship any product,” he said.
To meet the increased demand, Energy
Kinetics switched to 10-hour days with
optional Saturdays and Sundays, Marran
explained. He expects to see increased
demand for eight to 12 months. Through
this month, the company is donating $100
to Oil Heat Cares for every boiler it sells.
TACO, BECKETT RAMP UP
In Cranston, R.I., hydronics manufac-
turer Taco has increased production after
coming through the storm intact. “”It was
immediately apparent that – because Sandy
hit hard in hydronics country – we’d have
to work hard to keep up with replacement
orders,” said Johnny White, Taco’s presi-
dent and CEO.
“Our focus at Taco is to eliminate any
bottlenecks in the pipeline,” said Ken
Anderson, Vice President of Sales for the
Northeast. “The focus is filling orders as
quickly as we possibly can and to coor-
dinate assistance wherever possible. The
replacement work in Sandy’s wake has
become a giant need.” Taco employees are
working overtime, and with overlapping
shifts to meet the need for replacement
products. Also, vendors were asked to
expedite material and component ship-
ments to meet the need.
“We set up a task force that meets daily
to streamline the delivery of products into
areas affected by the storm,” explained Todd
Facey, Senior Vice President of Sales and
Marketing. “We’re also working with many
of our OEM partners to help them ramp up
boiler production and shipments.”
Taco has also set a group on their FloPro
Team Neighborhood to connect contractors
affected by Sandy with other contractors
around the country that are willing to
provide assistance.
R.W. Beckett Corp. also experienced a
significant increase in demand following
the storm, according to Director of Sales
& Marketing Jonathan M. Beckett. “The
November demand was heavily geared
towards distributors’ immediate needs
for replacement parts and burners. That
has stayed steady in December, but with
a shift to new equipment for OEMs with
the demand shifting to replacing entire
systems.”
Beckett employees are working heavy
overtime to keep up with the increased
order load. Management was concerned that
their suppliers might get depleted, but for
the most part they have kept up, enabling
Beckett to avoid delaying shipments, which
were up 40 to 50 percent for November.
DISTRIBUTORS FEED HUNGRY MARKETS
Distributors are also answering the call
for new equipment. F.W. Webb’s stores in
New York and New England are filling lots
of orders from the storm-ravaged areas,
according to Heating Products Manager
Joseph Ruggiero. As the power came back
on and insurance settlements started taking
shape, demand spiked, and contractors
started calling F.W. Webb stores far from
the disaster areas. Stores in Newburgh, N.Y.,
and Hartford, Conn., got the most calls,
but even the Rutland, Vt., store received
inquiries, he said.
As of mid-December, F.W. Webb was
sending trucks full of boilers and other
heating equipment to Long Island daily.
“We sent an alert to contractors in those
markets and got a sudden rush of calls from
people saying they could not get equipment
in their area,” Ruggiero said. “They were
very appreciative of us reaching out.” Webb
has also had contractors drive to their
stores in places like Nashua, N.H., to pick
up equipment.
At Sid Harvey’s, Senior Vice President of
Sales & Marketing John Rynecki said that
stores in and around the recovery zones
continue to see elevated demand for heating
equipment. He expects the rebuilding
process to be spread out over many months
as the most devastated areas are rebuilt.
He said manufacturers have helped out
by increasing production, and contractors
are adapting to the supply challenges by
being open to brands that they might not
have used in the past.