Experience Matters

Going Green

AE Smith Experience Matters What is Australia’s Best?

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Welcome

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Welcome to Green Cities 09 from Australia’s Best Building, Construction & Mining – the new industry publication set to take the country by storm.

Australia’s Best Building, Construction & Mining is a high-quality, quarterly publication that targets the ‘who’s who’ of the building, construction and mining industries; such as senior management with the ability to make purchasing decisions.

The publication showcases some of the leading names within the industry, as well as a selection of dynamic, up and coming companies who are set to make their mark. As well as interesting reads, Australia’s Best Building, Construction & Mining also features a number of interesting and informative reads about what is happening within in the industry and interviews with some of Australia’s top supply chain professionals.

The flagship edition of Australia’s Best Building, Construction & Mining is scheduled for release in mid-March 2009 and is packed full of informative profiles on a broad range of companies such as Brookfield Multiplex, Hansen Yuncken, United Group Veolia Environmental Solutions, Newmont and of course AE Smith.

Take a look inside at our feature on AE Smith and all the great work they are doing in an effort to create a sustainable tomorrow. We also talk with the General Manager of AE Smith Construction Melbourne, Peter Staedler about long term relationships with their suppliers and subcontractors.

The industry specific Australia’s Best series also includes titles such as; Manufacturing, Food & Drink and Retail. To find out more about us – take a look at our Website www.media.net.au.

Subscription to Australia’s Best is currently FREE – so make sure you get in quick! Simply subscribe via our Website, or fill in the form and simply fax it back to us to receive your free copies.

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Experience Matters Innovation and superior customer service are central to AE Smith’s success as a family-owned, 100% Australian business for over 111 years.

From its humble beginnings in 1898 as a one man plumbing business in Richmond, founder Albert Edward Smith set in motion an industry-leading company that would become one of Australia’s most successful family-owned businesses.

The growth of AE Smith into a formidable mechanical services company, with nine offices around the country, 600 employees and intrinsic involvement in Australia’s built environment, has been anchored around a combination of family values and an innovative vision for the future.

AE Smith’s impressive success story is traced through four generations and hundreds of talented men and women who have worked with the company.

Originally the company’s business success was due to

the huge demand for plumbing services during Melbourne’s settlement boom. Bert Smith, who was handed the business by his father and founder of the company, Albert, had a vision of broadening AE Smith’s services to include mechanical services for heating, cooling and ventilation, which saw the business take on larger projects in Melbourne. This passion for expansion was shared by the founder’s grandson, Barry Smith who took over the reins in 1953. Under his leadership, AE Smith opened offices throughout the country and added further landmark projects to the company’s portfolio.

But just as importantly, AE Smith continued to build on a culture of integrity and innovation amongst staff that has created an enviable team of leading engineers and trades people.

Ella Ozberk and Raymond Lee get their hands dirty at a Greenfleet planting day inside the Ostrich enclosure at Werribee Open Range Zoo.

The company proudly boasts a host of employees who’ve been with AE Smith for as long as 50 years – a testament to the passion employees have shared for growing the business.

AE Smith is now headed by CEO Andrew Permezel – a continuation of the family dynasty. At the helm since 2001, Permezel carries on the AE Smith vision of combining family values with business innovation.

Some 111 years later, the company is regarded as an industry leader in mechanical services and a major player in shaping Australia and New Zealand’s building industry. Working with Australian and international partners, AE Smith collaborates on multi-million dollar projects, new developments and landmark buildings including the award-winning Darwin Convention Centre and the tallest residential building in the world; Melbourne’s 92-storey Eureka Tower. One of AE Smith’s impressive accomplishments is the redevelopment of Melbourne’s sporting icon, the MCG, which demonstrates the level and scope of the company’s strong partnerships with both Australian and international associates. The organisation’s mission is to build worthwhile partnerships by delivering responsive, innovative and professional mechanical and environmental services that provide sustainable solutions for their customers.

AE Smith is truly a partner of first choice for commercial air conditioning and mechanical services, including environmental controls and energy reduction solutions for buildings and facilities.

As a BRW Top 500 Private Company, the difference when working with AE Smith is easily observed as indicated in their integrity, attention to detail and personal service sets. It is these qualities that have kept the business running over the years and sets them apart from their competitors.

Riparian Plaza, Brisbane

* 2007, United Nations Environment Programme, Buildings and Climate Change, pp. v & 12.

Cool Operators AE Smith are also recognised for pioneering various business stewardship issues that would never have been considered by founder Albert Smith 111 years ago – particularly major initiatives to reduce the impact of the air conditioning industry on the environment such as their partnership with Greenfleet.

In an effort to create innovative ways to reduce their greenhouse impact on the environment, AE Smith has become the first and only air conditioning company to be a supporter of Greenfleet. The company is bringing their association with the notfor-profit forestry organisation to life by combining traditional vehicle offsets with a special tree planting program. The goal of the programme was to plant 10,000 trees by 2010 as part of a bid to help reduce the impacts of the air conditioning industry on the environment, however, AE Smith have superseded this and is on target to plant an astounding 11,500 trees by the end of 2009.

“AE Smith realises we’re in an amazing position to lead our industry and make a difference,” comments AE Smith Group General Manager, Aldo Cevaal, who is well aware that 30-40% of all primary energy is used in buildings, of which up to 50% in Australia is used for heating and cooling commercial buildings alone*.”

While AE Smith seek out new design, construction and servicing approaches to help customers be more energy efficient, Mr Cevaal believes the partnership with Greenfleet gets customers’ attention focused on the environment: “Leading the way with Greenfleet and a bold tree planting goal offers a great tool to connect to our customers on the simple ways they can reduce greenhouse emissions,” he states.

Sara Gipton, CEO of Greenfleet, agrees industry support for environmental action is a key driver for change in the community.

Australian Stockman’s Hall of Fame, Longreach

Eureka Tower, Melbourne

“We see an opportunity to show building owners, property professionals and facility managers how to unlock the sustainable potential of buildings and generate positive commercial outcomes.”

Doug Binns

“AE Smith is inspiring other companies to support Greenfleet and start taking action to reduce their emissions,” she comments.

In November 2008, by purchasing another Greenfleet future offset to sequester greenhouse gases, AE Smith have assured that even more trees will be planted one year ahead of their original goal of planting 10,000 trees by 2010. Over the next 12 months, Greenfleet will plant 3,049 biodiverse native trees that will offset an estimated 817 tonnes of greenhouse gases emitted by the

greenhouse impact – and converting a fleet of company cars to LPG means around 10% less emissions,” says Greenfleet’s Sara Gipton.

The commitment to acquiring more energy-efficient transport is a small but important contribution to AE Smith’s overall vision to help change the greenhouse footprint of the air conditioning industry.

“At every level we can help,” says Graeme Stewart, AE Smith’s Perth General Manager who just received delivery of two Ford LPG utes with

the growing concern about improving the environmental performance of buildings along with the foreseen demand to ensure buildings are as efficient as possible and energy smart, especially given the significant increases in the cost of energy and the pending legislation around carbon emissions with the introduction of the Carbon Pollution Reduction Scheme (CPRS). Led by General Manager Doug Binns, AE Smith customers can now turn to EmeraldESP to find ways to turn their commitment to being efficient with energy and water management of their

“AE Smith are inspiring other companies to support Greenfleet and start taking action to reduce their emissions.”

Sara Gipton – CEO, Greenfleet

AE Smith commercial vehicle fleet. In addition to offsetting greenhouse gas emissions from AE Smith vehicles, restoring native forests by planting native trees helps improve water quality, reduce soil degradation and provide essential habitat for native species.

While AE Smith’s major tree planting initiative is gaining momentum, the Perth AE Smith team have gone one step further and implemented a company policy to replace existing petrol service vehicles as they come up for replacement or renewal with dedicated LPG utes manufactured by Ford Australia.

“Investing in more efficient technology is a key part to reducing an organisation’s

more to come in the months ahead.

“From how we educate our customers on being more energy efficient, to arriving at a customer’s site in a carbon offset AE Smith vehicle, it’s all steps towards the bigger picture of reducing the negative environmental impact of commercial air conditioning systems,” he explains.

AE Smith have also launched an exciting new energy services business that is aimed at addressing the growing concern about the environmental impact of energy consumed in commercial and industrial facilities. Emerald Sustainable Performance (EmeraldESP) is the most recent step in the 111 year evolution of AE Smith.

EmeraldESP was created in response to

property assets into reality.

With a variety of tools, EmeraldESP will work with building owners to identify and implement sustainable practices to improve a building’s overall energy efficiencies.

“We recognise there is a strong desire within many organisations to take positive actions to reduce their environmental impact, especially around energy consumption and carbon emissions. There is also a lot of confusion about how to achieve the desired results in a commercially viable way, especially given the current economic and business climate,” comments Doug Binns.

“We see an opportunity to show building owners, property professionals and facility

managers how to unlock the sustainable potential of buildings and generate positive commercial outcomes,” he adds.

EmeraldESP will draw on the combined expertise of Doug Binns, Cameron Buck (National Sales Manager), Michael Kiraly (previously General Manager of Facility 1st and now EmeraldESP Project Manager) and David Odd (Energy Engineer). Together, they’ve already developed a strong suite of tools and frameworks that can be applied to a variety of buildings with methods for decreasing energy and water consumption as well as improving efficiencies to reduce environmental impact – and cut costs.

“We’re keen to highlight to customers how Emerald Sustainable Performance can help reduce costs and other business benefits – important in the current business environment.”

With construction, maintenance and engineering facilities across Australia and in New Zealand, AE Smith have the experience, resources and customer service to exceed expectations. The foundation for their success lies in providing effective and innovative building services solutions to their partner customers.

From the passion and vision of Albert Edward Smith back in 1898, to its outstanding record of growth into a BRW Top 500 Private Company and its proactive environmental initiatives,

AE Smith remains a proudly Australian family-owned business that promises to live on for another 111 years.

For more information on AE Smith and Greenfleet visit www.greenfleet.com. au or www.aesmith.com.au.

AE SMITH AT GREEN CITIES 09 AE Smith’s sponsorship of the 2009 ‘Green Cities’ conference will provide the launching pad for the company’s new energy service business that’s aimed at helping create high performance green buildings.

Emerald Sustainable Performance (EmeraldESP) is an exciting new step in the 111 year history of AE Smith – and will be showcased to building professionals at the Green Cities 09 event being staged in Brisbane in March.

“AE Smith believes we’re an important part of the solution for creating high performance green buildings, so it makes sense to partner Green Cities 09,” comments AE Smith’s CEO, Andrew Permezel.

“As Australia’s preeminent ‘green building’ event, Green Cities 09 offers the perfect way to highlight our commitment to reducing the environmental impact of our industry and show property professionals how to improve the energy and environmental performance of their building assets,” he adds.

EmeraldESP’s creation is in response to the growing concern about improving the environmental performance of

buildings along with the foreseen demand to ensure buildings are ‘energy smart’.

AE Smith’s EmeraldESP team, led

by General Manager Doug Binns, will be at the Green Cities 09 event to highlight how property professionals can use EmeraldESP to turn their commitment to being efficient with energy and water management of their property assets into reality.

With a variety of tools and frameworks, EmeraldESP will work with building owners to audit and implement sustainable practices to improve a building’s overall efficiencies, reduce environmental impact – and cut costs.

“We realised there’s been confusion around improving the environmental performance of buildings but a strong desire to do something positive,” comments Doug Binns.

“We saw an opportunity to help property professionals and asset managers unlock the sustainable potential of buildings and also generate positive commercial outcomes important in the current business environment,” he adds.

What are some important aspects you consider when assessing suppliers and subcontractors to work with AE Smith?

Peter Staedler

“We truly believe we’re only as good as the support we receive from our subcontractors – so we work very hard at maintaining strong and long term working relationships.�

Peter Staedler

Supply Chain Focus with Peter Staedler, General Manager Melbourne, AE Smith How have you developed strong and long term working relationships with your suppliers and subcontractors?

AE Smith’s core business value is to be “partner of first choice� – and that’s not just for clients – but also for the various suppliers we work with from consultants to builders.

We truly believe we’re only as good as the support we receive from our subcontractors – so we work very hard at maintaining strong and long term working relationships. We have one long standing relationship in particular that dates back 30 years!

As some of our employees have been with us for 20, 30 and 50 years (I’ve been with the company myself for 37 years), some of our supplier relationships do go back a long way - and I feel this longevity is due to the approach of involving our subcontractors proactively as an integral part of a project. It’s a collaborative style that ensures our suppliers feel valued and means we can work together to deliver on highly specialised projects.

There are a few fundamental ingredients AE Smith looks for when considering new suppliers – firstly, they need to have strong Occupational Health and Safety (OHS) values to work with us. We work very hard at creating a Safety First culture with a commitment to “Zero Harm� in the work place, so our subcontractors and suppliers need to be on the same page.

Secondly, it’s important to have a Quality Assurance scheme and all the necessary insurances in place – which ensures our suppliers are following suit with AE Smith’s various accreditations. In fact, I’m delighted to tell you that the Workplace Heath & Safety Management System designed

by AE Smith has recently achieved certification to AS/NZ 4801. AS/NZ 4801 is the Australian/New Zealand Standard specifying requirements for an OHS management system. And thirdly, we always assess if we can be supplied with the right product or service at the right time at a competitive price.

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Do you have any particular techniques in place at your company to ensure efficient supply chain and subcontractor management?

We’ll meet regularly with our key suppliers and subcontractors to review where we’re at currently as well as look at future projects in our industry and where we can work with them. It’s a great way of involving suppliers in opportunities from the very beginning and assemble the best team. For instance, we’re about to start talking to a number of our key subcontractors about a project that will not be starting until 2010 – so there’s plenty of time to see who is interested and capable of coming on board.

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