Fall 2019 Air Media

AIRMEDIA

FALL 2019

Saving Energy with Efficient Belt Drives

National Air Filtration Association 1818 Parmenter St, Ste 300, Middleton, WI 53562

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www.nafahq.org â–Ş The source for expertise, education and standards in air filtration

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AIRMEDIA Publisher

National Air Filtration Association

Table of Contents Features Saving Energy with Efficient Belt Drives

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TECH2020

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Terry Driscoll NAFA Association Coordinator

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Publisher’s Note

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Editor

Michelle Czosek, CAE NAFA Executive Director

Designer and Content Editor

Air Media magazine is published three times per year by the National Air Filtration Association. Annual dues are $520 for Distributor Membership and $945 for Manufacturer Membership; dues include a paid subscription to Air Media.

Air Media provides a forum for the free exchange of opinions and information. The views expressed herein do not necessarily represent those of NAFA, its officers, directors, membership or staff. Your contributions help make this magazine an interesting and informative forum for exchanging ideas and recognizing the advancements in our industry.

Neither NAFA nor Air Media is responsible for claims made in advertisements.

Editorial and advertising closing dates are the first of the month prior to issue.

National Air Filtration Association (NAFA) Headquarters

Departments President’s Message

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Welcome to NAFA

3

2019 Board of Directors

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NAFA News

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New Certified Personnel

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Industry Calendar of Events

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Technology Corner

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From the Executive Director

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1818 Parmenter St, Ste 300 Middleton, WI 53562 Phone: 608-310-7542 Email: nafa@nafahq.org

www.nafahq.org

1

President’s Message

by Trey Fly, CAFS, NCT II

Dear NAFA Members,

Hope you all enjoyed a wonderful summer with plenty of growing business opportunities. I love summer not only because of the increased demand for filters, but because it gives me an opportunity to spend time with family and reflect on the real reason I try to do my best every single day.

I truly enjoyed catching up with many of you in Montreal which turned out to be one of our best Annual Conferences to date. Montreal is a wonderful and vibrant city with so much to offer. The NAFA Board put together an excellent program of industry and business experts. The facilities, food, and events were all top notch. I also wanted to congratulate the new Board members who have volunteered their time to help NAFA as we continue to grow and become an even better resource for our filtration professionals. Next, I have to commend our many Clean Air Award winners for their efforts to make their buildings the best indoor environments for their employees. Lastly, I want to thank the NAFA staff for organizing the conference and streamlining everything.

So much goes into planning these conferences and must happen behind the scenes – we honestly couldn’t do it without Michelle, Terry, and the rest of our incredible NAFA staff.

My time as President has flown by and I can’t believe this is my last newsletter to this beloved organization.

If I were to thank everyone that has helped me along the way, it would take up this entire page. If you have helped or inspired me, thank you from the bottom of my heart. Although my time has come and gone, I feel like we have accomplished some great things. One major milestone was the presentation of the new NAFA Strategic Plan which creates a road map and quantifiable goals for the organization to strive to achieve.

NAFA is healthy and strong, but with this road map in mind, we feel that the best is yet to come. This Strategic Plan

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will ensure that NAFA continues to grow sustainably and provide benefits and value for our industry for many years. Another major initiative of mine was to get new faces involved in the organization who hadn’t previously been significant contributors. Although we appreciate and owe gratitude to our perennial contributors, we need new ideas and some young professionals to get involved with NAFA on a deeper level. We have successfully recruited new Committee Chairs and Board Members who will give fresh perspective to the group. We also launched a “Young Professionals” group to develop the up and coming stars of NAFA – I may be best remembered for the YP Happy Hour that seems to be a huge hit with this group! Another achievement over the past year was the launch of the NAFA podcast and use of new media for the digital age that we live in. If we are going to continue to grow and thrive, we must optimize our use of social media and digital marketing – the Marketing Committee and Tony Veroeven should get all of the credit here. They have truly given NAFA new life online. One more minor but significant change has been the format of the Conferences. Here are some examples of changes that have happened over the past few conferences.

Committee meetings were moved to the mornings with breakfast and that has increased participation. Our caliber of speakers has increased significantly with a slightly larger budget and better group of volunteer planners. We have spent more on food and selected better properties for all of our venues. We have decided to no longer pick a hotel primarily based on its proximity to the airport – but also for the amenities it can provide. This is because we understand if people are going to take the time and expense to leave work, then it should be at a place that they want to be. After the awards presentation at the Annual Conference, we selected an offsite venue

for an official “after-party.” This gave us one last opportunity to celebrate with our peers from around the world before leaving the last day. We also made an effort to poll the population and ask for feedback and ideas. One thing that came out of this was an effort to have more round table and interactive components to our agendas. All of these changes and more were intended to keep NAFA from being stagnant and to continue evolving into the future.

In closing, I cherish my time as President, sincerely appreciate all of the support you have given me, and I am proud of the accomplishments that NAFA has made. This organization has always been good – but it is turning great right in front of our eyes. We are blessed to be in an amazing industry providing a required good that is needed universally. Our economy is strong and there is enormous potential for the future. Please continue to be involved as much as you can. Just attending NAFA is not enough. To get the most out of NAFA, you need to live and thrive within NAFA. Network with NAFA members and learn the successes of each other so that we can each strengthen our businesses and our individual markets.

Get involved with committees, writing guidelines, or volunteer to serve on the Board. With your involvement and passion, NAFA will continue to grow and will strengthen the air filtration industry. Our industry is strong and the future looks very bright. Thank you for allowing me to serve you – I leave you in good hands. ■ Sincerely,

Trey Fly NAFA President

NAFA Air Media

Welcome to NAFA!

2019 Board of Directors

Distributor

President

Jeff Higgins Air Filter Sales & Service (NV) Sparks, Nevada Scott J. Abbes Clean Air Solutions LLC Delano, Tennessee Duane Rictor Engineered Equipment Inc. (EEI Oklahoma City, Oklahoma Carlos A. Torres Sanchez, NCT Filtech SA De CV Zapopan, Jalisco Mexico David Dilling Filters4Air, LLC San Antonio, Texas Frank Baker Frank Baker & Associates, LLC Nashville, Tennessee

Professional Individual Robert Dante Verizon Branchburg, New Jersey Kevin Kwong LMS Technologies, Inc. Bloomington, Minnesota

Association Partner Agnes Baha ONe Medicare Sdn Bhd Kuching, Sarawak Malaysia

Affiliate Individual Curtis Czemeres BFC Solutions/Pure Air Sales Nashville, Tennessee

www.nafahq.org

Trey Fly, CAFS, NCT II

Joe W. Fly Co., Inc. 4820 Memphis Street Dallas, TX 75207 214-634-2200 Fax: 214-634-7928 trey@joeflyco.com www.joeflyco.com

President-Elect

Tom Justice, CAFS, NCT Zene 4997 Westmoreland Drive Williamsburg, VA 23188 919-740-6308 justfilter@yahoo.com

Treasurer

Nathan Wittman, CAFS, NCT Filter Technology Company, Inc. 9018-B Scranton Street Houston, TX 77075 800-874-1045 Fax: 713-910-0071 nwittman@filtertexas.com www.filtertexas.com

Secretary

Roberta MacGillivray, CAFS, NCT B.G.E. Services & Supply Ltd. 5711-103 A Street Edmonton, AB T6H2J6 Canada 780-436-6961 Fax: 780-437-2133

robertamacgillivray@thefiltershop.com

www.thefiltershop.com

Immediate Past President Jay Reese, CAFS

12 Shrapley Drive Chadd’s Ford, PA 19317 610-310-0178 jay.reese44@gmail.com

Northeast Region

Timmy Timbs, CAFS

Wallner Expac 6462 Sandbourne West Olive Branch, MS 38654 800.690.0012 Fax: 662.420.7255 ttimbs@expac.com www.expac.com

Southeast Region

Patrick Rosenthal, CAFS

TEX-AIR Filters/Air Relief Technologies 2209-A Rutland Drive Austin, TX 78758 512-833-3330 Fax: 512-833-3335 patrickrosenthal@texairfilters.com www.texairfilters.com

North Central Region

Dave Miller Complete Filter Media 410 South Ewing Street Lancaster, OH 43130 740.217.8831 dave.miller@cfm.email www.cfm.global

South Central Region Matt Solis, CAFS

Smith Filter Corporation 5000 41st St Ct Moline, IL 61265 309.764.8324 Fax: 309.764.6816 matt@smithfilter.com www.smithfilter.com

Northwest Region

Julie Engelstad, CAFS

Fiber Bond Corporation 110 Menke Road Michigan City, IN 46360 219-879-4541 Fax: 219-874-7502 julie.engelstad@fiberbond.net www.fiberbond.net

Southwest Region

Michael Corbat, CAFS

Rensa Filtration 37900 Mound Road Sterling Heights, MI 48310 586.580.7670 Fax: 586.872.0705 mcorbat@rensafiltration.com www.rensafiltration.com

International

Jorge L. Velasco, CAFS, NCT Air Quality de Mexico Encino S/N, Col. El Carmen Queretaro, QRO 76240 Mexico 011 524422215748 jorge.velasco@aqdemexico.com www.aqdemexico.com

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Saving Energy with Efficient Belt Drives

By Jason Industrial Article two in a series of three

The cost of energy in manufacturing has a major effect on overall cost of a product. In fact, energy cost is currently one of the main drivers in reshoring, the growing movement of bringing manufacturing operations back to the United States from offshore locations. By introducing energy efficient belt drives, you can implement a simple, cost-effective solution to achieve energy savings. Proper installation and maintenance combined with the latest drive belt technology can improve efficiency through reduced energy consumption and enhance drive performance.

Regular Maintenance - Synchronous and V-Belt Drives Proper Tensioning - One third of electric motors employed in industrial and commercial applications use belt drives.

The majority of these drives use wrapped (fabric covered) V-belts, relying on the friction between the belt and sheave groove to transmit power. Relatively inexpensive, wrapped V-belts are designed to allow for limited slippage; intended

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to slip only in potentially problematic situations, this slippage prevents damage to expensive driven equipment by acting as a safety fuse. The belt can slip or break rather than damaging the more expensive driven unit.

But without frequent periodic maintenance, these belt drives tend to slip excessively during normal operation and result in reduced efficiency and increased operating costs. A correctly installed wrapped V-belt drive can attain 95-98% efficiency soon after installation, rapidly declining to approximately 93% efficiency during the course of normal operation. Without continued periodic tensioning maintenance, efficiency will decrease even further and components will wear more quickly. Belt drive tensioning maintenance is often neglected due to higher maintenance priorities, meaning belt drives receive attention only when a belt finally breaks. This situation can be avoided by periodically monitoring the tension and adjusting if necessary, increasing the lifespan of belts and reducing the frequency of service interruptions.

Proven Energy Saving Solutions The U.S. Department of Energy recommends replacing V-belts with proven belt drive solutions, including cogged raw edge V-belts and synchronous belts, as best practice for increasing belt drive energy efficiency. Upgrading from a wrapped V-belt to a raw-edge cogged belt yields an average 2% increase in efficiency, a good return for a very low-cost investment. For new drives, using synchronous belts can provide an average 5% efficiency increase compared to V-belts. While increases of 2–5% may seem insignificant, when considering the energy cost savings over multiple drives and longer running times, the savings soon become substantial. The following overview of the available belt options, as well as the pros and cons of each solution, is a useful guide for evaluating and selecting the best belt for the task.

NAFA Air Media

Figure 2. Good: Standard Wrapped V-Belt - Typical Efficiency = up to 93%

Better: Cogged Raw Edge V-Belt – Typical Efficiency = up to 95%

Wrapped v-belt

Cogged raw edge v-belt

The wrapped V-belt is typically the standard belt utilized in many applications. The excellent mechanical characteristics and high transmission efficiency make this type of belt a popular choice.

“Raw Edge” construction differs from wrapped v-belt in that it does not have external fabric on the sides of the belt. This puts rubber in direct contact with the pulley grooves greatly reducing slippage. The cogged raw edge V-belt also has notches cut in the underside for cooler operation and greater flexibility, making it ideally suited for smaller diameter pulleys. More efficient than a wrapped V-belt, it is the best choice where a synchronous drive is not cost-effective but greater efficiency is desired.

Pros The wrapped V-belt will protect the drive from shock loads where torque spikes are present, by allowing some slippage and act as a safety fuse reducing risk of damage to valuable components.

• Any application where some slippage is desirable will be better suited to using a wrapped V-belt.

• A wrapped V-belt offers more protection against contamination as the cover offers protection to the rubber body of the belt.

Cons Among available belt drive options, wrapped V-belts are the least efficient.

• This type of V-belt requires frequent tensioning to maintain its initial efficiency. If not properly maintained on a regular basis, it will lose up to 20% efficiency.

• There is a sharp reduction in efficiency after installation due to slippage, as the V-belt stretches during operation.

• There is a large variation in efficiency between V-belts, on multi-belt drives, tension variation between multiple belts can result in a belt that is not working as hard as the others, therefore impacting overall drive efficiency.

Pros • The cogged or notched construction reduces bending resistance in the belt, so it is able to bend around smaller diameter pulleys than a wrapped V-belt. Smaller pulleys require less material to produce, meaning they are generally cheaper than larger versions.

• The raw edge sidewall construction (meaning no fabric cover) has a greater coefficient of friction than a wrapped V-belt, making it more slip-resistant and allowing it to transmit more power.

• A cogged V-belt runs cooler than a wrapped V-belt, and, as a result, will last longer. The US DoE estimates that this belt type is 2% more efficient than standard V-belts.

• This belt runs on the same pulleys as a standard V-belt, so upgrading is a simple process of changing the belt without incurring the cost of new components.

• Unlike a synchronous belt, a cogged V-belt provides better vibration damping where excessive vibration is a concern.

Cons • Initial cost of raw edge v-belt is higher although return on investment is rapid.

Continued on next page

www.nafahq.org

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Saving Energy with Efficient Belt Drives

Continued from previous page

www.jasonbymegadyne.com Best: Synchronous Belt – Typical Efficiency = Up to 98%

Synchronous Belt Also known as “timing belt”, synchronous belt teeth engage with corresponding pulley teeth. This belt eliminates slippage and provides the highest efficiency. However, it is not a direct replacement for existing v-belt drives as it requires a new drive design that will require all new belts and pulleys.

Pros • The teeth in a synchronous drive create positive engagement with the sprockets for zero belt slippage and maximum efficiency.

• A synchronous belt is the best choice for new drive applications, as the initial cost is offset against the increased efficiency and reduced downtime for maintenance that it offers.

Since 1958, Jason, founded by Jacques Cohenca, has grown to become one of the leading suppliers of industrial rubber products and related hardware in the western hemisphere.

Our business model is simple lean, responsive and being easy to do business with is our corporate culture. We know that your opportunities are determined by quick, decisive action on your part, and we strive to assist you in making those inquiries turn into orders.

Jason Industrial offers a complete range of industrial v-belts, neoprene and urethane synchronous belts, each provided in all English and metric cross-sections or pitches.

• This belt maintains its efficiency over its lifespan, unlike a standard V-belt, which loses efficiency over time.

• This type of drive runs cooler and with less tension than V-belts, which extends the life of both bearings and belts.

• Capable of operating in wet and oily conditions that would hinder a V-belt, a synchronous belt requires only minimal maintenance and re-tensioning.

Cons • Conversion of a v-belt drive to synchronous belt will require both new belts and pulleys, making it a higher initial cost than simply replacing v-belts on a v-belt drive.

• Synchronous belt generates more noise than V-belt.

• A synchronous drive is less suited for applications where some slippage is desirable.

• Alignment and tension is critical as synchronous belt is not as tolerant as a V-belt to misalignment.

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NAFA Air Media

Phoenix, Arizona

NAFA 2020 Technical Seminar | Tuesday, March 31 - Thursday, April 2

Join us in Phoenix - Scottsdale #TECH202 will be held in NAFA's most anticipated location - Phoenix - Scottsdale.

Get ready for educational opportunies and professional developement.

All levels of professionals, from "old-hands" to "newbies" - business owners to technicianst in the air filtration industry will benefit form learning about the latest in the HVAC topics.

There is tons to do in Phoenix-Scottsdale, making it the #1 requested destination from NAFA members, from golfing and hiking to dining and arts, they have it all.

The program for the Technical Seminar will be available soon, but mark your calendar for March 31 - April 2!

Be on the lookout for 2020 Sponsorship Opportunities!

For more information: www.nafahq.org

The Grand Canyon State

2019 NAFA Foundation Scholarship recipients The NAFA Scholarship helps make the dream of a college education a reality for the winners. We encourage all NAFA members and their employees to become involved in the scholarship competition. Do you know of someone who would benefit from the NAFA Scholarship? Download an applications for 2020 now!

Andria Diduck

Kayla Harding

Major: French Daughter of Anne Diduck BGE Indoor Air Quality Solutions Ltd.

Major: Civil Engineering Sister of Shannon Kerns Fiber Bond Corporation

Andria, an aspiring teacher, is a second year student at Concordia University of Edmonton, majoring in French and minoring in math.

Her educational goal was borne out of her desire to create a positive learning environment and share a love of education.

Returning to her home, Andria continues to volunteer her time tutoring and helping out with local home town event.

Andria is an incredible person and passionate about her pursuit of education and her desire to help educate others. She is invested in the success of her students and helps set goals for the student whether it is to be prepared for a series of exams, to master a particularly challenging concept, or to attain a certain grade. With a teaching style that is supportive, patient and encouraging, Andria will be a favorite among her students.

Driving Kayla's pursuit of a Civil Engineering degree at Rose-Hulman Institute of Technology was seeing the positive real-life effects that the discipline had on a relative with Cerebral Palsy, as well as an older sister who is established in the field.

Of her many volunteer activities, her time with Big Sisters has been the most impactful. Her "Little Sister" taught her to appreciate the many blessings she has been given. Other pastimes include conducting free volleyball clinics and acting as camp counselor at Camp Rave.

Balancing a tough academic load, commitments to athletics and her work with nonprofit organizations, Kayla has the compassion, dedication and leadership to make her personally as well as professionally succeed.

Dear NAFA, I would like to thank you most sincerely for your generosity granting me the NAFA scholarship for 2019. I am honored to be the recipient of this award.

As I complete my Education Degree at Concordia University of Edmonton, this scholarship enables me to focus on my studies and helps in reducing costs. Thank you again for your support.

Sincerely, Andria Diduck

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Dear NAFA, I am so very thankful and honored to have been selected for the scholarship, which will help pay for my tuition at Rose-Hulman Institute of Technology, to fulfill my goal in becoming a civil engineer and helping my community.

Sincerely, Kayla Harding â–

NAFA Air Media

INTRODUCING The New & Improved PreFilter Clips. Extends the Life of High Efficiency V-Bank Filters*

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Engineered spring-loaded “SureGrip” feature pushes into the open slots on the top and bottom of the plastic V-Bank filter header.

Designed to pre-filter plastic High Efficiency V-Bank filters with a 2” or 4” pleated Beverage board or plastic-framed air filter. Unique (Long Nose) feature can accommodate different air filter width variations.

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2019-2021 Strategy

FOCUS AREAS & GOALS Membership

97% Annual retention rate among

Certification

current member companies (manufacturer, distributor, supplemental)

Campaign to win back 20% of total CAFS 40% of total NCT not recertified by 2020

15% Win back rate among recently

Grow

departed members (those that have left within 12 calendar months)

10% Win back rate

among former members (those that left longer than 12 calendar months ago)

5% New growth annually

Financial

Increase NAFA revenue Maintain NAFA reserves Tie management fees to NAFA strategic goals

CAFS by 5% and NCT by 10% each year

Annual book sales equal to 30% of current CAFS and NCT - Investigate online subscription option Easy automated recertification process – Email notification, online test Analyze fee structure for new and recertificationand member vs non-member - Consider $0 NCT recertification Honorary auto renewal for life after a certain number of consecutive years of CAFS/NCT

Education

Determine the right mix of education offerings to meet member needs and provide recommendation by September 2019

Increase attendance at the Annual Convention and Technical Seminar by

5% growth per year

Manufacturing Forward

Permanent Solution in Air Conditioning Systems and Industrial Processes High Surface Area High Efficiency Light Frame Incinerable

4921 Ohio Street, Michigan City, IN 46360 USA info@mikroporamerica.com

+1 219 878 15 50 www.mikroporamerica.com

EXPANDING SOLUTIONS FOR A HEALTHIER ENVIRONMENT

Throughout the years, Wallner Expac has partnered with filter manufacturers to supply them with expanded metal for residential, commercial, and industrial applications. We provide strong and sustainable solutions that help deliver optimal air quality, contributing to a healthier environment.  Founder and leading manufacturer of  expanded metal used in pleated filters.

Expanded Metals Designed and Manufactured by

 Developers of X-Mesh®, the patented  industry standard in filter media backing.  U.S. Patent 8,696,781  Post-production services include conicals,  corrugation, powder coating, and more.

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 Fully customizable specifications to achieve  open area and breach test requirements.

NAFA News MANN+HUMMEL Completes Acquisition of Hardy Filtration

MANN+HUMMEL and Hardy Filtration signing (L-R) Graham MacDonald, Vice President & General Manager, Tri-Dim Canada; Geneviève Hardy, Vice President of Operations, Tri-Dim Hardy; Luc Girard, Vice President of Sales, Tri-Dim Hardy

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MANN+HUMMEL today announced it has finalized the acquisition of Hardy Filtration, a Canada-based air filtration company. “We are committed to expanding in the air and water filtration industries, and we are excited to announce the addition of the Hardy team less than a year after the successful addition of Tri-Dim Filter Corporation to our group,” said Sean Cromie, President & General Manager of MANN+HUMMEL’s Life Sciences & Environment business unit. “...We are very excited with the Hardy acquisition to be able to announce this new center

of Canadian manufacturing operations in Quebec and look forward to enabling our combined teams to succeed together. We consider French speaking Canada an especially important area for further growth and can now ensure it gets the dedicated focus it needs.”

Headquartered in Trois Rivières, Quebec, Canada, Hardy is a privately-held air filtration company with over 80 employees. Hardy Filtration is a provider of a fullline of HVAC filtration products and services, dust collectors, compressed air treatment systems and residential filters. ■

NAFA Air Media

New Certified Personnel NCT Rodney Alberts, NCT Regina Police Service Belle Plaine, Saskatchewan Canada Bryan Archibald, NCT The University of British Columbia Vancouver, BC Canada Sean Ballantine, NCT Oxford Properties Toronto, ON Canada Jason Blum, NCT Oxford Properties Toronto, ON Canada Steven Broudy, NCT Engineered Equipment Inc. (EEI) Oklahoma City, Oklahoma Russel Bruce, NCT BFC Solutions/Pure Air Sales Tallahassee, Florida William Busby, NCT Cypress Health Region / Saskatchewan Health Authority Leader, Saskatchewan Canada Mike Finan,, NCT City of Prince Albert Prince Albert, Saskatchewan Canada Edward Gainsborough, NCT Filter Services, Inc. Elk Grove Village, Illinois

Kevin Guelker, NCT Filter Service of St. Louis St. Charles, Missouri Kevin Hill, NCT City of Prince Albert Prince Albert, Saskatchewan Canada Neil Holohan, NCT Cypress Health Region / Saskatchewan Health Authority Leader, Saskatchewan Canada Shawn Kenney, NCT The University of British Columbia Vancouver, British Colombia Canada Rob Lighthart, NCT The Filter Shop Omaha, Nebraska Mark Lindsay, NCT The University of British Columbia Vancouver, British Colombia Canada Zachary Loveall, NCT Multicare Deaconess Spokane, Washington S. Bevan Luther, NCT McCor Management Regina, Saskatchewan Canada Shaun MacDonald, NCT The University of British Columbia Vancouver, British Colombia Canada Randip Manhas, NCT The University of British Columbia Vancouver, British Colombia Canada Landis Mathiason, NCT City of Prince Albert Prince Albert, Saskatchewan Canada Fraeser McAllister, NCT Oxford Properties Newmarket, Ontario Canada James McConnell, NCT BFC Solutions/Pure Air Sales Bradenton, Florida

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NAFA Air Media

New Certified Personnel Continued from previous page

Lee McCormick, NCT The University of British Columbia Vancouver, British Colombia Canada

Simon Steffens, NCT Filter Service of St. Louis St. Peters, Missouri

Rod McKay, NCT City of Prince Albert Prince Albert, Saskatchewan Canada

Darren Ullrich, NCT Regina Police Service White City, Saskatchewan Canada

Edwin Mendoza, NCT Cadillac Fairview Richmond, British Colombia Canada

Jason White, NCT The University of British Columbia North Vancouver, British Colombia Canada

Evern Mills, NCT Oxford Properties Toronto, Ontario Canada

Shane Whittaker, NCT The University of British Columbia Vancouver, British Colombia Canada

Brad Niels, NCT Saskatchewan Central Regina, Saskatchewan Canada

Jason Wright, NCT The University of British Columbia West Vancouver, British Colombia Canada

James Pollock, NCT McCor Management Balgonie, Saskatchewan Canada Andrew Porritt, NCT The University of British Columbia Vancouver, British Colombia Canada Amrit Rai, NCT Cadillac Fairview Richmond, British Colombia Canada Duane Richter, NCT McCor Management Regina, Saskatchewan Canada Allan Sabuda, NCT City of Prince Albert Prince Albert, Saskatchewan Canada Malcolm Simon, NCT Oxford Properties Toronto, Ontario Canada Manmit Singh, NCT Oxford Properties Toronto, Ontario Canada Manuel Stefan, NCT The University of British Columbia Port Coquitlam, British Colombia Canada

www.nafahq.org

NCT II Phil Dugan, NCT II Air Filter Superstore, LLC. Boise, Idaho Kasey Harpold, NCT II Filter Services of Indiana, Inc. Indianapolis, Indiana John Hodges, NCT II Universal Filters of Louisiana Baton Rouge, Louisiana Darrin Jones, CAFS, NCT II Universal Filters of Louisiana Baton Rouge, Louisiana Denny Lucey, CAFS, NCT II Air Filter Superstore, LLC. Boise, Idaho Cody Mitchell, CAFS, NCT II Air Filter Superstore, LLC. Boise, Idaho Tommy Mogabgab, NCT II Bruce Air Filter Charlotte, North Carolina Matt Shedor, NCT II Air Filter Engineers, Inc. Carol Stream, Illinois â–

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Pricing Strategy - The “Iceberg” of Every Business

By Paul Hunt, MBA, President, Pricing Solutions

I call pricing strategy the “iceberg” of a business. The iceberg analogy conjures up images of ships going down in the night and polar bears drifting in the Atlantic.

But I’m not talking about a Hollywood blockbuster or National Geographic documentary.

I’m talking about the highly leveraged effect that top line pricing strategy has on the bottom line of a company.

Pricing Math and the Magical Shrinking Earnings Problem

As I’ve discussed before, experience across thousands of companies shows that changes in price impact EBITDA by an average of 10-12X. That means every 2% change in a company’s pricing without a volume change normally yields a 25% change in EBITDA. (These numbers can vary, but for traditional companies like retailers, manufacturers, large professional service firms, etc. the variance is fairly minimal.)

Let’s take a look at this shrinking earnings problem in action at a fictitious aftermarket auto parts manufacturer with $240 million in annual sales.

Here is what happens in a typical customer deal: List Price of shipment = $10,000 LESS: 15% volume discount = -$1,500 Discounted Price = $8,500 LESS: Cost of Goods Sold = -$6,000 Gross Margin = $2,500 LESS: Operating Expenses = $1,500 Operating Income of this shipment = $1,000 Operating Margin of this shipment = 11.8% On first glance, an operating margin of 11.8% appears moderately healthy compared to market comps.

But is the company's pricing strategy truly optimal? Or is management leaving significant value on the table without knowing it and short-changing the shareholders?

To know if price is optimized we need to do two things: Step 1: Analyze top-line pricing of this product across the firm’s customers (and the industry if the data is available)

In this step we analyze whether pricing is consistent and fair across similar customers buying similar products at similar volumes. Our goal is to discover if there is pricing integrity across similar accounts, and if not, any opportunities to increase effective price to generate greater profits.

As shown in below graph, analyzing a sample of transactions for this product in the same volume range and geographic area uncovered an opportunity. The volume-discounted price of this transaction was $85 per unit (blue line).

In this sample there were 5 transactions below $85 and 17 transactions above $85 averaging $87.45 per unit (green line).

By increasing price by $2.45 per unit (+2.9%) to more closely reflect fair market pricing, the company would gain an additional $245 in operating profit.

Step 2: Drill down and look for hidden pricing opportunities These indicate pricing changes that can be made to the firm’s commercial strategy which can yield multiples of value. When we analyze this transaction we find the following pricing opportunities:

Price per Unit vs.

Unit Volume

Price per unit

Price per unit

Unit Volume

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NAFA Air Media

Cost of Goods Sold: • •

Rush Order = $250 Last minute change order = $100

These two hidden costs have reduced the operating profit for this transaction by $350.

Unnecessary rush orders can be eliminated by improved scheduling or constraining Sales from “throwing it in for no charge”. Alternatively, the customer can be charged an additional rush order fee.

Likewise, any last minute change orders can be prevented or up-charged.

We have found that customers are generally willing to pay rush order charges if speed of delivery is essential to their business at that point in time. For example, if their production line will be forced to go idle otherwise. If not, customers tend to avoid the additional cost and accept a lessurgent delivery.

If a sudden change order is necessary to their business, customers typically accept the additional change order fee.

Otherwise, they will stick with the original order. Accepting last-minute change orders without passing the additional cost on to the customer can, therefore, be eliminated.

By charging for or eliminating these two hidden costs, the company would earn an additional $350 profit on this transaction and all future similar transactions.

The “Iceberg Effect” In Action

Let’s add up the numbers we get from optimizing pricing on this transaction.

2.9% Increase in top-line Price per Unit = $8,500 + ($2.45 x 100 units) = $8,745 Reduction in Cost of Goods Sold: $6,000 $350 = $5,650 Increase in Operating Income: $1,000 + $595 = $1,595 New Operating Margin of this shipment = 18.2% As you can see, a 2.9% increase in unit

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price and $350 change in hidden costs created an additional $595 in operating profit on one shipment alone.

Operating margin rose from 11.8% to 18.2%. Optimizing top-line pricing increased operating margin by 24.5%.

Eliminating hidden costs was responsible for another 35% increase.

Cascading these pricing strategy improvements across all of the company’s commercial activity has a substantial potential cumulative effect on the cash flows and valuation of the firm: • Revenue increases 2.9% from $240 to $247 million • Cost of Goods Sold decreases 5.8% from $169.4 to $159.5 million • Gross Margin increases 23.9% from $70.6 to $87.4 million • Operating Expenses stay the same • Operating Income increases 59.7% from $28.2 to $45.1 million Assuming a 10X EBITDA multiplier in this simple example, the potential value of the firm would increase from $282 million to $451 million. We are not saying companies will capture this amount every time they undertake a Pricing Transformation, but we can say with confidence that PE firms can reliably realize a substantial improvement to business value by undergoing a pricing strategy transformation. The key is to uncover the “iceberg” and take appropriate measures to extract this value.

To learn more about implementing a world-class pricing program for your company or private equity investments, feel free to contact Paul Hunt at 416- 9430505 x 121 (Eastern time) or phunt@ pricingsolutions.com.knowledge. All of which gave the company an edge over their competition. ■

Paul Hunt, MBA President Pricing Solutions Our Keynote Presenter for the 2019 Annual Convention in Montreal, Paul Hunt founded Pricing Solutions in 1993 and has specialized in pricing for more than 20 years. During that time he has had the pleasure of working with leading companies on a global basis.

As a pricing strategist, Paul has developed a vast array of proprietary methodologies that go straight to the heart of the problem. He has helped clients with such pricing issues as: bundling/unbundling, competitive pricing, customer categorization, newproduct pricing, perceived value, price complexity vs. simplification, pricing policy, price structure, price wars, price/volume relationship, and valueadded pricing.

Paul has a particular interest in helping companies implement the cultural changes necessary for them to become more effective value-based pricers. In this capacity, he has helped companies make significant changes that have led to substantial bottomline improvements.

Paul also does a great deal of lecturing and writing on pricing strategy. He regularly conducts inhouse training for corporate clients, speaks at industry conferences and works with leading MBA Programs.

Paul has also written articles for leading publications and associations such as Marketing Magazine, American Marketing Association, Marketing Research Industry Association and the Professional Pricing Society.

17

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NAFA 2018 Annual Convention Lake Tahoe, Nevada | September 27 - 29

Trey Fly, CAFS, NCT II, outgoing President, and Roberta MacGillivray, CAFS, NCT, presided over the 2019 Annual Convention. Over 150 people joined us in Montreal for an event filled with networking, education and fun!

Educational topics included sessions on transforming profitability through improved pricing, global economic trends and their implications, new ways to think, lead and achieve and panel discussions on the history of air filtration and the filtration and IAQ in indoor grow facilities.

Jeff Holt, CAFS, NCT and Tom Ryan hosted the 2019 NAFA Foundation Golf Tournament held at Club de Golf de I'ile de Montreal, with over 40 NAFA golfers to raise funds for the NAFA Foundation.

A record breaking 42 companies were recognized at the Awards Banquet for achieving a Clean Air Award (see page 33 for a full list of recipients). Two of our recipients were presented their awards in person - Jason Wright, NCT, University of British Columbia Building Operations – Pharmaceutical Sciences Building and Paul Tisch, SSC – Texas A&M University.

20

Other award winners honored at the banquet included NAFA Association Coordinator, Terry Driscoll, awarded the Distinguished Service Award for her longstanding service and commitment to the organization and everything she’s done to advance both NAFA and the air filtration industry. Dorothy Sutton accepted the NAFA Hall of Fame Award on behalf of her late husband Darrel Sutton, BGE Indoor Air Quality Solutions Ltd. Darrel was a long-time fixture in our industry and if he were here today, he would say that he credits a great deal of BGE’s success to the NAFA organization. Darrel believed in the values of NAFA: expertise, education and best practices, and he used those to build a very successful business.

Thank you to all our attendees and sponsors for another successful conference. We can’t wait to see you at the 2020 Technical Seminar, March 31-April 2, in Phoenix, Arizona! ■

NAFA Air Media

Continued on next page

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21

Continued from previous page

Thank you 2019 sponsors!

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2020 AHR Expo | February 3 - 5 in Orlando, Florida NAFA Member AAF Flanders ADS Laminaire / Flow Air Filters Air Filters, Inc. American Metal Filter Company Century Mechanical Systems Factory, LLC / CMS Global CFM Global Clean and Science Co. Ltd. Columbus Industries, Inc. Flow Air Filters / ADS Laminaire Fresh-Aire UV Glasfloss Industries Hydrosil International Limited Jason Industrial Koch Filter Mikropor National Air Filtration Association (NAFA) Parker Hannifin Research Products Corporation Sanuvox Technologies Inc. Specialty Filter UV Resources

Booth Number 3211 204 5687 3793 6690 6184 2481 4343 204 5853 3671 7355 4782 3801 5390 4849 2525 3613 4774 9210 4760

Hotel Information NAFA has reserved a hotel block at the Embassy Suites Orlando – Lake Buena Vista, 8100 Lake Street, Orlando, FL 32836.

• Complete this hotel reservation form: https://tinyurl.com/NAFA2020AHRHotel • Room Rate: $204 + tax for single/double • Shuttle service between the hotel and the event is provided NAFA Member Booths If you have a booth at the 2020 AHR Expo, be sure to let us know by sending an email to nafa@nafahq.org.

Booth Volunteers needed We need member volunteers to staff the NAFA booth (4849) at the expo. All volunteers will receive an exhibitor badge and earn 2 CEUs towards their certification.

For more information on the AHR Expo: https://tinyurl.com/NAFA2020AHRExpo. ■

The AHR Expo is the world’s largest HVACR event. Since 1930, the Show has provided a unique forum for the entire HVACR industry to discover the latest products, learn about new technologies and develop mutually beneficial business relationships. For more information, visit ahrexpo.com and follow @ahrexpo on Twitter.

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Industry Calendar 2019 AFS 2019 Fall Conference September 26 Cleveland, Ohio AMCA Annual Meeting October 2 - 6 Maui, Hawaii SMACNA Annual Convention October 20 - 23 Austin, Texas AHRI Annual Meeting November 10 - 12 Rio Grande, Puerto Rico

2020 AHR Expo February 3 - 5 Orlando, Florida IAQA Annual Meeting & Expo February 19 - 21 West Palm Beach, Florida FiltXPO and Conference See NAFA at Booth 413 February 26 - 28 Chicago, Illiois NAFA Technical Seminar March 31 - April 2 Phoenix, Arizona Expo Frio Calor Argentina 2020 May 13 - 15 Santiago, Chile AHRI Spring Meeting May 18 - 20 Washington, D.C. 2020 ASHRAE Annual Conference June 27 - July 1 Austin, Texas AHR Mexico September 22 - 24 Monterrey, Nuevo Leon, Mexico

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NAFA Air Media

Technology Corner Powered by Permatron Corporation

RESOLVING A FOULING ISSUE FOR A WIND TURBINE MANUFACTURER BACKGROUND The company involved in this case study is a multi-national manufacturer of wind turbines that meets the needs of alternative energy production worldwide. Despite having the turbines installed in the ideal location, seasonal conditions brought upon a unique set of issues that required technical support to resolve. Total Filtration Services partnered with Permatron to resolve their concerns with a simple but effective filtration solution.

RESULTS TFS, working with one of its trusted manufacturing partners, Permatron, proposed the installation of their PreVent® System screens at the inlets to their turbine’s impeller enclosures.

The PreVent technology incorporates an electrostatically-charged material that enables the attraction/capture of airborne particles much smaller than the mesh size of the screen while having a negligible effect on air flow.

TFS worked with the customer to best identify those locations that might see the best use of these filters and helped to specify the correct size and model of PreVent screens.

“Seasonal conditions & environmental elements can lead to air intake fouling of critical electronic components.”

Henry Frank TERRITORY MANAGER Total Filtration Services

The most obvious benefit discovered by the customer after installation of PreVent screens was the reduction of alarm events due to seasonal pollen issues. In fact, even those areas with daily alarms saw zero alarms after installation.

CHALLENGES The customer had installed a base of turbines in areas that are often flat and sparsely inhabited. As it turns out, these optimal conditions often occur in farmlands. In those areas where corn fields are nearby, seasonal conditions can lead to corn pollen entering the turbine compartment and fouling the impeller. This fouling impacts the speed and efficiency of the turbine’s rotational energy leading which in turn, triggers an alarm on that particular unit.

The customer experienced not only a reduction in the labor/time spent on addressing these daily occurrences, but increased energy conversion as the pollen no longer impacted the efficiency of the turbine’s impellers.

As the PreVent screens are washable/ reusable, the customer now incorporates these filters on most new installations as a standard practice. The PreVent System is UV protected for indoor or outdoor use, and available with multiple mounting options.

A simple and effective product like the PreVent System for air The previous solution to this challenge intake protection will help preserve required the owner of that unit to equipment, and make costly cleaning send a technician to the location to downtime a thing of the past. clean the unit. This entailed traveling to the often-remote location, climbing the tower to enter the unit, cleaning the foulant and then resetting the alarm.

In several cases, during the peak pollination season, this was a daily occurrence.

PreVent filters are a simple solution, affixed to the outside of an air intake, for easy access and fast maintenance.

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© 2019 Permatron Corporation.

NAFA's first NCT Level II testing and training class Elk Grove Village, Illinois The June 2019 NCT Level II testing and training class was hosted by Filter Services Inc., Elk Grove Village, Illinois. This new location will allow NAFA to host bi-annual NCT II training courses in a convenient and easy to get to location. At the first class, Gen Moore, CAFS, NCT, Camfil USA provided hands-on training to ten attendees. Congratulations to the newest NCT IIs: Phil Dugan, NCT II; Danny Gutierrez, NCT II; Kasey Harpold, NCT II; John Hodges NCT II; Micah Jones, CAFS, NCT II; Denny Lucey, CAFS, NCT II; Cody Mitchell, CAFS, NCT II; Tommy Mogabgab, NCT II; Matt Shedor NCT II; Juan Villagran, NCT II!

Bag in / bag out training materials were sponsorsed in part by:

32

NAFA Air Media

NAFA announces 42 Clean Air Award recipients for 2019

The National Air Filtration Association has announced its recipients of the Clean Air Awards for 2019. The Clean Air Award is presented each year to the building owners and managers who take steps to significantly improve the quality of their indoor air by increasing the level or efficiency of their HVAC air filtration system in 10 specific categories.

Candidates are nominated for the award by both NAFA members and members of the facility management community, and must submit detailed and specific steps taken toward cleaning the indoor environment through “best air filtration practices” and system hygiene. A NAFA Certified Air Filter Specialist confirms these improvements. Nominees are judged by the NAFA Clean Air Award Committee and each recipient receives a custom-designed award, building signage and recognition for their efforts.

Award-winning buildings must maintain IAQ diligence and submit inspection data each year in order to maintain the NAFA Clean Air Award. 2019 facilities that utilize best air filtration practices in their buildings: 222 Exhibition Street, Melbourne Submitted by: Jason D. Burgess, CAFS Independent Filter Service P/L

Kellogg’s de México, Queretaro Plant Submitted by: Mario Jehu Parra Rodriguez, NCT Air Quality de Mexico

Roslyn Building Submitted by: Sharon Needham, CAFS, NCT BGE Indoor Air Quality Solutions Ltd.

222 Lonsdale Street, Melbourne Submitted by: Jason D. Burgess, CAFS Independent Filter Service P/L

Leader and District Integrated Health Facility Submitted by: Scot Johnson, CAFS, NCT BGE Indoor Air Quality Solutions Ltd.

441 Fifth Submitted by: Sharon Needham, CAFS, NCT BGE Indoor Air Quality Solutions Ltd.

Lexington Realty Trust JLL Americas Gateway Plaza Submitted by: Greg Hite, CAFS Virginia Filters and Supply

Shell Scotford - Security Administration & Control (SAC) Building Submitted by: Brian Worsdall, CAFS BGE Indoor Air Quality Solutions Ltd.

Alfred Jenkins Field House Submitted by: Scot Johnson, CAFS, NCT BGE Indoor Air Quality Solutions Ltd. Altius Centre Submitted by: Michael Gerald, CAFS, NCT BGE Indoor Air Quality Solutions Ltd. Bank of Canada Building (McCOR Mgmt) Submitted by: Scot Johnson, CAFS, NCT BGE Indoor Air Quality Solutions Ltd. Bimbo Bakeries USA, Inc. (BBUSA) Submitted by: Anthony Thomas, CAFS TEX-AIR Filters/Air Relief Technologies Brookfield Place Submitted by: Sharon Needham, CAFS, NCT BGE Indoor Air Quality Solutions Ltd. Cadillac Fairview – Richmond Centre Submitted by: Ray Riopel, CAFS B. C. Air Filter, Ltd. Engineering G University of Calgary Submitted by: Sharon Needham, CAFS, NCT BGE Indoor Air Quality Solutions Ltd. Fourth and Fourth Submitted by: Sharon Needham, CAFS, NCT BGE Indoor Air Quality Solutions Ltd. Hospital Infantil Teleton de Oncologia, Queretaro Submitted by: Mario Jehu Parra Rodriguez, NCT Air Quality de Mexico

www.nafahq.org

South Broad Plaza (McCOR Mgmt) Submitted by: Scot Johnson, CAFS, NCT BGE Indoor Air Quality Solutions Ltd.

Licking Memorial Hospital Submitted by: Chris Zaker, CAFS, NCT Filter Technology

Spire Realty Group - Centre Plaza Submitted by: Nathan Wittman, CAFS, NCT Filter Technology Company, Inc.

McKinney & Olive Submitted by: Benny Aycoth, CAFS TEX-AIR Filters/Air Relief Technologies

Spire Realty Group – Lockhill Crossing Submitted by: Nathan Wittman, CAFS, NCT Filter Technology Company, Inc.

Mechanical Engineering University of Calgary Submitted by: Sharon Needham, CAFS, NCT BGE Indoor Air Quality Solutions Ltd

SSC – Texas A&M University Submitted by: Joe “Steve” Collum, CAFS Joe W. Fly Co., Inc.

MIT Lincoln Laboratory Submitted by: Daniel Shea, CAFS Air Filter Sales, Inc. NCO Building (McCOR Mgmt) Submitted by: Scot Johnson, CAFS, NCT BGE Indoor Air Quality Solutions Ltd. NYPRO Submitted by: Daniel Shea, CAFS Air Filter Sales, Inc. Portales Corporate Center I & II Submitted by: Jim Ward, CAFS Dave Downing & Associates Regina Police Services Submitted by: Scot Johnson, CAFS, NCT BGE Indoor Air Quality Solutions Ltd. Richardson Centre Limited Submitted by: James Fast, CAFS BGE Indoor Air Quality Solutions Ltd.

UBC Building Operations Pharmaceutical Sciences Building Submitted by: Brad Behiel, CAFS, NCT FilterPro Services Canada, Ltd. University of Alberta Submitted by: Guy Chauvet, CAFS BGE Indoor Air Quality Solutions Ltd. • Corbett (E.A.) Hall • School of Business • Humanities Centre • Donadeo Innovation Centre for Engineering • Materials Management Building • Medical Sciences Building • Rutherford Library North • University Hall • University Terrace • Zeidler Ledcor Centre Verizon Wireless Network Equipment Center – Branchburg, NJ Submitted by: Robert Dante Verizon

33

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NAFA Guidelines update

The NAFA Guidelines Committee will now feature a new NAFA Guideline each month in the Filter Advisor newsletter and they have added a “suggest a new guideline page.” Check out all our guidelines here: https://www.nafahq.org/nafa-best-practice-guidelines/.

NAFA publishes a series of air filtration best practice guidelines based on these industry codes, but that go further to recommend and incorporate the “highest level of air filtration standards” for specific applications. NAFA currently offers the below guidelines which are available on the our website. 

!

New

Airborne Infections Containment

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Molecular Filtration

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Schools

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Spray Finishing Particulate

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Bulk up your writing skills!

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36

NAFA Air Media

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From the Executive Director

by Michelle Czosek, CAE

Keeping it Simple “AMFCO’s growth in the last ten years is a direct result of its participation in NAFA. The people I met at my first NAFA meeting in 2009 are considered friends today. Some have become customers, but many others have helped me network and grow my business in ways that I couldn’t do myself.”

When I read this quote from Brandon Deilgat, CAFS, Director of Sales at American Metal Filter Company in the last issue of Air Media, it struck me that it pretty much sums up what every association executive director wants to hear about the organization they serve.

Every day I look for ways that myself and the other NAFA staff members can directly impact the way we serve our members that will, in turn, impact the way you serve your customers and grow your businesses.

I recently attended an event called Solutions Day which was comprised of sessions led by both association executives and our industry supplier partners. Quality education combined with networking opportunities will grow relationships with my peers that will lead to exactly what Brandon said above. The organizers challenged us to think about what we would do differently tomorrow as a result of what was learned at the event. It helped me focus on what I heard that I could take back and apply directly to NAFA. One presentation that hit home focused on making things simple for our customers. There was discussion of improving the purchase pathway for customers and simplifying customer decisions to increase the likelihood of a purchase. In order to do this, there needs to be some rethinking of strategies, capabilities and customer expectations. There are so many companies that we can look to for models of simplicity – think Costco, Netflix, Amazon, etc. – to imitate.

When I review the 2019-2021 NAFA Strategic Plan (see page 10), I appreciate the simplicity of a plan

40

that went from 6 pages to a one-page overview that shows exactly what NAFA hopes to achieve as we move forward.

The area of certification has several items that will lead to easier ways for individuals to earn their CAFS, NCT or NCT II – all without eroding the value or credibility of the certification itself. In fact, at the board meeting in Montreal it was decided that between the next Technical Seminar and Annual Convention, we’ll take the success of our June 2019 NCT II training and exam to the next level by offering the CAFS and NCT exams in the Chicago area at the same time.

With another NAFA Annual Convention wrapped up, it’s time to focus on 2020 and a new NAFA membership year. As I say every year, I hope when you receive your dues renewal, you’ll take a moment to reflect on what you’ve received from your membership in NAFA as well as what you’ve given back.

NAFA is your organization so let us know what you want to see in 2020 and what NAFA can provide that will give you even more return on your membership investment.

Consider not only what you need from us, but how you can get engaged in 2020.

Please feel free to contact me or any NAFA staff member with questions or suggestions. We’d love to hear from you! ■ Best, Michelle Czosek, CAE

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