|
Honeywell looks to air-quality trend for healthier
profits
|
Dee DePass, Star Tribune
|
|
|
|
Published October 16, 2003
|
|
Looking to ride what it hopes will be a movement toward
designing "healthier" houses, Honeywell's homes
division in Golden Valley has signed an exclusive three-year
partnership with the American Lung Association to educate
2,200 home builders and heating contractors about devices that
can zap mold, kill bacteria and filter pollutants from indoor
air.
The national initiative links Honeywell to the Lung
Association's Health House program, a 10-year-old effort that
promotes techniques to improve indoor air quality and benefit
asthma and allergy sufferers. If it's successful, the program
should boost sales for some of Honeywell's higher-margin home
products.
Honeywell and the Lung Association will host air-quality
workshops for home builders in 50 cities nationwide, including
sessions in St. Paul set for Dec. 8-9. Lung Association
officials hope to see 1,000 association-approved houses built
next year in Minnesota, the equivalent of 8 percent of the new
home market. Working by itself, the Lung Association has
overseen the creation of 30 such houses in Minnesota so far,
but Honeywell's participation means the initiative can reach a
broader audience, since Honeywell is underwriting the entire
cost and covering the Lung Association's expenses.
Honeywell's round thermostats
Glen Stubbe
Star Tribune
Health House technical director Steve Klossner is convinced
the market is ready, despite the extra cost -- generally
$3,000 to $6,000 -- to make a home comply with the Lung
Association standards.
"Honeywell offers us a great opportunity to get there
because of their training. They are really big on training,
and not just about their products. . . . That's the reason we
chose them," he said.
The workshops teach building methods that help prevent dust
mites, mold, leaky windows and wet basements, and warn against
using certain paints, carpets and furnishings that release
potentially harmful fumes. Contractors also learn how health
problems can develop when indoor air is not properly
ventilated, humidified or filtered, said Honeywell Health
Solutions business development leader Tim Kensok.
Officials would not disclose exact sales for Honeywell's
line of "whole house" air-quality products but said
industrywide sales of portable and installed systems is about
$800 million when builders costs are factored in.
Last year, Freedonia Group Research estimated that
Honeywell controls 36 percent of a wider category of various
home controls and products. If Honeywell controlled about a
third of the whole-house indoor air-quality market, then its
sales could be near $260 million, analysts said. Other major
players are Venmar Ventilation, Research Products, Broan and
Carrier United Technologies.
If Honeywell can ignite more sales, it would boost the
company's home-and building-control products and services,
which has estimated sales of $4.1 billion, down from $4.3
billion in 2002, analysts said.
Mark Winston, vice president of Honeywell's North American
Homes operation, expects a "significant" increase in
demand for homes certified to meet the Lung Association's
air-quality standards.
Including temperature control and zoning products,
"Right now it's a $2.8 billion [industry]. And we think
that . . . the potential available market could be double for
residential consumers," Winston said. "We already
know that 50 percent of all family homes are directly impacted
with allergies and asthma."
The products most likely to benefit from the Lung
Association partnership include Honeywell's whole-house air
filtration and ventilation systems, built-in humidifiers,
zoned temperature controls and ultraviolet lights that kill
bacteria in furnace ducts.
Sales of Honeywell's indoor air-quality products have grown
roughly 11 percent for each of the past three years, Kensok
said. The Morris Township, N.J.-based company, which formerly
was based in Minneapolis and is best known for its home
thermostats, recently began co-branding its products with the
Lung Association to capitalize on the connection.
Inside Honeywell's Golden Valley plant, more than 800
filtration systems designed to remove 30 percent of all
harmful particles in the air roll off the conveyor belts each
day. The plant also is producing advanced systems that use
layers of electrically charged plates to attract 70 percent of
the particles from the air, Winston said. Both systems now
sell at the same rate, but sales of the more advanced filters
should pick up if more buyers insist on Lung
Association-standard homes.
Jeff Schoenwetter, owner of JMS Homes and treasurer of the
Builders Association of Minnesota, is a skeptic about
Honeywell's decision to try to spur demand through contractors
rather than going directly to home buyers.
"I am not in Las Vegas making odds, but I've got to
tell you my money didn't bet that way. . . . It's not the
builders and contractors that drive the consumers' decisions.
It's the consumers who tell us what they want."
Randy Imke, president of Flare Heating and Air Conditioning
in Golden Valley, agreed, saying that only homeowners with
certain medical conditions or a bad experience in a previous
home will spend the extra money to address indoor air quality.
Paul Nisbet, an analyst with JSA Research, a Newport,
R.I.-based firm that tracks Honeywell and other manufacturers
with defense divisions, views Honeywell's goals as
"pretty ambitious," adding that "they will do
well to meet them."
Klossner said the Lung Association was impressed by
Honeywell's preparations for the Health House program.
"Honeywell came to the table with the most awesome
training schedules," he said. "They offer training
to builders not just on their equipment. They don't just try
to sell it to builders. They train on window installation,
foundations, durability and energy and bring them up to speed
on what is called good building science.
"Minnesota has such strong and good codes that they
are as close to a Health House as any other program. But the
things we miss in Minnesota code that we think are absolutely
necessary is air filtration and water proofing."
Scott Scherer of Scherer Building Corp. in Minnetonka built
one Lung Association-approved house two years ago and plans to
build two others next year. He believes that all builders
could benefit from the new program and complained that some
who don't use proper building methods pay for it later with
repair time or attorneys fees.
"Building the house correctly in the first place is
extremely important . . . so it doesn't rot out. It has to be
ventilated properly," Scherer said.
Dee DePass is atddepass@startribune.com
|