Tighter control and better oversight of building specifications are crucial if the renewables sector is to thrive, says David Whitfield, managing director of heating equipment supplier Evinox. Ian Vallely reports.
There is a well-worn management maxim that says: 'If you always do what you've always done, you'll always win what you've always won.'
The implication is, of course, that there is no progress without innovation, something of which David Whitfield managing director of Evinox, is acutely aware. Indeed, it is what has driven him to create a radically different kind of heating equipment supplier that effectively offers an 'end-to-end solution' for a wide range of both conventional and renewable heating technologies.
Evinox started trading in 2000 as Geminox UK. At that time it was the UK partner for Geminox Boilers France, a subsidiary of heating giant Robert Bosch Group.
Close relationship
Says Mr Whitfield: 'We were essentially appointed as a distributor, but the relationship was - and remains - closer than this. That is why we call ourselves a 'partner'; we represent them as they would represent themselves. So, for example, we offer a full stock of spares, strong after sales support, design and technical support, and so on.'
Evinox continues as Geminox's partner in the UK. However, in early 2006 the Bosch Group ruled that Geminox should no longer export renewable technologies to its partners because it was keen for Bosch subsidiaries to have access to them.
Mr Whitfield again: 'We knew we wouldn't survive without renewable technologies so we needed to radically rethink our strategy and find new partners with which to trade.'
Consequently, the company changed its name to Evinox and started looking for high quality products and companies in the renewables sector. A slew of new deals followed and, as a result, Evinox developed exceptional strength in the luxury housing market and in communal heating. It also supplies the healthcare, leisure and light commercial sectors.
The company has a turnover of around £4 million, but has an ambitious five-year growth plan designed to take this up to £20 m.
With this in mind, former Hamworthy Heating director Mike Shaw joined Evinox last year with a brief to develop Evinox from a regional (predominantly London South East and South West) into a national company.
Organic growth is a key element in this strategy. Evinox currently employs 25 people, six of whom are field sales engineers. In five years, it expects to have expanded this to around 15 sales people.
Mr Whitfield says: 'We will start by building on our strengths - luxury heating and communal heating, and large-scale solar thermal systems. However, we also plan to expand into other areas including large-scale solar photovoltaic (PV) systems.'
Evinox specialises in project work; Mr Whitfield emphasises that it is not a box shifter: 'Ours is an end-to-end solution. So, for example, we are involved in design - we have our own building services engineers; we are involved in the planning; on site doing project management; training and co-ordination through to commissioning; project completion and handover, and then after-sales support.
'Once the building is occupied, we also do the revenue management and billing with our communal heating.'
The company has also identified a big market in the food, catering and hotel industries, reclaiming waste heat and sending it to a thermal store to produce hot water.
Mr Whitfield adds: 'We are looking at the models employed elsewhere in Europe. For example, in northern Italy, if you want to build a development of four or more apartments, it has to be a communal system; you can't fit individual boilers.
'We believe communal schemes really are the way forward because when you are building houses that have low energy requirements, being able to take a little bit of energy off a district heating system when you need it is much better than having an individual appliance in there.'
However, he is critical of the way some companies in the renewables sector operate: 'A lot of our work involves simply achieving what the client needs in order to gain planning permission. We could do a great deal more, but, for the developer, all the renewable strategy does is hit their bottom line. Consequently, they tend to get through planning on the bare minimum - it is a price-driven issue.
Inadequate policing
'I believe that there needs to be far stricter building control legislation and more emphasis on signing off buildings because what is specified in order to get consent for the building often doesn't end up in the building.
'So the original design might incorporate, say, solar thermal technology or biomass, but the building that is eventually put up may not because the process is not adequately policed. Or, the renewables can end up being a white elephant because they are installed, but not turned on.'
For Mr Whitfield, it is up to the client to drive the specification: 'He must control the process so that what is specified at planning stage is what is fitted. In my view, that doesn't happen often enough.'
He points out that the energy consumption of biomass boilers in the rest of the European Union is metered to ensure they are being used. 'The Renewable Heat Incentive comes into effect next year and this will involve Government money being paid out to use this equipment; if it isn't used then that is a dreadful waste and we will fail to hit our carbon reduction targets.'
Stronger policing of the construction process should also involve the client retaining a consultant throughout the build process, says Mr Whitfield: 'We see a lot of cases where a consultant will be employed to get the building through planning and then it will be left to the contractor to do their own thing on site. As a result, the specification can get stripped and corners can get cut.'
Corner-cutting on mechanical equipment is a false economy: 'For example, we are currently working on a resolution with the NHBC. In this case, the systems are being modified and reinsulated three years down the line; people may have to move out of their apartments because corners were cut during the build process. It is disruptive and expensive as well as being a waste of time and effort.'
Of course, not all contractors are guilty; as Mr Whitfield points out: 'Many do an excellent job. However, there is the danger that some clients will create a Dutch auction whereby everybody is forced down on price. If the contractor is being squeezed, then something has to give.
'The onus is on the client to ensure that the construction is fair and equitable all along the supply chain from consultant to main contractor to sub-contractor, and so on. The onus is on clients to be realistic in their expectations, especially on price.'