Laars Heating Systems: managing construction industry survival

Source: Manufacturing Digital

Date :04/12/2007 10:39:40

Laars Heating Systems uses synergies with its parent company, emphasis on customer service, and new technologies, to succeed in a construction down-turn.

Laars Heating Systems Co. knows a lot about keeping its head above hot water.

Written by Alison Diana & Produced Nick Ledue

After all, the manufacturer of residential and commercial boilers has weathered several housing market downturns and been acquired three times since its formation in 1948.

The most recent acquisition was in 2005, by Bradford White Corp., a full-line manufacturer of residential, commercial and industrial products for water heating, space heating, combination heating and storage applications.

But this latest acquisition may well have been the most appropriate and successful in Laars’ history, says Mark Farrell, director of manufacturing, and a 19-year veteran at the company.

“There is a lot more synergy with Bradford White than with any other company – Allegheney Teledyne and Water Pik Technologies – that acquired us before,” he says. “They make water heaters and we make boilers. We’ve been able to brand water heaters as our products, and vice versa. We’ve both been able to package boilers.”

A wholly owned subsidiary of Bradford White, Laars can now offer customers bundled boilers and water heaters under its own logo, sales force and warranty, says Farrell. In turn, Bradford White taps its access to Laars’ long line of boiler offerings which it can then sell under either its or Laars’ name, he noted.

But the business benefits are not limited to product development, branding and sales.

“There are also synergies in the purchasing side of the business,” said Farrell. “We’re both in the same business. We either store water or heat water, so a lot of the components we need...

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