Reprinted from:
august 2012 Vol 12 | No 8
HYDRONICS
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Htp: people, process
and products
H
eadquartered in East
Freetown, Mass., HTP has
been a leader in highefficiency boiler and water-heating
technology for almost four decades.
Phc News had a chance to chat with
HTP CEO Dave Davis. He shares his
thoughts on the company’s past,
present and future.
Can you tell us a little about HTP’s
history? When and where was it
founded? How have its philosophy and
its product line evolved throughout
the years?
My father started HTP in the
basement of our home in Somerset,
began the business by producing
tankless coils for the solar industry
boom of the 1970s. We incorporated
the company in 1981, first moved into
our current facility in 1984 and have
undergone several expansions since.
We currently have four locations in the
U.S., where we make innovative
systems for the space heating, water
heating, combined appliance and solar
water heating markets.
In 1984, we began producing
indirect water heaters for the space
heating market and introduced one of
North America’s first condensing water
heaters for commercial and large
residential applications. Our SuperStor
indirect and Phoenix water heaters are
market leaders today because
of our drive to be industry
leaders. Our use of 316L
stainless steel and the way we
manufacture our core tank
products have always set us
apart from the competition.
In 1989, we were the first
company in North America to
offer a greater than 90 percent
efficient, condensing, low
mass boiler for the space
heating industry. I take great pride in
that achievement. Our high efficiency
boilers offer consumers a fantastic
alternative to traditional boilers for
“Our high efficiency boilers
offer consumers a fantastic
alternative to traditional
boilers for both the residential
and commercial markets.”
Massachusetts, in 1974, which seems
like a really long time ago now, but I
was involved in every aspect of the
business from a very young age. We
both the residential and commercial
markets. I would never have guessed
that this market would have grown to
this volume and importance in the
industry nor have as many competitors.
Today, HTP’s goal is to be an
innovative leader in our four core
markets and to offer exceptional
products with applications for both the
commercial and residential markets.
HTP rebranded itself and underwent
something of a cultural change and
refocusing when Dave Martin came on
as president in 2006. Can you talk
about that? What types of philosophical and operational changes have
taken place in the past few years?
From the market perspective, HTP
used to be a house of individual, yet
well known, product brands. There was
no company identity. People only
knew us by whatever product brand
they were most familiar with. So we
have totally rebranded the company
with a new identity and de-emphasized
the product brands by putting only the
HTP brand on all products.
HTP had grown so rapidly in the
early 2000s that it was all people could
do just to keep up with demand. I
wanted to concentrate my efforts on
working with the engineers to launch
exciting high efficiency heating and
water heating products, so I brought
Dave on to run the company and help
take it to the next level. Internally, we
focused on the 3 P’s: people, process
and products. We made sure that we
had the right people in the right places
and provided the tools and training
they needed to get the job done better
and more efficiently.
We are very pleased that we have
been able to partner with the state of
Massachusetts to fund a multi-year
implementation of lean principles
throughout all functional areas, not just
manufacturing. At the management
level, Dave has brought in a lot of
talent with industry experience to help
improve our internal and external
processes, with the goal of introducing
and supporting getting industry leading
products to the market faster than ever.
Tell us about the kinds of products you
offer. What have been some of the
most high-profile and popular ones
over the years?
HTP is a manufacturer of advanced
heating and hot water systems, so we
have the opportunity to deal with some
of the best heating and plumbing
contactors in the business. We were
first widely known for the SuperStor,
the industry’s premier stainless steel
indirect water heater. The success of
this high performance product has
allowed us to be the leading market
share player for decades. We followed
the success of the SuperStor with a
stainless steel condensing water heater
called the Voyager.
HTP is an industry leader in high
efficiency commercial gas water
heaters. We took this category to the
next level with the introduction of the
Phoenix, a modulating, condensing
tank type water heater. HTP’s biggest
high profile product launch was the
Munchkin, a low mass, high efficiency
boiler. Since then, HTP has continued
to lead the way in high efficiency
technology with the MOD CON
commercial boiler, solar tanks with
either electric or high efficiency gas
backup and unique combined space
and water heating products in the
Versa series.
How have technology and the web
changed the way you do business?
How does it affect the way you
interact with customers?
Web and smartphone technology
have changed the way people all over
the world interact and communicate.
HTP has been an industry leader in the
way we communicate to our
customers. We recently redesigned our
website to be our preferred
presentation tool. The web pages
themselves are dynamic and can be
used in presentations, describing the
major features and benefits of our
products. We use fewer words and
great imagery to present the main
features of our products. The website
is also interlaced with tools,
comparison charts and product
documentation for both consumers
and the professional contractor.
Over the last decade, the growth of
the Internet and video technology has
made a huge impact on how people
educate and entertain themselves. At
HTP we sometimes feel like a movie
production team. A few years ago we
brought in resources to create our own
videos, brochures and other sales and
product collateral. We utilize
technologies that allow us to animate
our products in videos that explain the
features and benefits to a consumer or
to provide a technical training overview
for professionals in the field.
We recently launched a mobile app,
which we refer to as a contractor’s
“Personal Technical Assistant,” because
it has the most recent technical data,
parts breakdowns and sales collateral,
all accessible via smartphone or tablet.
I am most excited about the video
technology included in the app. It
allows contractors that might be
troubleshooting on a jobsite late at
night to use our Personal Technical
Assistant to review how to resolve
problems with error codes. Imagine
being able to just look up the fault
code and re-familiarize yourself with
the troubleshooting sequence by
watching a two-minute video that
walks you through the procedure.
We are also getting the word out
about the great new products and
innovations through a robust social
networking presence. We are constantly updating company blogs,
Facebook and Twitter with the latest
news from our company and interesting content from the industry. Our
website has contractor forums where
people can watch training or troubleshooting videos and post questions or
comments. We include a searchable
knowledge base that gives professionals the ability to self-educate.
Beyond the products themselves, what
other kinds of value does HTP offer its
customers?
In my opinion customer value is a
combination of performance, quality
and after-sale care and support. Not
only have we improved the way we
present ourselves to our customers,
but we have also improved how we
service and support customers after
the sale. We recently introduced a new
telecommunications and CRM
ticketing system that allows our
customer and technical services
departments to interact with people in
a much more compelling way.
Our new packaged systems allow us
to create and prioritize customer
tracking tickets based on when they
were received, on technical
requirements or on how long they
have been open. We can track one of
our product’s complete service history
and make that available to our service
technicians for additional troubleshooting support. One of the most
"We are also getting the
word out about the great
new products and
innovations through a
robust social networking
presence. We are
constantly updating
company blogs,
Facebook and Twitter
with the latest news from
our company and
interesting content
from the industry."
important features is our ability to track
customer call volume and issues so
that we can better control how long
customers have been on hold and the
types of issues people are experiencing.
Information is the key, and we are
taking corrective actions to provide
customers with a better experience.
Are there any recent installations
you’re particularly proud of?
The Mass Housing Authority in
Meuthan, Mass., needed to change out
their old heating and water heating
equipment from 1998 with high
efficiency equipment. The installation
had warm air furnaces with standard
water heaters. The state of Massachusetts chose our Phoenix modulating
high efficiency water heater connected
to an air handler to provide both heat
and hot water for each home. The
Phoenix will not only provide an
abundance of hot water, but will also
provide heat to the space through an
air handler. Installation costs were low,
with piping and venting for only one
unit versus for two appliances. It was
an easier installation at a lower cost.
Since our units were installed, the state
has realized energy savings of up to 40
percent versus the old equipment, with
fewer complaints on hot water and less
maintenance cost. This type of installation is what HTP is very proud of,
supplying high efficiency solutions that
provide years of reliable service and
operating cost savings.
I am also thrilled to be able to talk
about our new contractor rewards
program. In July 2012, we introduced a
new program that allows contracting
companies to earn points for most HTP
product purchases. These points can
be redeemed for cash, HTP products,
tools, iPads and other great rewards.
We are doing this because we want to
form a greater partnership with our
contractor partners. The program also
offers registrants prioritized calling for
technical support, as well as communications for special promotions,
bulletins and new product intro-
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Htp offers customers value beyond product
ductions. It is a great program that
offers real value. We think this program
is going to be a huge success.
Do you have any new products or
services in the pipeline for 2012?
This year will see the expansion of
our water heating category. First, we
are launching a line of commercial gas
and electric water heaters featuring
traditional glass-lined tanks. These
3
water heaters constructed out of 316L
stainless steel, starting with models of
20 gallons and below. We feel these
products will be very successful, due
to their light weight, long-lasting
durability and impressive warranty.
Subsequent releases of additional
models will complete this product
offering up to large input, heavy duty
models. We also expect to introduce
additional gas-fired modulating,
condensing water heating
models.
We haven’t forgotten the
heating/
boiler side either. We have
launched a new line of
residential modulating,
condensing fire tube boilers
called the Elite FT. These wallhung boilers feature top and
bottom heating loop
connections and easy
contractor access to all parts
for easy installation and
service. On the commercial
boiler side, we will soon be
introducing larger boilers in
our Mod Con series, up to 1.7
million Btu.
"This year will see the
expansion of our water
heating category... we are
launching a line of
commercial gas and electric
water heaters featuring
traditional glass-lined tanks
[with] better materials, better
construction and better
features...we are launching the
initial phase of a line of
commercial electric water
heaters constructed out of
316L stainless steel, starting
with models of 20 gallons and
below...a new line of
residential modulating,
condensing fire tube boilers
called the Elite FT...On the
commercial boiler side, we
will soon be introducing larger
boilers in our Mod Con series,
up to 1.7 million Btu."
products are a step above what is
currently in the marketplace, due to
better materials, better construction
and better features, which are reflected
in a better warranty to the owner.
Second, we are launching the initial
phase of a line of commercial electric
How has business been this
year? Any forecasts or
predictions in the coming
months? Where do you see
business in the industry a year
from now?
You really are looking to get
me in trouble by asking that
question. We are a New
England-based company that
makes great water heating and
space heating appliances, but
we did not have a winter last
year. Throughout North
America we saw some of the
mildest temperatures on
record and that certainly
impacted business. Also, we
were very disappointed to see
federal incentives disappear for many
types of high efficiency equipment. I
am an optimistic person, so I will
predict that we will have a long cold
winter this year and that consumers
will have a little more money in their
pockets to upgrade to high efficiency
equipment. Let’s hope that my
prediction is more accurate than that
of our local weather newscasters.
I believe our industry is still in
transition. New home construction will
continue to rebound slowly, and low
natural gas prices coupled with a slow
economic recovery will impact makers
of high efficiency equipment. But
green products are still going to
capture more and more market share
versus traditional equipment. Consumers are not short term thinkers
when it comes to home appliances.
They look for products that are highly
efficient or carry the Energy Star label.
What kinds of innovations do you see
in the future for boiler and water
heater technology?
I believe that water heaters will
continue to become more efficient.
The DOE efficiency standards
modification in 2015 for residential
water heaters will force development
in this area. We are excited by this
mandate because we have been
producing highly efficient water
heaters since 1987. Large residential
electric water heaters will be driven by
the DOE standards, and you will see
heat pump water heaters become a
more relevant percentage of the
electric market. Gas water heaters will
look to modulating condensing
technology to meet the 2015
standards and provide good economic
value to homeowners. HTP is
continuing to invest heavily in the
development of high efficiency water
heaters, and we look forward to
making some major new announcements in the coming months.
What’s on the horizon for HTP? Where
do you see the company in 5 years?
I want HTP to be a company that
makes great new products; products
that are innovative and revolutionary
to the market. We may never be the
biggest company in the market, but we
can design and produce appliances
that challenge performance and
efficiency standards. Now that is
something that I can get really excited
about! l