E360: Addressing the Challenges Facing the Refrigeration Industry

Transcription

1 E360: Addressing the Challenges Facing the Refrigeration Industry Newark, N.J., August 24, 2016 Don Newlon V.P./G.M., Refrigeration Marketing Emerson Climate Technologies

2 Thousands of techs % Energy We re Now Trying to Balance Four Variables DOE regulations require new system designs -35% -17% -37% 100% 80% 60% 40% % of top 50 retailers testing refrigerant alternatives 83% Now '17 Now '18 Now '20 Reach-In Ice Walk-In Dwindling workforce impacting maintenance costs 20% 0% $K 250 6% Component electronics are a larger spend K shortage HFC Optional Electronics Mechanical CO₂

3 % Market % energy Where We Are: Regulations and Refrigerants DOE energy Reach-In Ice Walk-In Supermarket CA Title % -17% -37% -25% 0 Today 2017 Today 2018 Today EPA refrigerants 50% 100% Low-GWP blend 100% Low-GWP blend Low-GWP blend Propane 40% Low-GWP blend Propane CO 2 Today 2019 Today Voluntary Today 2018 Today 2017 Redesigns Are Widespread. Results Require System-Wide Optimization.

4 Coming Up Results E360 Is Helping Making Sense of the Most Pressing Issues in Refrigeration Event participants = 7,430 Further touchpoints = 12,677 Other 13% Consultant 8% Wholesaler 12% Contractor 16% E360 webinars 6,179 Outlook magazine 7,313 End user 10% OEM 24% Emerson 17% E360 Forums 1,251 E360 online 5,364 Aug. 24 Sept Oct. 12 Nov Jan. 30 Feb. 1 Feb E360 Forum Newark, NJ Energy & Store Dev t New Orleans, LA E360 Forum Tucson, AZ Intermodal Europe 2016 AHR Expo Las Vegas NAFEM Show Orlando, FL

5 We Have 9 Regulatory Requirements The Next 5 Years Supermarket (Rack) 1/1/17 <2500 GWP Walk-In (Remote CDU) Cooler Freezer 1/1/18 <2500 GWP 1/1/ % 20-30% Reach-In (Stand Alone) Cooler <2,200 BTU >2,200 BTU Freezer 3/27/ % 7 th Circuit Upholds DOE s Final Rule New 1/1/19 <600 GWP <600 GWP <1500 GWP 1/1/20 Ice Machines 1/1/ % In Proposal: 1. EPA: Change Of Status for Soft Serve, Frozen Carbonated, Nozzle Machines, Cold Storage in EPA: R-290 (Propane) Approval for Ice Machines in CARB: All Commercial Refrigeration <150 GWP by Jan. 2020

6 Industry Preparedness to Meet Compliance Dates Over half have a plan in place and are prepared to meet compliance dates. This leaves quite a few companies not ready for the change. EPA Plan in Place (n=46) DOE Plan in Place (n=47) Not yet 44% Yes 52% Not yet 36% Yes 57% Level of Preparedness: 13% 52% 15% 17% Level of Preparedness: 15% 45% 19% 17% Very prepared Somewhat prepared Only slightly prepared Not at all prepared CR1. Does your company have a plan in place to meet the compliance dates? CR2. Overall, how would you rate your company on being prepared to meet the compliance dates? CR4. To the best of your knowledge, what percentage of your equipment currently passes regulations?

7 The Majority Expect Components Will Change Based On The Regulations Top-2 Box I expect some components will change 77% 12% 10% 2% 89% I expect some of our products to become obsolete 53% 10% 14% 10% 14% 63% I expect component costs to increase 51% 22% 20% 4% 4% 73% 5 = Completely Agree = Completely Disagree CP3. Considering the impacts of meeting the new regulations for the DOE and/or EPA, please indicate the extent to which you agree or disagree with each statement below.

8 Capital Investments Are Needed to Meet DOE Regulations 6% 11% 11% 40% Most foresee needing capital investments within their organizations to meet DOE regulations (72%). 32% Significant investments in capital Some investments in capital Limited investments in capital No investments in capital Don t know CP1. Would you say that DOE regulations are creating a need for your company to make

9 Resource Planning to Meet DOE Regulations 2% 6% 6% 17% 47% The majority plan to use existing internal sources and staff; however, nearly one quarter plan to hire additional staff in order to do so. 21% Planning to use existing internal resources and have the staff Planning to use internal resources, but need to hire Planning to use external resources for the redesigns, and feel confident about it Would like to use external resources, but unsure who to use Would like to use external resources, but have some reservations Does not apply to us CR10. In terms of resources needed for any redesigns in order to meet the new DOE energy efficiency standards, are you

10 Comprehensive Industry Involvement Active participant in industry associations Authorized wholesalers 55+ businesses 1,000+ locations Participation in agency meetings Original equipment mfg s of engagements each year Contractor calls and roundtables Educational services Educate 1,000 s of service techs/year End user calls and visits Speaking engagements and conferences

11 Our Approach to Innovation Will Need To Change Create and foster an environment of disruptive innovation that can help develop out of the box or no box thinkers and doers Encourage holistic thinking, with a global systems point of view that can lead to creative solutions for the ultimate user (customer pain points, today and in the future) Foster bold collaboration within Emerson, and with academia and industry partners that leads to novel ways to solve our problems Use stimulating real end-use scenarios that can help the thinking process and turn ideas into solutions that work Innovation which will make us a success in the future is different than the past

12 The Helix Innovation Center at the University of Dayton, Ohio Foodservice restaurants The Helix Supermarket and convenience store Connected kitchen Facility management Equipment design Refrigerants Store optimization System architecture Refrigerants (CO 2, etc.) Controls and sensing Solving our industry s most challenging problems

13 5 Eco-systems Can Simulate Real World Testing In Weeks Not Months or Years Home Building Data Center Kitchen Supermarket We re engaged in solving some of the most pressing issues in our industry

14 Evaluating Multiple Solutions to Help You Equipment Variable speed drives Controls for complete facility management Integrated compressor diagnostics Reliable, low-gwp, refrigerantbased scroll compressors Precise temperature control at the case Anti-condensate controls Precise load matching digital compressors Economics Facility-wide optimization and control lowers operational costs Predictive maintenance prevents costly downtime and equipment failure Efficiency-enabled savings (space and energy) Improve food quality and safety Energy Reduce energy consumption Achieve regulatory compliance Match energy consumption with facility requirements Environment Reduce carbon footprint Low-GWP/natural refrigerants (CO 2 ) Provide a sustainable link in supply chain

15 E360: Four Resources to Help You Balance the Equation

16 Thanks for Being Part of the Dialogue

17 Thank You! Questions? DISCLAIMER Although all statements and information contained herein are believed to be accurate and reliable, they are presented without guarantee or warranty of any kind, expressed or implied. Information provided herein does not relieve the user from the responsibility of carrying out its own tests and experiments, and the user assumes all risks and liability for use of the information and results obtained. Statements or suggestions concerning the use of materials and processes are made without representation or warranty that any such use is free of patent infringement and are not recommendations to infringe on any patents. The user should not assume that all toxicity data and safety measures are indicated herein or that other measures may not be required. 17