Specialist
Former VP at Cleaver-Brooks Inc
Agenda
- US boiler market
- Margins and pricing pressures
- End markets and new technology
Questions
1.
Could you contextualise the US boiler industry pre-coronavirus and share any market changes or impacts that may have stemmed from the pandemic?
2.
Have any specific end markets been particularly impacted by the pandemic, perhaps institutional, industrial, commercial or residential customers? Are there any markets you think will be permanently impacted or at least have a long-term recovery timeline?
3.
What are your thoughts on the impacts of the Biden administration on the boiler industry? Might this administration’s increased focused on green energy generation, solar and renewables than the Trump administration limit near-term market growth as it relates to power generation? Will it have a significant or meaningful near-term impact?
4.
Can you assess Cleaver-Brooks’s boiler market positioning? What do you think are its strengths or unique boiler technology competencies?
5.
I believe Cleaver-Brooks’s broad portfolio breaks down into smaller firetubes and larger watertubes. Can you assess the key technological differences and Cleaver-Brooks’s positioning in each? Is it stronger in one than the other?
6.
Are condensing boilers taking share from traditional firetube boilers? Is that a trend? Is it deflationary for the package boiler industry?
7.
Is there a good way to assess boiler demand across new constructions vs replacements?
8.
The barriers to entry are much higher for larger boilers and buildings, requiring more sophisticated technologies. Can you assess the competitive landscape of this top end of the market, highlighting key competitors? Cleaver-Brooks is often positioned as a leader for large-scale industrial or commercial boilers. Which other competitors should we be aware of? Are there any key points of differentiation?
9.
Have there been areas in which competitive pressure has increased for Cleaver-Brooks? You mentioned an element of increasing competition. Were you referring to the larger-scale segment or something on the lower end?
10.
How tight is labour capacity in the US boiler market, especially in technician roles?
11.
Has Cleaver-Brooks attempted to mitigate any labour challenges or future risks around labour constraints? Is there anything to be done? There is only so much players can do with labour dynamics, especially with some of the headwinds you just mentioned, but the company’s labour and technician capacity seems well positioned, perhaps due to some acquisitions.
12.
Is there anything else you would like to mention or expand on?
13.
Is there an alternative to Cleaver-Brooks’s distribution model? Have there been competitors or similar industries with other models that the company could transition towards?