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Company Profile: Viconics - remember the name, you will hear it again

For the present, Simon Ward is the only employee of Viconics UK, the offshoot of a Canadian company which makes zone controllers. It's his job to build up the firm in the UK, Europe, the Middle East and Africa. Tough job: yes, but he is already relishing the challenge. Paul Braithwaite reports.
Simon Ward is a director of Viconics. What is Viconics? Exactly, says Ward!

Viconics is a Canadian com-pany, based in Montreal, which manufactures, among other products, a range of intelligent communicating field devices. It employs around 100 people, turns over around £20 million and has been in the North American market for about 25 years.

The company began making micro-controller-based industrial process controls in the mid-'80s but, with the proliferation of electronic control systems, identified a market niche and began to develop the pre-programmed, field flexible communicating temperature controllers it sells today.

'More than 1,000,000 VT controllers had been made and sold since the launch,' said Ward.

Simon Ward of Viconics UK

'As sales grew the company saw an opportunity to break into Europe, the Middle East and Africa with a branded product.'

And it saw the UK as its point of entry into these markets.
Viconics is owned and run by an Italian Canadian Louis Viglione who, as an electronics engineer, is passionate about the products he designs and manufactures.
'Louis understands our market and has a great eye for opportunity,' says Ward.

Market development

Ward's role is primarily market development and he seems to be doing well. He reckons his contribution to the company's turnover in his first year will be about £300,000 which, in a depressed market, would be a great result!

The solutions Viconics offer includes zone, fan coil, VAV, AHU and heat pump control, all of which are, Ward admits, niche solutions, but the offer provides:

· Simplified Automation which means no software to write, special tools or licensing.
· Lowest installed cost - a VT controller combines a traditional ceiling-mounted controller, wall-mounted room sensor and a display, all in one device.
· Network Ready in that stand-alone products can be field upgraded with an interface card to provide network communications.

Combining these features creates a proposition that is an extremely powerful application, with cost savings, and scalability.

There are multiple routes to market for Viconics, primarily via the OEM sector, but Ward has established a core distribution network in the UK, including Sontay, Calon Associates and Western Automation to support the system integrator. These distributors will hold stock and act as agents for Viconics.

Working independently can be challenging, as Ward was previously a director of a large controls company.

'Now I work smarter. I don't have to worry about the politics for a start,' he laughs. And the time is almost there when he will have to extend the staff bill from one to two or even three.

'Initially, I will need some administration support. Someone who can run me, answer the queries, deal with the orders, etc. Someone who is happy to work on their own initiative.

'And then I will need a European technical support engineer, someone who is happy on the telephone but is ready, at a moment's notice, to jump on a plane to Europe to assist one of our customers.'

The rest of the staff will grow as the business warrants it.

The long-term view is that there will be representatives in all the main EU countries.

Of course, Ward and the agents have to talk to consultants so they will specify the Viconics products. But there is also a job to be done selling the idea to system integrators.

'The point of sale is lower down the contractual chain but the market development is further up where we are talking to the consultant, the contractor and, sometimes, the developer, explaining the benefits of our solution and how we can improve his return on investment, convincing him he should install Viconics controllers,' Ward adds.
'It is a case of making people ask themselves why they continue to use traditional methods when there are more effective ways.'

Selling this proposition is interesting. At first it can take time for customers to understand this proposition, as it is a feature-stacked solution that can be added to any BMS, so the market is huge.

'But then it's like a snowball effect, once they understand the value, the solution will be used again and again.'

He admits it's a hard sell. Given the economy, why take a risk?

Hands-on help

Which is why Ward has adopted a policy of working with the system integrator throughout at least the first installation.

'If I am part of that process, I can show the integrator the solution is effective.''
Cost saving during the installation process is only part of the story, and there are other energy saving elements to the device.

For instance, with the application of the integral PIR, the setpoints are applied to the control strategy - occupied, standby and unoccupied which, when used, will save up to 30% of the energy use in the space.

'This is ideal, for instance, in hotel rooms,' he adds.
'Viconics has also built-in some future-proofing.'

It is, he says, communication agnostic. 'Most of the BMS systems communicate over certain protocols, such as BACnet and LonWorks. We have built in an option card for these protocols so they can sit on those networks.

'But Viconics offers only part of the solution. If the system needs to switch on a boiler or a pump, then it still needs a BMS which relies on the core skills of the system integrator. A Viconics controller offers zone solutions.'
It breaks the mould for those who have always installed, for instance, on single vendor primary plant and zone controls.

'Now I can offer an alternative to the unitary controls which has a number of advantages.'

And this means better integration, reduced energy costs and reduced installation time, as little or no engineering is involved in configuring these devices.
The software is pre-defined in these devices so no expensive BMS programmer is required. This also promotes standards and reduces risk, he adds.
There are many variations of the controllers in the catalogue and from this the specifier can choose the one that suits his particular application. Ward has done the homework!

'I looked at a controls solution of some of the major manufacturers. How long is it going to take to install? What are the material costs? Does it have to be programmed? How long does programming take? How long does commissioning take?'

The savings are between 15 per cent and 40 per cent on average with the Viconics product depending on solution. And, Ward adds if, for instance, there were hundreds of fan coil units in a building then the cost savings can run into thousands of pounds.
'That's the message we have to get out to the market. Think a little differently and there could be vast savings.'

But, he adds, there is still the risk factor, so it is a case of explaining to the contractor why he recommends the installation of the units and, with a slightly different message, to the developer as to how much energy and cost he will be saving.
'Once the message of the cost savings on one job has been received by a project manager working for one contractor then it cascades down to other project managers and to other contractors.'

When I suggested the Viconics equipment was for new build and major refurbishment, Ward countered Viconics had a product in its portfolio, the VTR 7300, for refurbishment projects of any size.

'It is a retrofit-specific solution. It has three parts. The first part requires the installation of a VTR 7300 wall device and a VC 3000 relay pack which are linked via a 3-wire local bus, allowing existing thermostat to fan coil wiring to be reused which in turn reduces cost, labour and installation time.
'You can do away with 90% of the components that sit on the side of the FCU and replace this with an intelligent relay pack''

Cost down

And, he adds, the cost is dramatically reduced compared with a traditional retrofit solution.

Viconics' latest product is a wireless version of the unit.
'This means we do not have to have networks around the buildings apart from the data terminal to the fan coil unit and communication with any other device is wireless.'

He says this makes the message even more powerful.
From a service point of view, Ward maintains the engineer does not have to climb up to the fan coil unit when he can go to a unit on the wall.

'If anything goes wrong, it is easy to swap our device out for a new one.'

And Ward is putting in a lot of effort to sell up the company.

For instance, Viconics had a presence at ASHRAE, Light + Build and a stand at the recent London HEVAR, and will continue this level of promotion for some time to come.

The trade is being sent information packs, with the firm targeting different sectors of the industry each month.

Ward admits Viconics has put a lot of trust in him working hard to establish the brand. He has no intention of letting the company down.

Real value

'I believe in the product and there is real value in the proposition and if you believe in a product, you can sell it.'

He has been hand-holding one systems integrator who was about to install the latest wireless units. He went to the building, helped the integrator in his survey and only when Ward was sure the wireless units would work, did he feel happy enough to complete the deal. If he had not been happy, he would have recommended another route or wired units.

And, according to Ward, the added value is, should the network fall over, the device will still work as all core components are in a single device, so therefore not network dependent.

'And the spin-off is that having got this building right first time, this integrator will tell his colleagues. He will be a great salesman for the brand.'
Ward seems to have his marketing in place, products he believes in and the will to succeed.

Never heard of Viconics?
You will!
15 October 2010

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