The Rinnai Corporation is a world-leading manufacturer of tankless water heaters, condensing boilers, and other hydronic heating solutions. The company is based out of Japan, but currently the Japanese domestic market is a difficult one to work in. A combination of high government debt, negative population growth and almost no immigration has resulted in a stagnant economy.
When looking around the world, they see the North American Market as the greatest growth vehicle for the corporation moving forward. “Driving sustainable growth, profitable growth is our first priority,” says Frank Windsor, President of Rinnai America Corp.
Quality is Our Destiny
“Quality is our destiny,” is one of the company slogans Rinnai takes very seriously. Part of fulfilling that promise is a constant drive to improve the efficiency of their products, and to better meet the needs of their customers.
Right now, close to 85% of the water heating market is tank water heaters that deliver an efficiency of about 62% to 65%. Tankless and tankless condensing water heaters, however, can deliver operational efficiencies in the mid-90% range. And those efficiencies have driven adoption. The tankless market in North America has grown in just the last seven years from only 8% to about 18% of the gas-fired water heating market.
When Windsor first came to the company back in 2014, Rinnai was taking a Japanese product and modifying it for the North American consumer. “Today,” says Windsor, “we’re doing full-blown product development for the North American market.”
To keep that laser-focus on the end user, Rinnai tries to keep its manufacturing as close to the customer as possible. Three years ago the company built a new corporate headquarters in Peachtree City, GA (which would later grow to become the company’s world-class innovation center). At the same time the company opened a manufacturing facility in Griffin, GA. Today, the company is in the process of completing a 300,000 sq. ft. manufacturing and distribution center in Griffin.
“This year alone we will have invested $100 million in the North American market,” says Windsor.
Opportunities and Challenges
Rinnai has been a leader in the residential tankless market. Now, as the pandemic comes to a close, they are hoping for a new push into the commercial market by delivering both water and space heating for restaurants and hotels, as well as healthcare and educational facilities.
But the company also sees challenges on the horizon in the form of regulation. A push towards electrification is an important concern for all natural gas appliance manufacturers. There are already cities in California—like Berkeley and Sacramento—that are banning gas in new construction. However, Windsor notes that from the power source to the point of use electricity loses 65% of its energy, whereas natural gas at the source is 95% to 96% efficient.
The concern (and it should be a concern for everyone) is that the rush towards electrification will put a terrible strain on an already overburdened power grid. “The big question that needs to be understood,” Windsor says, “is can the grid support the demand and will the consumers be willing to pay the cost of upgrading that grid in their electric bill?”
The move to electrification will require substantial investment in infrastructure. In the meantime, Rinnai will continue to work on improving the efficiency of their product, and to provide better solutions for consumers. “Rinnai America is focused on the brand promise of creating a healthier way of living,” Windsor says, “whether its gas, electric or hydrogen, we’re going to look at all technologies in the future to make sure we can take care of our customers.”
Eyes on the Future
The new factory and distribution center in Griffin will open at the end of December. Soon after, the company will be moving all its non-condensing water heater production from Japan to the US; 100% will be made in America next year. “We have 60 acres that we’ve purchased, and we’ve got a really good footprint for future growth,” Windsor says.
That growth will depend on people. “We really focus on having a highly talented workforce that’s fully engaged and committed to Rinnai and to our customers and where we want to go,” Windsor says. The new investment will, in only the next year, require another 150 Rinnai employees.
As part of its commitment to serving as an employer of choice, Rinnai offers current and future employees competitive pay, top benefits, work-life balance and growth opportunities. Of the 150 new roles being created, most are within the manufacturing and distribution sector and range from associate-level positions to managers. However, Rinnai is also actively recruiting for more than ten leadership roles ranging from group leaders to a new area manager, as well as several other maintenance, safety, engineering, human resources and information technology roles.
Rinnai is hosting a six-part series of virtual and in-person job fairs, specifically focused on recruitment for the manufacturing facility as the company leads up to the official grand opening. With the variety of positions created, spanning different experiences, expertise and specialties, each session provides the ability for potential employees to gain insight into the company culture and other career advancement opportunities.
The Contractor in Mind
Rinnai has long made outreach to the contracting community a priority, and as it moves forward in its North American expansion will renew its commitment to the tradespeople that specify and install the company’s products. The company already offers the Rinnai Experience, a chance for contractors to get hands-on with the company’s technology.
“We need contractors at the forefront of our technology,” Windsor says. “By investing in our learning system, we can help them train their newcomers to the industry.”