Press Releases

October 2009

Graham Williamson at Ideal Boilers says why he thinks the tough times of the last year will leave the commercial heating sector in a stronger position as the economy shows signs of recovery.

The headlines of the last 18 months have said it all: Britain has been in the grip of the toughest economic situation for decades. While it is the topline statistics and problems in the financial sector that have grabbed most of the headlines, the effect of the downturn has been profound across all business sectors. Few need reminding of how the unstable financial climate has forced businesses to cut spending across the board and the impact this has had on the heating sector, with manufacturers and contractors both being affected.

Tough though as these times have been, the focus on cost cutting and the scrutiny of budgets may prove to be the boost for the heating sector as the economy recovers. Spend on energy costs, for example, may have previously passed by without much consideration, but the need to reduce outgoings is changing this. It is now no longer acceptable for buinesses to waste money on needless energy use and investment in infrastructure is now made not only on the improvements it can make to operations, but also the efficiencies it provides. Whereas previously, changes to heating technology may been made simply to replace ageing equipment, businesses are now far more aware of the financial benefits of doing so and reconsidering investment in their heating systems. Coupled with a growing pressure to reduce carbon emissions, we believe this will translate into ongoing enthusiasm for energy efficiency.

For example, many companies are showing an interest in condensing boilers. These will not only enable them to achieve up to 20% cost savings and reduce their emissions, but could also remove the unnecessary 30% increase in heating costs that an older boiler which has been poorly operated or maintained could be incurring. Those who adopted a new system also avoided the drawbacks an older system presents such as costing more in the long-run through repairs, replacement parts and servicing, and the risk of a sudden and unplanned purchase should it suddenly fail.

A high efficiency condensing boiler can potentially return energy efficiency levels of up to an impressive 94% when operating at full capacity. For example, Ideal’s new highly efficient Imax W100 design, offers 95.9% (net CV) at maximum load and a seasonal efficiency of 94.7% (Building Regulations 2006 L2). Therefore, upgrading to a condensing boiler, could not only help reduce end-user’s fuel bills, but it will also help contribute towards carbon reduction targets.

The economic climate is also stimulating increasing interest in renewable technologies in the commercial sector, as many businesses looked to adopt a long-term approach to efficiency. The announcement by Ofgem in October that energy bills could increase by as much as 60% could well add further interest in renewable as businesses look to take greater control over the energy use to mitigate against future price rises.

What’s more, Enhanced Capital Allowances meant that businesses are able to purchase energy efficient equipment using 100 per cent rate of tax allowance in the year of purchase, therefore further benefitting those who chose to address energy efficiency sooner rather than later.

As a result of the industry’s collective hard work and determination over the past year we have not only managed to maintain good business but we have also established a position of strength from which to enter 2010. If we are to maintain this position, and indeed, stimulate the growth of the industry further as the financial climate stabilises, we must continue to work together to ensure that we are fully equipped with the knowledge to meet the needs of the market.

For more information on the high efficiency range of commercial appliances from Ideal Boilers visit www.idealcommercialboilers.com, email commercial_heating@idealboilers.com or call the commercial heating team on 01482 498 690.