Category: Uncategorized

Buy Cheap, Buy Twice

Posted on by Lindsey Burbee

I’ve been in my role, with Melink Corporation, as a Sales Engineer just over 1.5 years.  I want to ensure it’s understood that I am certainly no expert in the “Construction World” but I do have tangible experience.  This article’s content is based on my first-hand experiences, real-world applications I’ve dealt with and conversations I’ve had.  Thus, these opinions are largely subject to my own with some additional input from outside articles and research.  

My first week into this role was a mix of emotion, to say the last.  It was during this week that my manager (whom I see as an industry expert and mentor) expressed to me [something along the lines of], “Eric, you’re dealing with one of the toughest verticals Melink works within [New Construction].  I’ll be honest with you – you’re going to learn so much but you’re really going to have to learn to love frustration.”   Yes, you [reader] likely share my same sentiment – skepticism, surprise and curiosity; though, it didn’t take long to understand what he meant.  I was “christened” nearly the very first project I dealt with.  Long story short, despite our product being hard specified by the hired designing Mechanical Engineer, our product was ultimately “value engineered*” for a cheaper alternative.  Echoing my feelings earlier, I was surprised, curious and frustrated.  I became aware of the “Achilles heel” of the New Construction world – the bidding process (which is influenced by cost).  Cost is, and always has been, the deciding factor in mostly all aspects of a new build project.  It makes sense, until you dig deeper.

Everyone is guilty.  Even the product manufacturers should hold themselves accountable in this regard; they/we are just trying to play the ‘game’ and stay in business.  In his article, “People Are Cost-Driven with Kitchen Equipment but There’s an Adage of Buy Cheap, Buy Twice”, Andrew Seymour interviewed a chef by the name of Hayden Groves.  Mr. Groves is quoted as saying some buyers are too “Excel spreadsheet-driven” and end up trying to shave off costs when it might not be the right move for the business.  First hand, I’ve seen this happen, as explained earlier.  Our controls can often be eliminated for a cheaper alternative that cannot do the same thing, thus cannot produce the same results as our technology.  This decision is often made without any discussion or pragmatic decision process.  Who makes this decision?  Ultimately, it should be the owner or whomever holds the checkbook and it often is; in this case, I understand.  The owner can do what he/she wants to do.  Unfortunately, often it’s a ‘bidder’ who is trying to win the project by competing solely on cost.  Again, I want to reiterate that this doesn’t happen every time, but it does happen way more than it should.  Yes, I am saying that if a trusted designer hypothetically specifies a Rolls-Royces then you’ll likely see most bidders price out a Toyota Camry (Toyota’s are great vehicles – I own one!).  Yes, they both have engines and four wheels, but they are uniquely different and have glaringly different features, components and thus, different values.  Without going down this rabbit hole, I’ll just say it’s the principle of the matter…that matters.   Attending an industry conference this past week, I had the chance to sit down with consultants and manufacturers.  This exact discussion was brought to the table as a point of frustration for the consultants.  They share my frustration!  This is a broken process and research support this argument.  Consulting-Specifying Engineers recent publication (www.csemag.com), provided the top 10 HVAC systems and BAS challenges.  The top challenge, comprising 79% of respondents, is the inadequate budget for a good design. Conversely, this same research shows that 96% of specifying engineers can agree that product quality is paramount when comparing products, above all else; these are the engineers that are hired for their expertise to ultimately design and specify products to accompany the design, to meet an owner’s and/or architects’ goals.  Yet, here we are.  A battle between the desire to specify based on quality but ultimately being sold on what is cheapest.

So, how does a whole industry change?  Perhaps by “eating the elephant, one bite at a time” as they say.  One often overlooked and unquestioned factor is that of aftermarket and post install support.  It’s imperative that we all make sure to mention our product’s warranties and service/support on the front end of the process, as the lack of either could potentially be a major headache on the backend.  If I never mentioned Melink’s warranties/service in my discussions, they would never get asked about; this is shocking.  A 2016 McKinsey study proves that service and support reign most important in terms of purchasing factors


  2016 McKinsey Study – “How to Unlock Growth in the Largest Account.” 

Hayden Groves, also harps on warranties/support.  He said, “You should look for manufacturers’ warranty too. If a manufacturer gives you a minimum standard of a year but somebody else gives you five years, that’s a huge belief in that piece of equipment”, says Hayden.  Speaking of Rolls Royce…

“The quality is remembered long after the price is forgotten.” – Sir Henry Royce of Rolls Royce

*Value Engineering = “Cost Cutting”

CITATIONS

  1. Pelliccione, Amanda. “2019 HVAC & Building Automation Systems Study.” Www.csemag.com , Equal Opportunity Publications, Inc, 16 Jan. 2019, bt.e-ditionsbyfry.com/publication/?i=559857.

Melink HQ2 – Our Zero Energy Vision & Strategic Plan

Posted on by Lindsey Burbee

Melink’s second headquarters in Milford, Ohio will be one of the greenest buildings in the world.  Not only will it double the office and manufacturing space of our current 30,000 square-feet facility, it will serve as a model on how to design and construct affordable zero-energy buildings (ZEB) of the future.  Why is this so important?

Commercial buildings and homes consume over 60% of the energy in the U.S., and therefore, represent a majority of our country’s carbon footprint.  Though the building industry is on a path to achieve zero-energy on all new construction by the year 2030, it will be very difficult to convert the millions of existing buildings to zero-energy before 2050.

Unfortunately, because of global climate change, we may not be able to wait that long.  We need cost-effective solutions now.  The 17 hottest years on record have occurred over the last 18 years and the trend is getting worse over time.  Climate disasters from floods to fires are becoming more frequent and severe as a result.  In fact, more and more scientists are saying this could become an existential threat.

Yes, solar and wind power have gone mainstream over the last 10 years and that is good news.  And many utilities, businesses, schools, and government entities are starting to jump on the bandwagon.  But renewable energy still only makes up about 20% of our country’s energy mix.  Coal, natural gas, oil, and nuclear make up the rest.  We need to go from 20% to 80% renewables within the next 10-20 years.

One way to speed adoption is not wait for fickle governments and regulated utilities to solve this problem.  It’s time for the business sector to lead and create the clean energy economy of the 21st Century.  This means small, medium, and large companies like ours need to start making the necessary investments now.  Together, we can and must wean ourselves from dirty fossil fuels.

To be clear, this is not just about protecting the environment.  It’s about saving our planet and life as we know it.  It’s about investing in our security, health, and economy.  Who doesn’t want to be safe from more natural disasters in the future?  Who doesn’t want to be secure from flooding coastlines and mass human migration?  And who doesn’t want more jobs and long-term economic growth?

Therefore, this epic problem should also be viewed as a tremendous opportunity for humankind to finally work together on something that is bigger than any one person, political party, or country.  We can either smartly invest trillions of dollars now … or stupidly pay hundreds of trillions and likely lose millions of lives later.  We all know what our children and grandchildren would say.    

What does this have to do with our HQ2?  Everything.  Our new buidling will not be just another green project to say we ‘walk the talk’ at Melink.  Our building will be about showing architects, engineers, and contractors how to design and construct affordable zero-energy buildings of the future.  In other words, it will be about helping revolutionize the building industry for the 21st Century.

How will we accomplish this?

We are going to show that one can invest a small premium of 15-20% over and above a conventional, code-compliant building, and make it zero-energy.  The message being: If Melink can do it, so can everyone else across the country.  I believe developers, architects, and engineers from across the land will want to see and hear how we did this.  I believe our customers will want to see and hear how we did this.  The return on investment will be too good for them not to.

How is this different than HQ1? 

We invested a slightly larger premium of 25% over and above a conventional, code-compliant building.  We also made these investments to an existing building – slowly over time as we could afford them.  This project will show we can do it for an even lower premium if we smartly design the building and take advantage of the most recent innovations.

Features will include several of the best ones we incorporated here in our HQ1.  For example, we will have an even more highly-insulated envelope; we will have the next generation of window and door systems; and we will have a larger solar canopy over the parking lot.

While we can’t share too many details at this time because of the proprietary nature of our innovations, we promise we will push the envelope in ways that will make HQ2 one of the most innovative green buildings on the planet. More details will be provided in the near future.

And we will have many other features that won’t necessarily pertain to energy, but will make the building more comfortable and inspiring.  For example, we will have more open work spaces, more windows and skylights, and a green wall or water feature.  And we will have a museum center to educate visitors on the history of HVAC because to see the future you have to know the past.  Last, we will have a spirit wear shop to reward customers with gifts to memorialize their visit. 

Timewise, the building will be completed by the end of this year and we plan to hold a grand opening in June 2020 where we can publicize our initial findings from our building.

How are we going to pay for HQ2? 

I am taking advantage of what is called a PACE loan to invest in the energy efficiency and renewable energy features of our new building.  In essence the capital is provided upfront and paid back over 25-30 years through an assessment on the property taxes.  This is a great financing tool that we also want to share with the world.

In conclusion, if we’re not part of the solution, who and what are we?  As experts in the building industry, if we don’t help raise the bar, who will and when?  We’re certainly not going to rest on past laurels and let the world pass us by.  We’re going to lead and make a difference.  

PACE Helps Fund Melink HQ2

Posted on by Lindsey Burbee

Word is spreading that we have started construction on one of the greenest buildings in the U.S.  Melink HQ2 will not only expand our corporate campus for future growth, it will also serve as a model for how to design and construct Zero-Energy Buildings.

What is lesser known is how this project is being financed.  Yes, traditional equity and debt will pay for 80% of this $5 million project.  There is no getting around the fact that concrete, steel, and glass costs money and plenty of it.

But the other 20% of this project will be financed by PACE – which stands for Property Accessed Clean Energy.  This is a smart way to fund energy efficiency and renewable energy improvements that might otherwise get axed from consideration because of budget constraints.

Basically, PACE financing is a long-term loan that gets paid over the long term by the energy savings of the above stated improvements.  However, rather than calling it debt, it is recognized as a property tax assessment based on the increased value of the improvements.

In this example, Melink will be able to make $1 million worth of energy efficiency and renewable energy improvements and pay for them gradually over the next 30 years through an assessment on our property taxes.  In other words, the energy savings will cash-flow the incremental value.

This is important for the building industry to understand, including developers, architects, and construction firms.  The reason is, investing up to 20% on energy improvements can make the difference between a zero-energy building and an energy hog that cripples your business.

There is no personal guarantee required and no additional debt on your balance sheet.  You get a fixed rate with fixed payments that can be passed onto your tenants through a triple-net lease.

Moreover, it allows you as the building owner and/or tenant to market your sustainability mindset and accomplishments.  And with growing pressure from customers and employees to be part of the solution, there is no excuse for not doing the right thing.

For our project, Ohio PACE and CenterBank have been indispensable partners to making this financing possible for us.  In your state, it might be someone else.  Either way, if your clients don’t know about this financing tool, you need to educate them on it.

Leading by example is one of the most important things we can do.  And with PACE financing, we hope to show countless other building owners and professionals that zero energy buildings are not only proven and practical, but also profitable.  Today.

Headquarters 2.0

Posted on by Lindsey Burbee

Another major step on our sustainability journey will be the design and construction of a second headquarters in 2018 and 2019. As Melink continues to grow, we will need more office and warehouse space than our first building can provide.

Fortunately, we have the land next to our current HQ1 in which to build HQ2. It will be of a similar size and layout – with the courtyard facing our current building. And like our first building, it will be super-green. Except our second building will take green to a whole new level!

In addition to it serving our future workplace needs, it will serve as a model Zero-Energy Building (ZEB) for architects, engineers, and contractors to learn ZEB best practices. The goal will be to show a cost-benefit analysis that will make other building owners want to emulate and mainstream ZEB.

A growing segment of the building industry is calling for all new buildings to be Zero-Energy Building by the year 2030. We want to show that this can be easily achieved, 10 years ahead of schedule, with a relatively simple design strategy.

Since the largest energy loads in most commercial buildings are lighting, HVAC, and hot water, we will focus on showing how these can be minimized – and offset by a slightly greater amount of solar PV electric generation. Nothing new, except HQ2 will do this better than HQ1.

But the main innovation will be around our super-hybrid geothermal HVAC system. Don’t worry, we’ll figure out a cool brand name for it. The point is, this new system will help advance the energy savings of geothermal without the high cost normally associated with it.

If you think we have received lots of regional and national attention with HQ1, wait until you see what happens with HQ2. Through countless tours and presentations, we will influence thousands of additional building professionals and continue building a green brand unlike any company.

By the way, if any of you would like to work in this new super, high-tech, and beautiful workplace, you better get an electric car first. Because only EVs will be permitted to drive and park on its new green parking lot of the future.

The Melink Energy Revolution is just beginning…

Cultural Rules and the Global Economy

Posted on by Lindsey Burbee

Between Milford, Ohio and Barcelona, Spain we have thousands of miles for you, kilometers for me, gallons of salted water for you, liters for me, pounds of earth for you and kilograms for me…

We have different ways to talk about the same thing, but sometimes for different things we try to use the same way, what is a common mistake…

In terms of business, like the stone falling on the water, any new project will have an infinite number of concentric circles. The stone can be bigger or smaller, but always will generate a wave, big or small as well.

We will always face a person, with a better or worst day, with more or less problems, at home or at work, it doesn’t matter, with a culture, an education, inside of an organization, with a culture and an education, sometimes with people above, sometimes under, sometimes both, in a county of a region in a state of a country integrated with the economy of 28 other countries, with special regulations at different levels, different languages, different cultures…

Too complicated to be true? This is every single day of a sales in a global economy. Sometimes with more or less circles around each project, but this is the cruel reality nonetheless.

In this scenario, it becomes fully necessary having an internal decoder, armed with miles of knowledge, gallons of passion and pounds of personal skills, but also kilometers experience, liters of patients and kilograms of attitude.

How do you face this? It is easy, we build a rules structure trying include what we consider is “general” or “normal”. With these rules we don’t need to think about processes (internal or external) and we can be focused on what it is important: making a global impact.

But what happens when it is out of what we consider “normal” in our home culture, but acceptable in others? Here is when we need to show how flexible we are. It must not be a drama. This is life, different people thinking different. However, it’s important to keep the mission in mind and work towards a common good for ourselves, fellow man, and planet.

Being flexible is not meaning breaking the rules, because within these rules there are some red lines we must never cross in any culture, but we need to adapt ourselves to the situation. If we just can see the shadow of a tree is covering us, we will never be able to see the forest. We need to balance our flexibility with the opportunity cost and the risk it supposes.

So, if you know the rules, because they are yours, and within these rules exist the red lines, it is just about how flexible you are to get the job completed. And everyone has their own way, their own flexibility. There is no miraculous recipe, just training your own flexibility to convince the Polish mechanical contractor and the French end-user with different arguments to be a collective success, because they have diametrically opposed interests for the same product or solution.

To be truly global, you must be global in your thoughts and open to cultural norms wherever you may go.

Be Curious

Posted on by Lindsey Burbee

The older I get and the more people I meet, the more it is confirmed in my mind that curiosity is a highly desirable trait.  Curiosity is a simple recipe for improving intelligence, persevering through hard times, and achieving meaningful goals.  Without curiosity, one is too easily content to settle for the status quo and not grow – personally or professionally.

A couple years ago, an executive friend shared with me that his Fortune 500 company specifically tests for curiosity when recruiting new talent.  The idea is, candidates who demonstrate curiosity are more likely to improve their education, training, and leadership ability.  They never stop reading and asking questions; and become more effective in their line of work as a result.

Of course, being curious is also a great way to build personal friendships and working relationships.  Have you ever met someone who loves to talk about themselves and their weekend, but never turn things around and ask about your kids or whatever?  I would bet they are not on your list of favorite people.  Curious people are naturally more understanding and fun to be with.

Curiosity is getting more attention and research all the time. The most recent issue of Harvard Business Review has made it a feature article as well.  According to HBR, curiosity can improve a firm’s adaptability and performance.

Additionally, this same article posits that curiosity leads to fewer decision-making errors.  A deeper level of analysis and number of options come from asking more questions.  Curiosity also reduces group conflict and leads to more open communication.  And it can mean viewing problems more creatively – with less stress.

Some people assume that asking questions in a meeting shows a lack of understanding, or that they are not as smart as other people in the room.  But the opposite is true.  Asking questions shows you are engaged, that you want to learn, and you care about the end-result.  Don’t be a bump-on-the-log that just attends but does not participate in meetings.  This is a waste of company time.

So be curious!  Every day, with every person, and in every challenge.  Experience the joy of finding new pathways to better relationships and success.  In fact, how can we live our core value of innovation at Melink – without being curious?

Meet Bryan Evenson, Sr. Development Engineer

Posted on by Lindsey Burbee

Business Unit and Job Title

I am a Senior Development Engineer in the Product Development group.

What does your job entail?

When I started at Melink, my job was highly focused on embedded software development for Intelli-Hood.  In short, planning and designing how the Intelli-Hood system should operate and writing all the code for the system.  I was also directing the contracted hardware engineer to ensure the electrical hardware met the needs of the Intelli-Hood system.

Today my job is similar, except I’m no longer purely dedicated to Intelli-Hood.  Now that we have Evan Risley as an employee, we’re doing our hardware designs in-house instead of hiring a contractor.

What did you do before coming to Melink?

I worked for about nine years as an embedded software engineer for a military contractor in the Cincinnati area.  It was a great opportunity to work on some very interesting projects.  Unfortunately, the company shut down due to an acquisition, which led me to finding an opportunity here at Melink.

What is your favorite aspect of working at Melink?

My favorite aspect is the freedom I have in my job at Melink.  This is especially apparent to me when I compare my work life at Melink to my last job.

What do you like to do in your time off?

For some reason I seem to enjoy hobbies that take a long time and has an unknown outcome.  I do a little home gardening.  I don’t yield much for vegetables from my garden, but I’d say most of the worth is in teaching my kids that vegetables come from the ground and not the supermarket.

I’ve also enjoy homebrewing, which is a fantastic hobby in which you can get as technical as you want to get.  I think I’ve learned more about water chemistry through homebrewing than I did through either my high school or college chemistry classes.

 

 

Meet Adam Householder, Intelli-Hood Sales Engineer

Posted on by Lindsey Burbee

Business Unit and Job Title

Sales Engineer with Intelli-Hood

What does your job entail?

I am part of a Melink’s Sales Engineering Team. I work to develop Intelli-Hood’s western market presence within New Construction specifications as well as, manage retro-fit opportunities across corporate dining facilities, restaurants, and amusement venues.

What is your personal philosophy?

“If you always do what you’ve always done, you’ll always be where you’ve always been.”

What did you do before coming to Melink?

I was a Chemical Sales Engineer for wastewater, boilers, and cooling towers working to improve operations and reduce cost through chemical solutions. I focused on wastewater minimization and reuse, energy efficiency, and regulatory compliance.

What is your favorite aspect of working at Melink?

Melink has a very open, inviting, and transparent culture. Everyone at Melink is working to better the company in their own way and grow as an owner.

What do you like to do in your time off?

I love going to the pool and watching sports. I’m very excited about a MLS team coming to Cincinnati and the 2018 World Cup.

Tell us something that might surprise us about you.

I am related to Abraham Lincoln.

What are you most proud of?

My education and my family.

What are your hopes for our industry?

I hope Melink can set the standard for demand control kitchen ventilation code across the world.

Motto or personal mantra?

Yesterday’s success is today’s expectation.

Do you collect anything?

Soccer Jerseys.

We Just Became An ESOP….But What Does That Mean?

Posted on by Lindsey Burbee

We want you to join our team. Not only is it a special place to work, Melink became an Employee Stock Ownership Plan (ESOP) in 2018 and here’s what that means to you as an employee of Melink.

Melink is unique. An ESOP is a rare and valuable benefit. Melink offers this unusual opportunity for employee wealth building.

Another unique feature at Melink is that it is provided to employees with no out-of-pocket cost.  And is a qualified defined contribution retirement plan that is invested primarily in the common stock of the sponsoring company. Unlike a 401k plan, which requires an employee to contribute his or her own money, there’s no cost to employees.

Melink’s ESOP directly correlates to our company culture.  We act like a start up every day and our ESOP helps us to further build our ownership culture that rewards people both monetarily and intrinsically.  Employees are part of something bigger at Melink, because everyone is working to build his or her (and everyone else’s) successful future.  Increased company performance typically leads to a higher share price and therefore a higher balance in employee ESOP accounts. Simply put, when the company does better so will our employees. The ESOP plan provides a return on their sweat equity.

At Melink, we value our employees’ ideas, opinions and inputs to successfully serve our customers and growing the business.  Melink is building and sustaining an environment that fosters an ownership culture.

Sustaining A Great Place To Work

Posted on by Lindsey Burbee

During almost every interview or conversation I have with a non-Melinker, I am asked why I love Melink. My response is always the same, the employees!I am grateful for the “Good Mornings” as employees pass my office, to hear Lorie’s laughter, the conversations at the coffee pot, and sharing thoughts and ideas with my teams.  If you know Melink, you know that we are a leader in energy-efficiency and sustainability practices, but our biggest asset and greatest advantage is our employees.

Every year, one of our top strategic objectives is to ensure our organization is considered a Great Place to Work.  I am proud to say that for the last 2 years we have accomplished that goal! It’s very gratifying to know that 93% of our employees told the institute they feel management is honest and ethical in its business practices. What’s more, 96% indicated they have great pride in who we are and what we do!

So, how do we sustain and keep that momentum?

We have to be transparent about our goals and actions, and very intentional about making sure we are meeting the needs of our employees and providing a satisfying work life, which can certainly be tricky with half of our employees being remotely located across the world. That is why I love Springtime at Melink as we approach our Annual Company Meeting.  This is our own version of a big Family Reunion! We get the chance to be together in one and ensure all voices are heard. All employees gather at our headquarters in Milford, Ohio to reconnect (or meet for the first time!), catch up, and learn more about each other.  We share thoughts, conduct training, share our hopes and concerns for the coming year, and of course have fun!  We will beat up new processes, challenge each other to meet our customer needs, and focus on delivering the best results to achieve our annual and strategic goals. It is an all-hands-on-deck, no holding anything back type of week!

Our 2018 meeting is right around the corner and the planning is almost finished. Food has been ordered, hotels confirmed, flights are scheduled, and agendas finalized. Our remote employees will start to arrive tomorrow. Our days may be packed with educational sessions, brainstorming meetings, internal presentations, and forecasting, but we have plenty of fun planned too!  This year we are excited to have Scott Tallman share his BBQing talents for a cookout, and enjoy a dinner cruise down the Ohio River (thanks Lorie!).

The energy is building and we will soon conduct our survey again. How did we measure up? How do we impact our employees? How do we continue to keep them engaged? While I have a good pulse on where we stand, I can’t wait to show the world once again how Melink stacks up as a Great Place To Work!