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Q&A UNLOCKING ENERGY SAVINGS Omnia Halawani, GRFN Global PERSPECTIVE COMBATING THERMAL DISCOMFORT Andrew Martin, Marley Engineered Products THE BAFFLEMENT SURROUNDING SPLITS SPLIT SYSTEMS ARE ANYTHING BUT THE OUTLIERS IN THE CLIMATE CHANGE MITIGATION NARRATIVE BARAKAH PLANT POWERS UAE’S NET ZERO VISION TABREED COMPLETES ‘VERIFIED CARBON STANDARD’ PROGRAMME September 2024 US$ PUBLICATION LICENSED BY IMPZ US$ PUBLICATION LICENSED BY IMPZ US$ PUBLICATION LICENSED BY IMPZ US$ PUBLICATION LICENSED BY IMPZ NEWS • Industrial Louvers introduces the VS5321 • Wildfires spark advocacy for better IAQ, improved building codes • Eurovent Summit 2025 to host over 300 HVACR stakeholders • ASHRAE introduces first batch of Certified Decarbonization Professionals GUEST COLUMNS MONEY MATTERS Vasudevan Kidambi, Navo Management Consultants MACRO-ECONOMIC ANALYSIS Krishnan Unni Madathil, Bin Khadim, Radha & Co Chartered Accountants FILTER FOCUS Dr Iyad Al-Attar, independent air filtration consultantTHE EVENT FOR HVACR / FEB 10-12 OrlandoVOL. 19 NO. 09 SEPTEMBER 2024 Q&A ON BEING ABLE TO SAY, “AN ENERGY SAVING POTENTIAL EXISTS Omnia Halawani, Co-Founder and Co-CEO, GRFN Global, discusses the firm’s newly launched energy benchmarking tool MONEY MATTERS UNLOCKING HIDDEN VALUE IN BUSINESSES Vasudevan Kidambi, Managing Director, Navo Management Consultants, says correctly identifying the problem ensures a pathway to success MACRO-ECONOMIC ANALYSIS THE REALITY OF THE “SILVER DIVIDEND” Krishnan Unni Madathi, Auditor, Bin Khadim, Radha & Co. Chartered Accountants, discusses the prospects for the IAQ sector 06 10 24 www.ccme.news 3 REGULARS 26 Regional News 34 Global News 42 Quoteyard 04 eDItor'S note Leaky buildings COVER STORY page Industry stakeholders discuss the flexibility and, hence, the appeal” of split systems FILTER FOCUS THE FUTURE OF SUSTAINABLE LIVING… THROUGH SYSTEM THINKING Dr. Iyad Al-Attar, Independent Air filtration Consultant, warns that ignoring system thinking would stall sustainable living PERSPECTIVE ELIMINATING DRAUGHTS Andrew Martin, Senior Product Manager, Marley Engineered Products, says fan-forced heaters present themselves as effective thermal comfort solutions 12 16 The stickiness of Split SystemsSeptember 2024 4 A SHRAE, in releasing the latest version of its residential energy performance standard – ASHRAE/IES Std 90.2 – this month, has strengthened the focus on air leakage. In other words, the new version has increased stringency to reduce air leakage and improve energy efficiency. This is an important development, given the severity of impact of air leakage on building performance. Air leakage, as an aspect, gets ignored in many projects, and the result is valuable thermal energy lost to the outdoors, as evidenced by numerous blower door tests, and by the well-known ASTM E783. Even if discounting for negative pressure, ignoring air leakage is a crime, simple as that. It flies against the face of the growing clamour for more efficient HVAC equipment and the many, many hours spent debating climate change mitigation in fora the world over. Plugging air leakage is as close as it gets to a low- hanging-fruit solution. We see glitzy buildings sprouting on the global landscape, the Middle East including. The question is, ‘How many of them have considered function over form?’ In fact, more questions – that are even specific in nature: In how many buildings have the multiple stakeholders involved worked in an integrated manner? Did the building owners – the engineering reps of the owners, that is – get into a huddle with architects, MEP consultants, FM teams, façade engineers and suppliers of fenestration in the pre- design stage? Did the owners choose price over quality? Did the contractors follow the precise building specifications and install door jambs and window frames in a fail-proof manner? Or, did they hurry through the installation in the face of project deadline pressures, resulting in incriminating gaps. And equally important, did the buildings go through proper commissioning procedures with regard to the building envelope, among other aspects? Now, many of the above questions would likely put building owners as well as their financial controllers in a state of unease, for it seems like money would need to be spent. And yet, the very same controllers would be the first to come forward and embrace the practice of mitigating air leakage, if only they were to understand in clear financial terms the benefits of plugging the leaks. And hand in hand with that, would it not be laudable if air leakage tests were made mandatory just like tests to ascertain the structural integrity of a building or fire safety tests? Indeed, blower door tests ought to be part of a code enforcement regimen. Overall, the sooner we recognise the indispensable nature of plugging the gaps, the closer we will get to climate change mitigation – and lower Total Cost of Ownership, as a collateral benefit. Jeremy McDonald Principal of Guth DeConzo Consulting Engineers, in New York, writes on IAQ and building tracing. He served as the technical consultant to the New York State Energy Research and Development Authority in development of an IAQ guideline for Higher Education in NY: “Covid-19 Response Guide, State University of New York”. Dan Mizesko Managing Partner/President, US Chiller Services International, writes on issues relating to chilled water systems, including operation & maintenance. Dalip Singh Senior Technical Analyst, AHRI MENA, writes on HVACR-specific regulation issues. Dr Iyad Al-Attar Independent air filtration consultant, writes on specific science and technology issues relating to Indoor Air Quality, including airborne particles. Omnia Halawani Co-Founder & Co-CEO, GRFN Global, writes on MEP consultancy- related issues. Krishnan Unni Madathil Auditor, Bin Khadim, Radha & Co. Chartered Accountants, carrying out an analysis of the market, writes on business opportunities for the HVACR industry. Editor Surendar Balakrishnan surendar@cpi-industry.com Features Writer Hamna Sheikh hamna@cpi-industry.com Online & Social Media Nivedita Vijayan marketing@cpi-industry.com Advertising Enquiries Frédéric Paillé +971 50 7147204 fred@cpi-industry.com Judy Wang Our representative in Asia (except India) +852 307 80 826 judywang2000@vip.126.com Deep Karani Our representative in North America +1 365 885-6849 deep.karani@cpimediagroup.com Design Head Ulysses Galgo uly@cpi-industry.com Webmaster Chris Lopez chris@cpi-industry.com Database/Subscriptions Manager Purwanti Srirejeki purwanti@cpi-industry.com Published by Founder, CPI Media Group Dominic De Sousa (1959-2015) Co-Founder & Commercial Director Frédéric Paillé fred@cpi-industry.com EMPANELLED COLUMNISTSCo-Founder & Editorial Director Surendar Balakrishnan surendar@cpi-industry.com Head Office PO Box 13700, Dubai, UAE Web: www.cpi-industry.com Printed by: Jaguar Printing Press L.L.C © Copyright 2024 CPI Industry. All rights reserved. While the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein. Leaky buildings — flying against the face of climate change mitigation efforts Visit our website: climatecontrolme.com/digital Also available at Get the next issue of Climate Control Middle Eastearly! Surendar Balakrishnan Editor @BSurendar_HVACR Climate Control Middle East magazine proudly supports the UAE President’s initiative of extending the ‘Year of Sustainability’ to the whole of 2024. EDITOR’S NOTESeptember 2024 6 M AXIMISING financial growth and efficiency is a top priority for businesses seeking to achieve long-term success. "The Art of Problem Finding" is a powerful tool for uncovering hidden value and optimising financial performance. This article explores how adopting a problem-finding mindset can help businesses unlock hidden value and drive financial growth, illustrated through practical, real-life scenarii. Shifting the focus: Beyond traditional financial metrics Problem-finding involves exploring beyond traditional financial metrics and delving into deeper aspects of business operations to identify opportunities for value creation. While financial reports and performance indicators provide valuable insights, they may not reveal the full picture of financial potential. Problem- finding encourages businesses to look beyond the obvious and discover hidden value that can drive financial growth. Take, for instance, a case from a trading company specialising in luxury goods. Despite enjoying a strong gross profit margin, the company noticed a discrepancy between gross profits and net profits. A problem-finding approach led to a deep dive into the financials, uncovering Vasudevan Kidambi is Managing Director, Navo Management Consultants and Director, Zenesis Corp. He is a Certified Independent Director and acclaimed author of books on Generative AI and corporate strategy. He may be reached at vasudevan.k@navoinc.com MONEY MATTERS The trick is in adopting a problem-finding approach, as a precursor to solving it, says Vasudevan Kidambi10 th EDITION OFFICIAL PUBLICATIONPRODUCER THEME: A need for transformational change in District Cooling for Saudi Arabia to raise the bar on decarbonising existing cities and to get things right from the get-go in new cities www.ccme.news/event/dc-dialogue 2 DAY SESSION ON DISTRICT COOLING 15 OCTOBER 2024 Crowne Plaza Minhal, Riyadh, KingdomofSaudiArabia OFFICIAL PUBLICATIONPRODUCER THEME: Getting things right from the get-go in the new wave of mega developments in the Kingdom of Saudi Arabia 1 DAY SESSION ON BROAD HVAC APPROACHES 14 OCTOBER 2024 Crowne Plaza Minhal, Riyadh, KingdomofSaudiArabia www. ccme.news/event/c3 DIAMOND SPONSORS STRATEGIC HVACR RECRUITMENT PARTNERSTRATEGIC KNOWLEDGE PARTNERS BRONZE SPONSORS PRINCIPAL STRATEGIC KNOWLEDGE PARTNER ASSOCIATE SPONSOR EXHIBITORS SILVER SPONSOR BRONZE SPONSORS STRATEGIC HVACR RECRUITMENT PARTNERSTRATEGIC KNOWLEDGE PARTNERSPRINCIPAL STRATEGIC KNOWLEDGE PARTNER DIAMOND SPONSORSSeptember 2024 8 MONEY MATTERS that routine bank charges and payment processing fees were silently eroding the company's profitability. By renegotiating these fees and restructuring payment terms, the company saved substantial costs, directly improving its bottom line. Unlocking customer-centric insights One approach to unlocking hidden value is to analyse customer data and market trends. Understanding customer preferences, behaviours and pain points can provide valuable insights into opportunities for new products or services. For example, in the jewellery industry, a retailer had been offering significant discounts, often due to sales closing pressures from the salespeople. Since the average ticket size of each transaction was quite high, the management often gave in to these pressures. However, a problem-finding approach revealed that the key issue was a lack of understanding of the impact of a one per cent discount. If the salespeople had employed more convincing communication techniques to limit the discounting rate, the company could have significantly increased its net profits due to the value of every one per cent saved. By recalibrating the incentive scheme to benefit both the company and the salespeople, the retailer dramatically improved net profits. The sales team also benefited, going home happily with hefty incentive amounts, creating a win- win situation for all involved. In another scenario, a facilities management company analysed customer feedback and operational data to identify pain points in service delivery. The data highlighted a pattern where maintenance requests were being delayed due to inefficient scheduling practices. By restructuring the workflow and prioritising urgent requests, the company improved service delivery times, leading to higher customer satisfaction and, consequently, increased contract renewals and upsells. Internal operations: A goldmine waiting to be explored Another valuable source of hidden value is internal operational data. Analysing data from various departments, such as sales, marketing and operations, can uncover inefficiencies and areas for improvement. For example, a detailed analysis of sales data at a tyre distribution company revealed that certain products were consistently underperforming in specific regions. Further investigation showed that these regions had unique climate conditions that the tyres were not suited for. By introducing a product line better suited to these conditions, the company was able to boost sales and improve customer satisfaction. Similarly, a leading company in the facility management sector faced high operational costs due to leasing its fleet of vehicles. Upon reviewing the cost structure, a problem-finding approach suggested purchasing the vehicles instead of leasing them. This change not only reduced long-term costs but also provided the added benefit of branding the vehicles, contributing to nearly a million dollars' worth of brand visibility. Exploring new business models: Think beyond the status quo Problem-finding also involves exploring new business models and revenue opportunities. Traditional approaches may focus on incremental improvements to existing products or services, but problem-finding encourages businesses to think creatively about new possibilities. For example, a retail company that traditionally sold products exclusively through brick-and-mortar stores explored online sales channels as part of a problem-finding exercise. This shift not only opened up a new revenue stream but also allowed the company to reach a broader customer base, significantly boosting its financial performance. Fostering a culture of innovation and experimentation To effectively unlock hidden value, businesses should foster a culture of innovation and experimentation. Encouraging employees to explore new ideas, challenge existing processes and experiment with different approaches can lead to valuable discoveries. A software company, for example, held regular innovation workshops that encouraged cross-functional teams to collaborate on solving persistent customer issues. This initiative led to the development of a new feature that became a unique selling point for the company, driving customer acquisition and retention. Leveraging advanced analytics for deeper insights Leveraging advanced analytics and data science techniques can further enhance the ability to identify hidden value. Data analytics tools and machine learning algorithms can analyse vast volumes of data to uncover patterns and trends that may not be immediately visible. For example, a retail chain used predictive analytics to forecast seasonal demand for specific products, allowing them to optimise inventory levels and reduce overstock costs. Similarly, a manufacturing company utilised business intelligence tools to analyse energy consumption patterns, identifying opportunities for significant cost savings by optimising their production schedule. Conclusion: Embrace problem-finding to unlock financial growth In summary, adopting a problem- finding mindset can help businesses unlock hidden value and drive financial growth. By analysing customer data and internal operations, exploring new business models and fostering a culture of innovation, businesses can uncover opportunities for improvement and enhance financial performance. Embracing problem-finding enables organisations to discover and capitalise on hidden value that traditional approaches may overlook. In a world where every financial advantage counts, the ability to uncover and capitalise on hidden value can make the difference between staying competitive and falling behind. CPI Industry accepts no liability for the views or opinions expressed in this column, or for the consequences of any actions taken on the basis of the information provided here.OFFICIAL PUBLICATIONPRODUCER 16 OCTOBER 2024 Crowne Plaza Minhal, Riyadh, KingdomofSaudiArabia climatecontrolawards.com/saudi FOR EDITORIAL-RELATED QUERIES: Surendar Balakrishnan Co-Founder & Editorial Director M: +971 50 509 2457 E: surendar@cpi-industry.com FOR SPONSORSHIP OPPORTUNITIES: Frédéric Paillé Co-Founder and Commercial Director M: +971 50 714 7204 E: fred@cpi-industry.com FOR EVENT AND MARKETING-RELATED QUERIES: Namrata Aswani Strategic Public Affairs Liaison and Events Manager M: +971 50 5522461 E: namrata@cpi-industry.com DIAMOND SPONSORS CATEGORY SPONSORS FROSTCHEM GLOBAL FZE STRATEGIC RECRUITMENT PARTNERMONITORED BYSTRATEGIC KNOWLEDGE PARTNERPRINCIPAL STRATEGIC KNOWLEDGE PARTNERS BRONZE SPONSORSSILVER SPONSORNext >