Japan taking the lead in HVAC-R equipment? Daikin to buy Goodman
Japanese has been the leader in ductless split for a long time and they've been using VFD drive in residential units since 1980s. S.Korea's Samsung and LG are also coming in strong in ductless systems.
Are they soon to gain major stakes in ducted systems too?
Rheem/Ruud has been wholy owned by Paloma since 1988
Daikin owns McQuay and it has just announced its intent to buy Goodman for $3.8bn
Daikin also has its eye on assembling at least some of their US market products in the USA.
Didn't Goodman change hands for something like $1.8bn 5 years ago?
Originally Posted by ICanHas
Someone is making a killing off that investment!
yeah, equity firm called Hellman & Friedman
Daikin aims to gain market share in resi & light commercial climate control where Goodman holds a good share.
We're getting better at labor saving manufacturing automation technology so it often makes sense to do certain stages of manufacturing in the US for cost reasons and marketing leverage advantage of "Made in USA". I hear manufacturing cost in China is going up so, setting up new production in China might not be the best idea.
What has that gained them? Rheem makes more in Mexico than anyone! Certainly isn't good for the US Economy!
Originally Posted by ICanHas
Interesting on the Goodman gobble. Wonder if that will change anything with Goodman?
I hadn't heard that about them thinking of buying Goodman also. That is really interesting. All of the "McQuay" stuff now says Daikin McQuay on it. They should just skip that step and put Daikin on it.
Fossil fuel tankless water heaters are quite popular in Japan where demand for hot water is very high for bathing and space needed to support such a need by storage tank type makes them out of question for many homes. Paloma is one of the big players in tankless water heaters. With ownership of well established brand Rheem/Ruud it can distribute Paloma products under Rheem brand. It has gained them access to market place without having to build brand from scratch.
Originally Posted by BaldLoonie
You'll see some Daikin ductless splits but they're far and few in between compared to Sanyo, Mitsubishi Mr. Slim, etc.
Daikin gained access to chiller market with acquisition of McQuay but it is wanting access to residential market in the US where there's large market potential for high efficiency A/C system with incentives, tightening government policies and increasing energy cost.
Instead of having to thrive as an original equipment supplier due to lack of brand recognition sales network in the new market (USA in this case) acquisition of Goodman, it can start selling its product under Goodman name right away as they can use the brand as they please and gain immediate access to Goodman contractor network to sell mini splits through.
While the high $/lb VFD and computer modules can be built in Japan or China, assembling bulky system components in the US using heavily automated production can decrease freight cost and reduce lead time not to mention the marketing leverage advantage of "Made in the USA" label.
As for the US economy, it can reduce trade deficits.
Increasing transportation costs and desire for shorter lead times are bringing heavy manufacturing back into the US.
The high labor cost here keeps automation some of the most advanced in the world.
If the Daikin built Goodman systems do well I suppose it will strengthen the brand, but if it goes the other way, they're back to "Goodman sucks" status.
Have a look at this:
Originally Posted by ryan1088
Daikin's only been around since 2005 or so; so there's still brand building to be done so I believe that's why they left the well recognized McQuay name in it.
Who knows, if the deal goes through Goodman might get renamed Daikin-Goodman..
They're in the refrigerant business as well and plays along side by side with DuPont, Arkema, Honeywell, etc.
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