Industry veteran Rudi Rudischhauser talks to Sandra Van Dijk about the launch of his very own company, ColdWorks, which is providing chillers customised for the Australian market.
After 11 years as managing director of Bitzer Australia, industry veteran Rudi Rudischhauser has gone out on his own to establish a new company called ColdWorks.
The goal is to build a sound product portfolio of chillers and to back up the company’s service delivery with great technical support.
“We have great products but business isn’t just about products, it's about building solid relationships,” Rudischhauser says. “Anyone can source anything from anywhere but a good business relationship is what sets you apart from others. It's about honesty, passion and reliability.”
Anyone who has met Rudischhauser will know he has plenty of passion and over the years has developed fond memories of the local HVAC&R industry.
“My years at Bitzer were some of the best years of my life,” he says, comparing the industry to the old Eagles song Hotel California. “You can check in, but you can never leave,” he jokes.
Rudischhauser has great memories of Bitzer, saying the company has “fantastic products” and good leadership in its owner, Peter Schaufler. “Mr Schaufler gave me the trust and freedom to be a true entrepreneur,” he says.
With the support of a great team, Rudischhauser doubled the turnover at Bitzer during his tenure. However, despite working in such a great environment, Rudischhauser says he knew that the time had come for him to start his own business.
It’s a long-held dream that took courage to finally put into action.
“This is something I have always wanted to do,” he says. “My father had his own business and I have always wanted to shape my own destiny. I want to create something that I can be proud of and possibly pass on to my children at some stage.
“Of course, it was not an easy decision to commit my savings and jump into the cold water but I have great support from my business partners and family.”
Rudischhauser began his career as an accountant, although he says he wishes he had studied engineering. He went straight from school into the army before working in the pharmaceutical industry.
“It is true I am a number cruncher by profession and that is where I was able to learn how to make decisions based on analysis,” he says.
“But I soon realised I didn’t want to just prepare the briefs to support decisions – I wanted to be the one making the decisions.
“This made me a novice to HVAC&R in
the beginning but I have always been driven by my passion to understand products
and applications.”
Rudischhauser says being a novice has its advantages. “Sometimes it is actually an advantage to be unhindered by knowledge because you can ask ‘stupid’ questions, which will sometimes hit the weak spot.”
The global warming challenge is one issue that has been at the forefront of his activities in the HVAC&R industry.
A long-standing supporter of CO2 as an effective refrigerant, Rudischhauser says global warming has raised environmental consciousness and allowed industry to explore opportunities using alternatives.
To encourage CO2 take-up, Rudischhauser worked with industry to build a training centre and the very first curriculum on carbon dioxide was developed in partnership with TAFE.
“I am proud to say that today CO2 is a mainstream application for low temperature refrigeration in Australian supermarkets,” he says. “Of course, there is not one solution which fits all applications but I expect to see the development of more alternative solutions to mitigate global warming in the next few years.
“The carbon levy is certainly accelerating the move towards less damaging greenhouse gases and greater energy efficiency to reduce operating costs. I don’t like additional taxes, but if you want to change behaviour then hip pocket pressure is always the most effective.”
This isn’t the only change Rudischhauser has noticed during his time in HVAC&R: he has also seen increased demand for one-stop-shop solutions.
He attributes this to a squeeze on margins in all stages of the supply chain from design through to production and installation.
“Nobody can afford safety margins anymore, whether it be in a technical sense, in the financial area or during the installation process,” he says.
“This is why complete packages that are factory manufactured and easy to install are so popular. It reduces logistics, production errors and on-site cost.
“With increased standardisation we increase volume and decrease cost. The high cost of manufacturing combined with a strong Australian dollar is driving global outsourcing. This is a major concern to me because as a nation Australia is becoming too dependent on its mining sector.”
Rudischhauser says he likes how the Australian HVAC&R industry is still characterised by small to medium sized companies.
“I enjoy dealing with people and being able to interact with owner-operated businesses.
There is a lot of personal satisfaction in being able to contribute to a customer’s success.
“It isn’t just about closing the deal – the personal connection is the cream on the cake of doing business.”
With the world getting smaller and moving faster, Rudischhauser says size no longer matters.
“What a big company gains in purchasing power, it loses in bureaucracy and the heavy burden of compliance; it loses a lot of flexibility. Global communication allows us to compare product specifications and prices from all over the world to get the best deal.
“But all this has done is turn products into commodities. This means that the distinguishing factors are the soft factors like good old fashioned customer service and reliability.”
Rudischhauser says this is the approach he will be taking with his new company.
He has teamed up with a renowned chiller factory in China, which has been established for 30 years and is led by a Hong Kong-Chinese marine engineer.
The company, Cold Magic, sells custom-made high end chillers that have been fine-tuned to meet the tough demands of the harsh Australian climate.
The products also comply with Australian standards such as AS3000 and other local safety codes.
“With Cold Magic I have found the perfect partner,” Rudischhauser says.
“This isn’t a typical Chinese company characterised by fast growth, high volatility and changing staff.
“Cold Magic has grown steadily during its time in Hong Kong before moving into Guangdong province and setting up two factories.”
Rudischhauser says a third factory is under construction and will employ, in stages, about 2000 staff.
“What I like most is that I have found a partner committed to quality,” he says. “This filters down to every operator and the team is happy to customise products according to customer demand.
“It’s a nice change to the usual mainland corporates who do not care for small markets like Australia.”
Rudischhauser says a range of factors influenced his decision to move into the chiller business.
He admits it is a crowded market but believes there is always room for quality, honesty and good products.
“I am surprised and very pleased by the reception I have had in the market so far.
“The introduction of the carbon levy is turning big direct expansion systems towards natural refrigerants or critically charged secondary systems, which is part
of the reason why I decided to venture
into chillers.”
It is still early days with Rudischhauser admitting his resources are limited.
“I am finalising product brochures and getting the website operational but it’s one step at a time. I am not a patient person by nature but I understand that a big bang approach isn’t the way I want to start my business.
“I want to be here for a long time and would prefer to build the business at a healthy pace. Also, I have a reputation to lose and I don’t want to put that in jeopardy by shooting from the hip.”
Rudischhauser’s long term goal is to build a sound product portfolio of chillers and prove to the market that “we are reliable”.
“I will continue to listen to the market and stay at the forefront of technical developments,” he says.
