When Active Air Rentals first decided to rent air conditioners in 1972, it was considered a crazy idea.
Fast forward to 2014 and the company’s diverse customer base is still growing. CCN discovers the fast-paced and dynamic world of temporary heating, cooling and power solutions in this interview with Active Air director, Brad Sweeney.
Active Air Rentals is a family business that was established by Sweeney’s father, Jim Sweeney, more than 40 years ago.
“It was the first company in Australia to rent air conditioners,” Brad Sweeney says.
Today, the market is a little more crowded but the demand for temporary heating, cooling and power solutions is on the rise.
“We have had consistent growth since we began and our fleet of equipment is constantly growing as well,” Sweeney says.
“Last year alone we spent $2 million on new equipment and 80 per cent of that spend is directed toward solutions above 21 kW.
“When I joined the company 15 years ago, we only had branches in Sydney and Melbourne. Today there are six branches and we are looking to set up regional offices outside of the capital cities to support the mining industry in Queensland and Western Australia.”
Driving the market is a customer base that continues to diversify, with Active Air constantly creating new solutions to meet client demand.
Not surprisingly, solutions are becoming increasingly customised and innovations such as “hot tapping” are becoming the norm.
“We deal with the military, mining industry, emergency services, hospitals and laboratories. And, of course, there are the more traditional industries such as construction, manufacturing and building management,” Sweeney explains.
“One of the fastest growing segments of the market is the events industry, which has really matured in the last 10 years.”
As a result, Active Air Rentals is providing solutions for high profile events such as the Sydney Festival and Australian Open Tennis Championship.
“With such a broad customer base, agility is important. We need to be flexible and able to respond to the market quickly,” Sweeney says.
“We need to be able to change direction after one meeting, not have five chains of command.”
This is one reason why Sweeney has kept staff numbers to a minimum.
The company’s 35 permanent staff are made up of fridgies, project managers, diesel mechanics and electricians.
“We use subcontractors for everything else to maintain versatility. Also, we try to embrace the small, family business culture because it has always been, first and foremost, a family business,” Sweeney says.
“We have a lot of long term staff. Seven members of the team have been with the company for more than 15 years.”
Subcontractors are also necessary because this is a company that must be ready to swing into action 24/7, 365 days of the year.
“The Rural Fire Service is one of our biggest clients so if there is a disaster we need to be ready to set up a 500 man camp at anytime of the day. We were extremely busy during the Queensland floods,” Sweeney says.
Fast response times aren’t restricted to emergency services.
“If a chiller fails and is either not working or limping along at a reduced capacity, then that capacity needs to be supplemented as soon as possible to minimise operational disruptions. We are dealing with expensive machinery and it is always time critical,” he says.
When the Royal Prince Alfred Hospital in Sydney needed a supplementary chiller, Sweeney says the Active Air team were on site at five in the morning to minimise disruption.
“We craned in a 750 kW chiller and 500 kVa generator,” he says.
“Temporary cooling solutions need to be as good as a permanent installation.”
Increasingly, customers are choosing a long term lease over buying, according to Sweeney.
“Often it is more cost effective to lease,” he says.
“Not only is leasing tax deductible but we manage the ongoing maintenance and it means the client doesn’t need to pay dedicated staff to maintain the equipment.
“Every situation is different which is why we try to partner with our clients to find the right solution.
“For example, we have accounts where we only charge for the summer months but the equipment stays on site all year.
“This means the customer isn’t paying for the same installation every time.”
Another area of the market that continues to grow is disaster recovery and contingency planning.
Just recently, Active Air completed a contingency plan for the Sydney Opera House.
“We deal with all parts of the business from IT managers to facilities managers. It really depends on the project,” he says.
IT is another mission critical part of the business.
“One of our customers, a major electrical company, needed to test its new server room and data centre’s HVAC system but how could they do this when the servers weren’t installed yet?” Sweeney says.
“We installed 66 electric blower heaters which produced a massive 1980 kW of heating.
“After three weeks and plenty of hot air the company had thoroughly tested its HVAC system.”
In addition to the growing range of applications that have emerged for Active Air’s equipment, Sweeney said clients are also requesting “green” solutions.
“Sustainability has become an important issue. Customers are much more aware which is why we have a sub fleet of bio-diesel generators,” he says.
“Also part of designing a good system is being energy efficient. A smart installation equals big energy savings. It’s a smart approach to take anyway.”
From its humble beginnings installing air conditioners and manufacturing sheet metal, Active Air Rentals has certainly evolved.
Recognising that ideas are in high demand, Sweeney visits the United States often to research customised designs.
As well as travelling overseas, Sweeney visits each branch in Australia every six weeks.
He doesn’t mind working odd hours as he is passionate about the business.
“I was drawn to the business from a young age and spent my school holidays here cleaning and doing odd jobs,” Sweeney says.
This enthusiasm led him to quit university at the age of 21.
“I was halfway through a business degree but really I just wanted to join the family business. I definitely preferred it to studying,” he says.
Key market trends for 2014
Changing weather conditions, quick-response back-up plans, sustainability and new technology are all impacting the temporary heating, cooling and power market.
Heat waves are becoming more frequent in Australia, increasing the pressure on building HVAC systems. “Some facilities managers are opting to purchase back-up portable air conditioners and expect to just plug and play,” says Active Air Rentals director, Brad Sweeney.
“However, incorrect installations can lead to hot air escaping which further increases the temperature. This leads to demand for more cold air which means more air conditioners, more power and more space leading to a negative heat spiral.
“We also expect the trend of facilities managers developing quick response back-up plans with temporary air conditioning suppliers to continue.” Innovative products from the likes of Daikin and Samsung are also impacting the market.
“We expect these innovations to be adapted for the temporary commercial markets."
If you would like your company or director profiled email sandravandijk@yaffa.com.au