Addison - Comprehensive Analysis Report
Summary
Addison, a subsidiary of Madison Industries, is a specialized manufacturer of semi-custom commercial heating, ventilation, and air conditioning (HVAC) solutions. The company's core mission, aligned with its parent company, is to innovate for safer, healthier, and more productive indoor environments. Addison is particularly renowned for pioneering and leading the industry in Dedicated Outdoor Air Systems (DOAS), providing high-performance units that deliver fresh air, manage humidity, and ensure optimal building comfort and efficiency across various commercial sectors.
1. Strategic Focus & Objectives
Core Objectives
Addison's primary business objectives revolve around the design and manufacture of semi-custom commercial HVAC solutions, with a strong emphasis on Dedicated Outdoor Air Systems (DOAS). The company is committed to delivering solutions that offer the lowest total cost of ownership, meticulously considering installation, energy consumption, maintenance, and system integration. Its short-term and long-term goals are centered on continuously developing purpose-built solutions engineered for reliability, efficiency, and ease of service.
Specialization Areas
Addison specializes in the pioneering and ongoing development of Dedicated Outdoor Air Systems (DOAS). Its expertise includes innovative HVAC technologies such as the "split system" air conditioning design (pioneered in 1952) and the first commercially available DOAS (developed in 1963). Proprietary technologies like HybridAir, which integrates air, water, and refrigeration, and FrostShield, enabling heat pump operation in cold climates without backup heat, further highlight their unique value proposition.
Target Markets
Addison targets a diverse range of commercial market segments that require enhanced indoor air quality and precise environmental control. Key industries served include offices, educational institutions, retail spaces, and hospitality. The company's market positioning emphasizes delivering advanced solutions that cater to the increasing demand for healthier, safer, and more productive indoor environments.
2. Financial Overview
Funding History
Addison, founded in 1949, was acquired by Madison Industries in October 2018. Prior to this, it was part of the Specified Air Solutions portfolio. Historically, Addison has not raised external funding as an independent entity. Revenue estimates vary, with figures ranging from $20 million to an estimated annual revenue of $86.6 million. The acquisition by Madison Industries positioned Addison within a broader strategic framework, impacting its growth trajectory and access to resources.
3. Product Pipeline
Key Products/Services
Addison continuously innovates its product lines, having developed over eight generations of Dedicated Outdoor Air Systems (DOAS) products.
PR Series Packaged Systems: These are highly configurable packaged systems offering versatility in capacity, airflow, and configuration options.
SA/SC Series (also referred to as MA/MC series): These are modular split systems, providing flexible solutions for various application requirements.
AK Series: This is a compact series designed for specific space-constrained applications.
All series offer configurations including air-source and water-source heat pump options, demonstrating Addison's commitment to adaptable and high-performance solutions.
4. Technology & Innovation
Technology Stack
Addison distinguishes itself through a focus on innovative HVAC technologies and proprietary developments. The company pioneered the "split system" air conditioning design in 1952 and developed the first commercially available Dedicated Outdoor Air System (DOAS) in 1963. Its current proprietary technologies include:
HybridAir: An advanced system that integrates air, water, and refrigeration into a comprehensive air handling solution.
FrostShield: A technology that enables efficient heat pump operation in cold climates, eliminating the need for traditional backup heat sources.
Units are built and tested at a state-of-the-art manufacturing facility in Orlando, Florida. Products feature double-wall foam insulated construction, multi-row DX coils, and scroll compressors, with options for modulating reheat and switchable subcooling circuits, highlighting comprehensive technical capabilities.
5. Leadership & Management
Executive Team
The leadership team at Addison includes:
Jerry McClam: President
Stefan Arnell: Vice President of Finance / Vice President of Operations
Gus Olivera: Vice President of Innovation, also Director of Engineering
Stephen Piccolo: Vice President of Sales
Peter Fung: Director of Sales
Danilo Suansing (Danny Suansing): Director of Research and Development, also Director of Quality & Electrical Engineering
Juan Hincapie: Director of Applications Engineering
Evie Sibert: Director of Marketing
Erin Cashes: Director of Quality
Rich Locario: Director of Technical Support & ACS, also National Service Manager
Beth Wagner: Director of Human Resources
Recent Leadership Changes
Jerry McClam currently serves as the President of Addison. This represents a change from previous reports that indicated Ross Miglio held the position of President. While specific transition dates are not detailed, Jerry McClam is now listed on the company's official staff page.
6. Talent and Growth Indicators
Hiring Trends and Workforce
Addison employs over 350 individuals from more than 27 countries. The company experienced rapid growth in 2018, which led to a doubling of sales and necessitated an accelerated expansion of its team. This growth trajectory is supported by an estimated annual employee growth rate ranging from 8% to 13%, with an estimated revenue per employee of $388,300. Addison fosters a culture that promotes professional advancement, with employees progressing from various roles to management positions, indicative of internal career development and a supportive work environment. The company's website reports an employee count of over 360, demonstrating sustained expansion.
7. Social Media Presence and Engagement
Digital Footprint
Addison maintains an active presence on YouTube, under the handle "@addison3691". The channel features diverse content, including detailed product information, explanations of key unit components, demonstrations of standard operational sequences, and showcases of its HybridAir technology. The company also highlights its quality manufacturing process through videos like "Addison HVAC Quality Built" and communicates its commitment to innovation and reliable performance to its community.
8. Competitive Analysis
Major Competitors
Addison operates within the commercial and industrial HVAC equipment sector, facing competition from various specialized manufacturers.
Scientific Systems: A privately-held company specializing in custom HVAC equipment for industrial machinery, including chillers and air handling units, with a focus on harsh and hazardous environments.
Dehumidifier Corporation of America (DCA): A U.S.-based corporation entirely dedicated to the field of dehumidification, designing and manufacturing industrial-grade dehumidification systems for commercial, industrial, and aquatics applications.
BryAir: A global leader in dehumidification solutions, part of the Pahwa Group. The company specializes in desiccant dehumidifiers and adsorption-based technologies for various industries.
RAAL: A European manufacturer of cooling systems and heat exchangers, offering radiators, oil coolers, air coolers, condensers, and evaporators for agricultural, construction, industrial, and automotive applications.
Donaldson Mexico: A subsidiary of Donaldson Company, a global provider of industrial filtration solutions. It offers dust, smoke, and mist collectors and filters, as well as process filter housings for compressed air, liquids, and steam.
Ingersoll Rand: A multinational company that provides flow creation and industrial products, specializing in air compression systems and related services for a variety of industrial, medical, and energy end markets.
9. Market Analysis
Market Overview
Addison operates within the commercial HVAC market, with a specific focus on dedicated outdoor air and ventilation solutions. The market demand for Addison's products is significantly influenced by the increasing need for healthier, safer, and more productive indoor environments. This drives demand across commercial facilities such as offices, educational institutions, retail outlets, and hospitality venues, where proper ventilation, humidity control, and fresh air supply are crucial.
10. Strategic Partnerships
Addison's most significant strategic partnership is its affiliation with Madison Industries. As a subsidiary, Addison benefits from being part of a global privately held company whose mission is to make the world safer, healthier, and more productive. This allows Addison to leverage Madison Industries' resources and align its product development and market strategies with a broader organizational vision.
11. Operational Insights
Headquartered in Orlando, Florida, Addison operates a sophisticated manufacturing facility dedicated to designing and producing commercial HVAC equipment. The company maintains a strong customer-centric approach, aiming to deliver products that reduce the total cost of ownership through efficient installation, minimized energy consumption, low maintenance requirements, and seamless integration. Addison's operational strength lies in its team, which combines technical expertise with a commitment to developing adaptable systems that address both current and anticipated industry demands.
12. Future Outlook
Strategic Roadmap
Addison's strategic roadmap is focused on maintaining continuous leadership in dedicated outdoor air systems. This involves ongoing innovation in product development, leveraging its proprietary technologies, and expanding its presence in key commercial sectors. The company is poised to capitalize on the sustained demand for advanced indoor air quality solutions, with future initiatives likely concentrating on enhancing energy efficiency, further expanding its semi-custom offerings, and optimizing its manufacturing processes to meet evolving market needs.
