Tougher standards give Appel Heating and Air Conditioning a boost

APPEL HEATING AND AIR CONDITIONING


Location: 530 S. Range Line Road, Carmel

Phone: 846-0434

E-mail: appel@in.net

Web
site: appelheat.com

Founded: 1948

Founder: Wilbur Appel Sr.

Owners: Kenneth and Scott Appel

Service/product: residential heating
and air
conditioning service and sales

Employees: 20 Revenue (past 12 months): $2.4 million

Date of first profile: Feb. 26, 2004

Business at Carmel-based Appel Heating and Air Conditioning isn’t cooling off, despite the nation’s economic woes. Revenue
continues to increase as the industry becomes more environmentally friendly.

Although the declining economy has caused a slowdown in the new-construction market, co-owner Scott Appel said his company
has survived by standing out from the competition. For example, Appel hired a full-time customer-service employee who calls
150 to 200 customers a month to see how their service went.

"[It’s] a courtesy call back to see if there was something they weren’t happy with," he said. "It’s always nice to get …
feedback."

Despite the economy causing businesses to close throughout the country, Appel said he has not had any serious financial challenges.
Indeed, revenue reached $2.4 million last year, up 18 percent since 2004.

Still, the company has had to deal with changes in the industry. One of the biggest, Appel said, was an increase in equipment
prices as regulators demanded units be more energy-efficient.

About three years ago, the minimum efficiency on cooling units, air conditioners and heat pumps increased from a 10 Seasonal
Energy Efficiency Rating to a 13-boosting prices by about $1,000, he said.

The U.S. Department of Energy required manufacturers to make the change, which was expected to save consumers $1 billion over
the same period, according to the government.

Appel said manufacturers also are phasing out Freon refrigerants and heat pumps, replacing them with Puron as the result of
another government mandate.

"It’s a national and international project," he said.

To accommodate the changes, he said his technicians have received more training to get certified in handling and servicing
Puron-based units.

Despite all these changes, he said his plan was to keep Appel Heating and Air Conditioning doing what it has been doing and
continuing to focus on customer service.

"We’re going to try to keep doing the things that have made us successful for the past 60 years," Appel said. "That’s the
big thing on the short horizon for us. Beyond that, there’s nothing in the works that we’re aware of."