Deal is ‘tremendous' opportunity for enalasys Corp.By RICHARD MONTENEGRO, Staff Writer

April 03, 2001

Calexico — With the weight of a $5 billion multi-national corporation behind it, a company born and bred locally is anticipating a bright future for its revolutionary technology.

Formerly known as Federal Air Conditioning Technologies, Calexico's own enalasys Corp. on Avenida Campillo has executed a marketing and sales agreement with Minneapolis-based Honeywell Home & Building Control, a worldwide leader in heating, ventilation and air-conditioning controls.

The Honeywell-enalasys partnership, according to enalasys Chief Executive Officer Eric Taylor, could result in 150 new local jobs in the next few years as Honeywell promotes and sells enalasys' patented "escanAC," a diagnostic tool used to isolate inefficiencies in home HVAC systems. The device was invented and patented by Taylor's uncle and fully designed, refined, manufactured and distributed from Calexico.

The company's headquarters have since replaced Taylor's former business, Jet Express.

Taylor said last week the relationship between enalasys and Honeywell provides "tremendous" opportunities for his fledgling company.


"We are going to keep manufacturing here and we are considering keeping our call center here," he said. "What we're calling for in the next three to four years is 130 call center people and 20 manufacturing jobs."

Taylor explained the call center will function as a dispatching center to the contractors using enalasys' escanAC.

"The calls come to us and we dispatch the contractor to the job," he said.

There is a small call center now in enalasys' headquarters.

Taylor said one of the goals of enalasys is to create a network of contractors using the device so information collected from the escanAC can be electronically transmitted to individual contractors via the Internet.

It is through Honeywell's reputation and contacts within the HVAC industry that Taylor hopes to create the network of contractors.

"Honeywell has been developing its contractor channels for over 50 years," he said, adding Honeywell brings "immediate credibility to us by introducing us to contractors that will use the product."

Furthermore, Taylor said with Honeywell on board "we've got immediate branding recognition. People know who we are."

What piqued Honeywell's interest more than nine months ago was Taylor's flagship product.

The escanAC, formerly known as the AT-2020, employs capture hoods lined with sensors that are placed over a home's air-conditioning and heating vents to measure such room conditions as exact temperature, humidity and air-flow pressure. Additional sensors are then placed inside and outside the home and at the air-conditioning unit itself.

The information is then collected using a computer program designed by enalasys.

What makes the escanAC unique, Taylor has said, is all the information collected takes one person about an hour to do what prior methods took three people up to 15 hours to accomplish.

After nine months of "due diligence" research by Honeywell on enalasys, an agreement was reached.

Taylor said the agreement not only allows for Honeywell to market and sell the escanAC, but Honeywell committed to buying 100 escanACs at a cost of about $20,000 each, although he said the escanACs aren't really for sale.

"We're not really selling the product out right, we're signing up contractors into a network," Taylor said.

Over the next 30 days, enalasys will be rolling out a number of its devices to contractors in 16 cities.

Most of the product, Taylor said, will be going to the Georgia area, where enalasys officials have signed four contractors and have a pilot program employing the escanAC with Jackson EMC, a utility company serving Georgia and surrounding states.

The mini-call center at the company's Calexico office has been set up to field calls from the Jackson EMC program.

Additionally, Honeywell, which has some 38,000 HVAC contractors it deals with, has already identified 3,000 contractors to which it will push the escanAC.

When asked what Honeywell gets out of its partnership with enalasys, Taylor said Honeywell will receive a 15 to 20 percent cut on each escanAC sold. He added there also is a percentage Honeywell will receive for monitoring and other services enalasys plans to administer.

Taylor's enalasys employs 42 people, more than 20 working out of the Calexico plant.

He said because the company is a national firm, there are enalasys employees working from home offices in San Diego, Northern California, Denver and 10 employees in Atlanta.

Around 30 independent contractors throughout the country are using the escanAC.

Staff Writer Richard Montenegro can be reached at 337-3453.

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