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Q3 2010
In This Issue
Award Winning Buildings
Founding Families Foto
Featured Project
Event Calendar
Featured Partner--Neuco, Inc.
Climate Change (cartoon)
Award Winning Buildings

Each year, BOMA, the Building Owners and Managers Association International, honors the best of the best in commercial buildings through awards known as TOBY® for The Outstanding Building of the Year.

In submitting applications for these awards, the owner has the opportunity to identify products integral to the building's performance, including the energy management and control system.  Four buildings recognized as
Regional award winners in the 2009-2010 TOBY awards were noted as having KMC control systems:


BAC ColonnadeBAC Colonnade

Location: Coral Gables, Florida

A historical (built 1926) 11-story Class A office building of 207,000 square feet

Owner: Cushman &
Wakefield of Florida,

Robert Lopez and his team at Digital Control Systems (Miami) were responsible for the KMC system installation, which manages AHUs, FCUs, VAV boxes, and cooling towers at this historical building.

BAC ColonnadeBridgepoint Square One

Location: Austin, Texas

Description: First of 5 buildings built on 27 acres of natural landscape; 5 stories; 85,000 square feet

Owner: Reit Management & Research LLC

BAC ColonnadeWilliam Kenzo Nakamura Courthouse

Location: Seattle, Washington

Description: First building in the West designed exclusively as a Federal Court House; 13 stories; built 1940, renovated 2007-2009, rededicated June 2009

Owner: General Services Administration

Control Contractors, Inc., a KMC Authorized Installing Contractor, was responsible for the DDC system installation during this historic building's recent renovation.  Nearly 200 KMC BACnet controllers were installed with the TotalControl operator workstation. This building was also recognized for excellence by the Northwest/Arctic Region of the GSA.

AvallonThe Avallon

Location: Austin, Texas

A suburban, Class A office park of 5, 3-story buildings
and 2, 4-level parking garages; 318,217 square feet

Owner: Grubb & Ellis Management Services

Founding Families

The men depicted above are descendants of the two primary company founders:
  • Ken Kreuter (engineering pioneer)
  • Klaus Mueller (production pioneer)
All of these men extend the legacy of our founders through continued contributions to engineering, manufacturing, and executive management of KMC Controls.

(Standing L-R)
Wayne Kehler, Chairman, son-in-law of Ken Kreuter
Paul Kreuter, Chief Engineer, son of Ken Kreuter

Matt Kreuter, Software Engineer, son of Ken Kreuter
Chris Kreuter, VP of Product Design, son of Ken Kreuter
Phil Kreuter, Toolmaker, son of Ken Kreuter
Mark Kreuter, Toolmaker, son of Ken Kreuter
Klaus Mueller Jr, Master Scheduler, son of Klaus Mueller
Joerg Mueller, VP of Manufacturing, son of Klaus Mueller

(Kneeling L-R)
Mitch Kehler, Account Sales Manager, grandson of Ken Kreuter
Brad Kehler, International Technical Service, grandson of Ken Kreuter
Erich Kreuter, Design Engineer, grandson of Ken Kreuter
Joel Kreuter, Toolmaker, grandson of Ken Kreuter
Evan Mueller, Material Handler, grandson of Klaus Mueller
Featured Project: Intel IDC 9
Haifa, Israel

Computer hardware giant, Intel Corporation, has received LEED Gold certification, the internationally recognized stamp of approval from the U.S. Green Building Council, for its latest design/data center - IDC 9 - that opened in Haifa, Israel on June 15th. The all-new facility boasts the most advanced engineering infrastructure and is Intel's first LEED-certified green facility, as well as the first building in Israel to receive LEED Gold certification.  The 259,000 square foot facility is noted for housing a 6500 square foot high performance data center.

Intel IDC1

Located on the corner of 30th Street and Greenway Road, the school is home to approximately 580, 7th and 8th grade students. The campus features a highly flexible gymnasium, a weight room, a tennis court, a running track, a full-sized field, and contemporary science labs. The ultra-modern facilities provide students with a comfortable atmosphere and an extraordinary learning environment.

The energy needed to power and cool today's high-tech design/data centers has radically increased in recent years. Factor in the reality of rapidly rising energy costs, and it's easy to understand the heavy impact these types of facilities can have on an organization's operational costs. With this in mind, Intel saw the design and construction of their new IDC 9 facility as not only an excellent opportunity to progress their "next generation" initiative of corporate citizenship and sustainability, but also as a potential target for significant costs savings. Thus, the mission defined the scope for a LEED-certified facility.

Intel IDC2

Certification became possible by leveraging an integrated design approach and mobilizing a "Green Building" team in the early stages of the building's design. A very important player on that green team was Tempmaster Israel, a local energy management firm and a KMC Controls authorized representative. Understanding that a high-efficiency HVAC and building automation system would play the largest role towards, not only energy conservation, but also indoor air quality and occupant comfort, the team came to rely heavily on Tempmaster. "Their expertise, knowledge, and professional presence were exceptional. Our systems at IDC 9 are highly complex and Tempmaster succeeded in keeping things simple. We are fully operational with a very reliable system," commented Tzach Namer, the Mechanical/Electrical Project Manager at Intel. 

Utilizing KMC's BACnet Direct Digital Controls (DDC), Tempmaster integrated with the Schneider Electric programmable logic controllers (PLC's) and GE SCADA systems to give Intel engineers precise control over their air handling systems. KMC's STE-6011 room temperature sensors installed throughout the employee offices and cubicles are connected to the inputs of approximately 400 KMC BAC-7003 BACnet Advanced Application Controllers (AAC) mounted on the VAV terminal units serving those spaces. Their "present values" are used as the "controlled variable references" for the PID loop to manage space temperature.

In turn, 12 KMC BAC-7301 BACnet (AAC's) create a "hard-wire" data interface between the MS/TP net and the PLC in control of the local air handling unit's fan speed drive and chilled water valve to minimize fan power and unnecessary cooling energy.  

Intel IDC 3

The BAC-7301s are connected to five KMC BACnet routers working through a pair of BACnet OPC servers which form the BACnet IP network. These systems are managed using KMC's BACstage operator workstation running at a remote server location.

Other BACnet manufacturers represented in this project include Trane (chillers and burner control units) and ABB (variable frequency drives).
IDC 9 also measures carbon dioxide levels for improved air quality, captures and recycles condensate water from the AC system and uses it for irrigation and heating the building with dissipated heat from ACs and data center computers.

Intel IDC 4

After completion, Charles Marcus, owner of Tempmaster Israel commented, "When we went into the project, Intel had trepidations over problems that could arise from the tight integration required between the BACnet controls, OPC servers, GE SCADA, and their own in-house, individual employee, control application. The confidence we had in KMC's product won us the go-ahead.  Additionally, KMC's BACStage operator workstation and their BACnet routers were of great help in getting all of the controllers up and running on schedule. The communication and global capabilities of BACStage saved us many hours of field work," Charles added. "But more than that, during the integration process, while our techs were working with the SCADA contractor's and Intel's people, BACStage became the accepted final arbitrator of who was on the right track, BACnet or OPC. KMC always won!"

Intel IDC 5

Although there are a number of other noteworthy elements of sustainability that contributed to the facility's LEED Gold certification (such as rooftop gardens, processor-based data center, chimney racks, and day lighting), the advanced HVAC and building automation systems will have the greatest impact on ROI potential. The sustainable design of IDC 9 results in a net 17 percent reduction in total building energy use, with projected annual savings of 750,000 NIS (about $200,000 USD). Because of Tempmaster, KMC, and the rest of the green team, IDC 9 is hailed as one of the greenest design centers in the world and has set a new standard for Intel R&D buildings.
Event Calendar
The latter half of the year takes us to various venues.  Try to catch up with us at one of the following events:

Our Featured Partner--
Neuco Inc.

A Passion to Evolve
Neuco logo 
More than 100 years ago, John M. Neustadt started his own business on the west side of Chicago.  Markets were evolving rapidly and what started as selling hay, coal, and grain, turned to, exclusively, coal sales throughout the 1920s and 30s.  World events such as the Great Depression and World War II forced other market evolutions and the Neustadt Company evolved with them, becoming a heating system installer and fuel oil deliverer.  At its prime, Neustadt Fuel and Supply had a fleet of 10 oil delivery trucks servicing the west side of Chicago. By the 1960's natural gas was taking over more and more of the oil business as a cheaper, cleaner, and easier-to-get alternative.

That's when John's son, Howard, and his brothers had the foresight and courage to take a monumental, evolutionary step-forming Neuco Inc., a distributor of automatic controls.  The gamble has paid off many times over as Neuco has emerged as a world-class master distributor of control products.  
Howard has since passed away, but his descendents and extended family members continue to provide not only ownership but strategic direction for Neuco.  But here is also another key to understanding the passion for evolution that typifies the culture of Neuco.  One of Howard's sons, Paul Neustadt, serves as company President today.  "As we have grown," Paul says, "we knew we needed specialization of skills and improved processes.  And it became clear that, for such expertise, we needed to reach outside of the Neustadt family."  

Scott Kohler, Neuco Purchasing Manager, exemplifies this practice.  "Previously," he says, "the company had a few buyers.  Now we have a dedicated Purchasing Department and all of the professional practices that ensure we can offer the right products at the right prices to our customers."  Scott earned an accounting degree from the University of Illinois at Chicago and has a self-described "passion for numbers."

Paul, who earned his bachelor's degree at Northern Illinois University, has a self-described "passion for selling."  "I absolutely love the customer interactions," Paul explains.  In fact, Paul seeks regular opportunities to meet with his customers and with a company sales territory of the U.S. and Canada that can be challenging.  He routinely joins his sales team on customer visits and works the industry event circuit, manning the event booth with his cousin, Bill (CEO), in order to maintain the relationships that have become so important to Neuco business. 

Neuco Management
The efforts of the Neuco management team ensures a family-
friendly culture even amidst significant growth.  Interviewed for this article are Paul (front row, right) and Scott (2nd row, left).

"We know who we are and what we do.  But more importantly, we know who we are not and what we don't do," Paul explains.  "We won't sell what we don't understand, for example.  And, of course, we want to grow the company but we have to be smart about it.  For instance, we're a family company and have a family atmosphere," he continues.  "We want our customers to feel like part of our family as well.  Maintaining that kind of culture through growth is challenging and we make a very deliberate and conscious effort to maintain the values that have served us for 100 years.  We work hard at this."  

"There are some things we do," Paul continues, "that simply don't make financial sense in the short term.  And there are some things we do simply because they are the right things to do.  We are concerned with the bottom line, but in the long term."

That same kind of strategic approach and commitment to values helps Neuco evolve in other ways as well.  For instance, through the recent, Great Recession there were no reductions in workforce at Neuco or even any reductions in hours for any employees.  "However," Paul says, "we have had to re-purpose the workload for some employees, refocusing their efforts where it made sense to adapt.  But because we had meetings and explained these moves ahead of time, there has been a full level of acceptance.  I think it is a good illustration of the trust that exists within our company family."

Neuco is, in fact, a wholesaler to wholesalers, performing no direct-to-contractor sales.  In the world of HVACR distribution there are often references to the so-called A & B items or the high-volume, fast moving components.  All wholesalers serve their markets with these parts.  But what about the C & D items?  With today's inventory pressures, more and more wholesalers have cut their stock levels so low that they can't respond in timely fashion to contractor requests for the lower volume items such as control products.  That's where Neuco comes in.

"We plug holes," Paul Neustadt says.  "Our goal is to make our wholesale customers shine in the eyes of their contracting customers.  We do that through same day and next day delivery, even if it's for that odd, $500 component that is used once every two years in a specialty industrial application." 

Neuco Building
Chicago has been home to the Neustadt family business since 1907.

Along these same lines, Neuco serves wholesalers who, due to low sales volumes for certain items, are not able to maintain direct relationships with manufacturing suppliers.  "We've seen a fair amount of this activity in the last couple of years," says Scott Kohler.  "Manufacturers are looking at their customer base and making management decisions about where it does not make sense to deal with a given wholesaler directly.  And that's fine as long as there is a company like Neuco to bridge the gap."

Paul notes that the inventory pressures affecting some wholesalers also have an impact on some manufacturers.  "Lead times have lengthened from many suppliers and, of course, this has dramatic ramifications in slowing down the supply chain.  I note, however," he continues, "that quality and lead times from KMC Controls are always very good.  I suspect that has something to do with your vertical integration and centralized location."

"By the same token, similar factors lead to our own success," Paul says. "We are in the middle both geographically and time zone wise.  We are not afraid of inventory.  (This is, after all, an inventory-driven business.)  And, we offer incredible breadth in our product line."

With just brief exposure to Neuco, it becomes apparent that not only these factors but passionate people with a passion to evolve have accounted for a century of success and will undoubtedly lead to continued distribution excellence in the years to come.
Climate Change
© 2010 Ben H. Dorsey III

Climate Change 2
Stay in touch!

Ben H. Dorsey III
VP, Marketing & Communications
LEED Green Associate
KMC Controls, Inc.

KMC Controls, Inc.
19476 Industrial Drive
New Paris, IN 46553
Toll Free: 877.444.5622
Tel: 574.831.5250
Fax: 574.831.5252
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