refrigeration magazine december 2015

DECEMBER 2015

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December 2015Vol. 198 │ No. 13ISSN #0034-3137

EDITORIAL STAFF

Mary Y. CronleyEditor/[email protected](404) 819-5446

Joe CronleySenior Staff [email protected](404) 295-5712

Markurious Marketing Group, LLCArt [email protected](678) 439-6534

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THE

of

2015

BEST

8

12

MAINTAININ’YOUR COOLKeeping refrigeration running right is a lot easier and cheaper than fixing it.

21BIG MONEY, ROLL-UPS & PACKAGED ICEWhat we learned

18HOW DO YOU

RETAIN EMPLOYEES IN

A SMALL COMPANYTHE FUTURE OF

THE ICE INDUSTRYIs there room for the small guy anymore?

TABLE OF CONTENTS

The Elf Chest by Mike Landino

22 TOP TEN TIPS FOR SMOOTHOUTPUT ICE MAKING

ON THE COVERThank you Travis Dale, Artisan Ice Sculptures, Charlotte, NC, for your holiday cover contribution to Refrigeration Magazine. Happy Holidays, Travis!

DECEMBER 2015

Don’t Take the Journey Alone. Call Us Today! 1.800.543.1581

We’re with You.Every Step

Modern Ice Equipment and Supply | 1.800.543.1581 | www.modernice.com

D E S I G N

O P E R AT I O N A L

S U P P O RT

T R A I N I N G

PA RT S &

F I N A N C I N G

www.modernice.com

S U P P L I E S

C O N T R O L S &

S E RV I C E &PA C K A G I N G

of the Way.

E Q U I P M E N T

I N S TA L L AT I O N


Lost time and lost inventory – most refrigeration failures can be traced directly to neglect

of routine and minimal attention. “The cause is lack of maintenance, mainly,” says Mitch Byrne, president of Northeast Cooling headquartered in Round Lake, Ill. Byrne estimates, “Eighty percent of operators do nothing, no maintenance, ever. Maybe 20% do some, but not enough.” He adds that some operators receive routine quarterly maintenance, and they have virtually no breakdowns.

Clean Condenser Coils Most problems are heat related. A dirty condenser coil most often is the root problem. Dust collects on the coil, and airborne pollutants usually collect too, which makes more dust stick. All of that grime builds up as insulation. The condenser can’t eject its heat to the ambient air. The refrigerant gets too hot and starts damaging other components. Compressors and fan motors overheat, and the system starts drawing higher amperage and the wiring burns. The refrigerant degrades and leaves a thick residue that restricts the flow through metering devices, whether capillary tubes or expansion valves. Next thing you know, you have a whole system that needs troubleshooting and cleanup.

“It’s an expensive repair,” Byrne says. “You have to remove the gas and tear down the system. It’s four to six hours of labor — a $1,000-$1,400 repair for a $20 part.”

So, keeping condensers clean is key. Once every three months — or maybe every month depending on your conditions — you should either brush, blow or chemically clean the condenser. Be careful: You don’t want to damage the fins on the coil. If you’re brushing, use a nylon brush and clean in the direction of the fins. If you prefer blowing, you can get a low-pressure air compressor that will do the job safely with a flexible hose that lets you get into tight spaces. If your condenser tends to gather grease/oil, you might prefer chemical cleaning. If so, use something mild and safe, such as Simple Green. However you choose to clean, do it with minimal invasiveness. You don’t want to push grime deeper into the machine; you want to get it out. Consider a lightweight filter cover to keep the grunge off of the coil. It’ll be handier than the cleaning; just make sure it doesn’t restrict too much of the airflow around the coil. Servicers recommend a rating of no more than 10% restriction.

Seals, Hardware Other items needing a touch of maintenance are few, but important. Seals and gaskets pick up dust and dirt, which interfere with the sealing effect and eventually erode the material. Soapy water and a soft touch should be enough to keep them clean. Check hinges periodically, too. They’re moving parts, they need lubricating and they can wear and very gradually move out of alignment, compromising the door seal.

Keeping refrigeration running right is a lot

easier and cheaper than fixing it.

Best of RM 2015

By Brian Ward

Maintainin’ Your Cool


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MERCHANDISERS

PARTS


An Ounce of Prevention As is often the case, an ounce of failure prevention is worth a pound of cure. When you’re choosing refrigeration, all other things being equal, look for components that are easily accessible. Condensers tend to be front-mount, which is good for cleaning access. But look for accessibility to other components, too, in the context of your plant layout. Make sure you leave breathing room around the equipment, Byrne says. Crowding the refrigeration equipment really makes a noticeable difference in the amount of upkeep it will need.

Constant VigilanceOne last bit about prevention: Refrigeration seldom fails without warning, and a watchful eye can give you plenty of time to catch problems before they’re catastrophic. Check holding temperatures as often as possible; a trend to higher temps will be a clue. Even a degree or two makes a noticeable difference in spoilage. Keep an ear tuned to the compressor, too. If the refrigerator is running longer cycles, or more of them, call a service tech before it gets worse.

Preventive-Maintenance Contracts Last, but definitely not least, set up a preventive-maintenance contract. “Without a doubt, if a customer does a preventive-maintenance contract, that equipment will operate better, last longer and have less down time,”

says Wayne Snell, preventive maintenance administrator at All-Temp Refrigeration in Madisonville, La. Even though operators might theoretically do some tasks themselves, they can’t really diagnose the equipment, and even if they could, accessibility is usually such a challenge that operators don’t have the time or inclination. In locations such as New Orleans, he notes, summers can be a special challenge.

“As is often the case, an ounce of failure prevention is worth a pound of cure.”

Best of RM 2015


from a single Fridgidaire ice maker, hand packaged with scoops and hand-tiers. Eventually, this was replaced by two Manitowoc 1100-series machines mounted on a Mannhardt ice bin and dispenser. In the early years, deliveries were made on the back of medium-temperature milk delivery trucks, and sometimes on the back of the pickup. The business continued to grow, with Spring Ice Company’s niche market serving rural customers in the highlands and small towns of southwest Virginia. While the routes were long, the beautiful countryside served as a reminder that this truly is God’s country.

In 1987, accounts had grown to such a level that an investment was required to increase production. A used, 5-ton, Serv-Ice live-bottom bin was purchased out of Oklahoma along with a 5-ton tube ice machine from CASCO in Harrisonburg, Va. From 1987-2012, the summer seasons saw 24-hour operation of the 5-ton CASCO, maximizing its capabilities. After several refits, the 5-ton CASCO was retired and replaced in 2013 with a 10-ton P-218 Vogt, refurbished by Ice Productions, Inc., out of Louisville, Ky. While we still utilize the Serv-Ice bin, the P-218 has proven to be a very reliable, high-capacity unit.

In many respects, the growth of the business reached a plateau in 2009 due to competition from all directions. While accounts included convenience stores, grocery stores, big box retail stores, a discount retail chain, restaurants and even concrete companies, the ice industry was quickly

It’s the question we ask ourselves each day… and it’s not the only one. What does the future hold for a sub-regional, hometown, rural, packaged ice company? How do we survive, move forward, and maintain profitability and relevance in an industry which appears to be consumed by larger and larger corporations? Should we invest in new production equipment, merchandisers and vehicles to grow the business? What are the risks involved with an increased debt load? Can we compete and hold on to our valuable customers in the face of competition? While we strive to answer these questions, what we do know is where we came from, the quality of our product and service which we have provided over the years, and our desire to remain and grow in the marketplace.

HISTORYSpring Ice Company was founded in 1980 by my father, Richard Saufley, in Marion, Va. At the time, he owned and operated an independent wholesale Farmbest milk and dairy product distributorship. He was first approached by Radford Ice in Radford, Va., to service an account in Marion and soon received many inquiries from local businesses who were dissatisfied with the local ice company.

These factors motivated him to take a step forward into the packaged ice business.

Utilizing established delivery routes and customers from the existing distributorship, the ice business slowly began to build. Initially, ice was made

The Future of the Ice Industry Is there room for the small guy anymore?By Chris Saufley, Spring Ice

Best of RM 2015

Left to Right: Medium-temperature truck used in the early years; Serv-Ice live-bottom bin and Perfection Ice Scoring Machine still used for packaging; CASSCO 5-ton tube ice maker, Mannhardt ice bin and dispenser and (2) Manitowoc1100-series ice makers


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consolidating, and soon, Spring Ice Company became the last small independent packaged ice company in the region.

OBSERVATIONSThe challenges that Spring Ice Company faces are similar to those faced by dramatically larger ice companies, just on a different scale. Fixed assets, equipment, production, refrigeration, and delivery expenses quickly consume income, squeezing profits (yes, the resources used to provide for our families) and pressure us to find and cut costs. Combining those factors with increasing regulatory requirements could easily lead a small company owner/operator

into making the decision that all the hard work just isn’t worth it anymore. These are incredibly difficult decisions to make and the possibility of ending a family business is not an enviable position to be in.

The ice industry, by and large, has not always been held in the highest esteem. On the other hand, Spring Ice Company has become known as a reliable and professional company, establishing relationships with customers, providing quality service, and having a remarkable reputation for over 35 years. Unfortunately, many small companies, such as us, have felt the pressure from larger ice companies, and not always in a

fair way. Actors within our industry have not always traveled down the ethical road when competing. In fact, competing is not the correct term to use in this case. But maybe now the winds of change may be blowing.

The repercussions of a recent class-action lawsuit against a few larger

“Fixed assets, equipment, production, refrigeration, and delivery expenses quickly consume income, squeezing profits (yes, the resources used to provide for our families) and pressure us to find and cut costs.”

continued on page 25 ►

It was an odd and peculiar dust that blanketed the leather, box-like chest; not because it

was old and musty smelling, but more so because of the shininess of its color. The seasoned wooden crate that covered it could not hide its brilliance. Almost amber, Bobby thought as he and his siblings looked at it in silent awe. From the moment the eldest off-spring of Mr. and Mrs. Shultz pulled back the dirty, smelly, green tarp that until now covered the crate, sharp rays of brilliant light shot through each and every nook and cranny within the porous container. The two youngest, blond-haired twins, screamed; not in fear but in an excited giddiness, more so than any trip to Six Flags could have ever produced. The parents were gone for the morning but still Bobby pleaded for quiet. He was not sure what he was seeing or what he was about to see but he did feel that he and his two sisters somehow had a role in what very well may turn out to be a very interesting morning. That they were not supposed to be in the attic without a parent in attendance was part of the adventure but that was now forgotten as the mesmerized children viewed this thrillingly exciting new find. Three sets of wide eyes opened wider as the dust rose, almost

inconspicuously, floating gaily above the chest in a most delightful way, as if it had been pre-destined. Each individual particle sought its mates until all joined together into a tornado-like funnel. Eyes as large as saucers watched as the glittering funnel swirled faster and faster. Blond hair flew in all directions but did not cause terror in the hearts of the young girls, but instead increased their excitement. For Bobby, the scream of horror that so desperately fought to escape the confinement of his lungs and throat seemed stalled and confused. An excitement mixed with childish bewilderment conflicted terribly with his twelve year old sense of reality. His boy-like romance with adventure won. He watched, as did his sisters, as the golden dust-laden whirl-wind raced about the large attic and paused a moment to hover over the chest. Not knowing how he knew but sensing he was being directed by some kind of power not of this earth, Bobby slowly and with complete deliberation, gently lifted the chest out of its wooden container and placed it on the floor. The amber-colored tempest rose again and with purpose aimed its narrow end toward the hour-glass shaped key hole that centered on the brass latch of the chest. With a blinding speed, almost but not quite imperceptible to the children’s attentive eyes, it entered the key hole and disappeared. For a moment nothing happened. The sisters looked to their brother, who they knew, because he told them so, was knowledgeable in the things not understood by little girls. He glanced back at them confused and somewhat

disappointed. That soon changed. The lid of the chest opened without a sound. There was no magic or drama; it simply opened. The room was silent with the exception of the deep and forced breathing of three young children. As a group, they stood over the chest and, holding hands, looked down. Twelve white candles wrapped in red velvet cloth lay in the chest. The interior of the leather strong box was lined with wrapping paper and smelled of cinnamon. The children drew in deep breathes, partly in relief that nothing scary jumped out of the box but also because they loved the smell. Bobby looked to his sisters and nodding, slowly reached into the chest. With the gentle touch of a young boy who had been left in charge of his even younger sisters, he lifted out the candles wrapped in velvet and laid them on the large wooden table in the corner of the attic next to the small octagon window that provided the only source of natural light to the room. One by one, he stood each candle. And one by one, each magically lit. “Oh my!” The girls exclaimed in unison. Bobby felt the hair on the back of his neck stand as he watched the flame of each candle rise high and reach out for the other candles’ fiery lights. Twelve lengthy tear-dropped flames touched each other, intertwined, and became one bright, thickly braided light. Sprinkles of golden dust, the very dust that covered the chest, rose to the ceiling and then settled gently over the top of the great light. Suddenly the golden braid spun rapidly over the leather strong box. A sound, faint at first, became louder. Each child strained to understand what they were hearing while at the same time watching what had to be the most fantastic scene they had ever witnessed. The golden braid slowed its revolutions enough for great shouts of excitement to come forth from the wildly mesmerized kids as a form materialized within the flame. A small

by Mike LandinoChest

Elf The


figure, slender, young and female, smiled brightly at the children below her, and with an excited and happy shout, jumped out of the flame and onto the floor. This time, the children did scream in fright. Bobby grabbed his sisters in one frantic grab and headed for the attic door. He ran face first into the most delightfully serene, smiling girl he could have ever imagined. She put a hand to his shoulder. “Don’t be afraid of me, boy; I am no one to be scared of.” She stood, hands on her waist, four foot tall, and that included the velvety brown, cone-shaped hat that sat upon her head, and laughed gleefully. “B-b-but, you’re n-not real!” Bobby said barely above a whisper. He stared wide-eyed, opened mouth and ready to bolt out of the now brightly lit attic. Both sisters wiggled mightily in his arms while they took in this greatest of scenes. Before them, stood what only could be described by their little girl imaginations as a for-real, live pointy-eared elf. “I most certainly am real, boy; as are you and your two sisters.” Jabbing a thumb lightly towards the chest, she continued. “I, young Robert Shultz, am Elf Fairy 2nd Class Turtle Dove, hereby to be called by you, Poinsettia.” And with a mighty leap, the miniature woman flew four circuits around the attic, each time dropping down close enough to pat the blond-haired twin’s heads. The girls laughed and jumped up and down gleefully, all the while tugging on their brother’s shirt. “You have to let us keep her, Bobby; can we keep her, can we keep her?” Bobby stood dumbfounded as he snapped his head back to the diminutive woman who looked about the room with an air of confidence, and something else he couldn’t put a word to, but had he been able to do so, that word might have been –mischievousness. She looked to the left and then to the right with

her eyes finally lingering on the small octagon window. The Elf Fairy flew to the window, wiggled her pointed ears and sighed. Turning back to Bobby she asked, “I see a lot of houses, Boy, but I see no people. Have they traveled to some great event we can all go to?” Poinsettia’s wings beat incredibly fast and the excitement and anticipation on her face was extraordinary evident, and based on the reaction on his sisters’ faces, it was also very infectious. “I’ve been in there very long time,” Poinsettia said, stretching her small frame. Dressed just as all little girls would hope an elf dressed like, forest green tights covered her legs and torso, along with a brown vest that had three over-sized wooden pegs that served as buttons, and a long, brightly covered feather protruding from her hat. “I’ve a question to ask you, Boy. May I?” “Can we keep her, Bobby, please?” The twelve year old shook his head in amazement at his sibling’s question and how unafraid the girls were and then turned his head back to Poinsettia. “May I ask you a question first?” When she bowed theatrically bearing a large friendly smile, the boy proceeded. (Are you good or bad?.....) “Why are you here?” “Well, Boy, that is a delightfully delicious question and one that I shall answer in time. But first, Boy, tell me where I am?” “Why, you’re in Colorado.” Poinsettia flew to the window and looked out to the west. Pike’s Peak stood majestically. Wooded forest saturated the mountain side and the sky was bright blue with only a few fat cumulus clouds for ornamentation. “Well, that’s just fine as peaches. I guess I’ll have to wait a little longer before I make Elf Fairy 1st class.” Poinsettia saw the confusion of the children’s faces and continued. “Quite some time ago Santa sent me on a mission just before the big day; twelve days to be exact.” Jabbing a thumb towards the chest, she went on.

“Many human years ago, eighteen ninety-seven, to be exact, I was to be sent to an old man’s house in Berlin. The poor man,” she sighed, “was very, very old and did not believe in the Spirit of Christmas. I was sent to change that. I was brought to him on the very day before Christmas, hidden in the chest. But alas,” she sighed again, “the old man passed just hours before the day had begun. The chest, along with everything else he owned was put into storage. From each generation to the next, the chest along with some of the other items he owned was placed into attics, unused rooms and cellars. Finally,” she told her captive audience, “I was brought here to your home. You see, you are the decedents of this man. He would be your great, great, great grandfather. “Wow, so what do you do now?” Bobby asked. “Well, until you opened the chest, I didn’t know what to do. You see,” she said with even redder cheeks, “I forgot where the signal code was that I was supposed to send when it was time to come after me and,” she looked out the window again and opened it, “I guess when they realized something had happened they came to get me, but by then, I and the rest of the old man’s stuff had been moved.” Looking at the kids, with a frown, she continued, “They’ll find me….some day,” her voice trailed off. “But,” she said sudden glee, “I’m here now.” And with that she flew out the window. The three children stood at the window, each trying to stick their heads out of the small opening. “Where’d she go, where'd she go” Bobby?” “I’m right here, you silly goose” Poinsettia said grinning wildly at Susan. She stood, or more rightly worded, hovered, above a small pine tree the graced the front yard. “Let’s go somewhere. Where should we go, girls? To be continued in January 2016


How Do You Retain Employees In A Small CompanyBy Anita Campbell, Small Business Trends

Best of RM 2015

Take the time and effort to hire right. In a small business you can’t afford to make even a single bad hire, because one person may be a large part of your staff. If you have 10 employees, by picking the wrong person for just one position you’ve now negatively impacted 10 percent of your workforce.

Get creative. You’re competing with a lot of other companies out there – some of which may be able to offer higher pay than you can. Consider adding non-monetary benefits such as flexible work schedule, and non-medical benefits such as vision

and dental coverage. Most employees will look at the total overall package.

Recognize good work. Employees want to be appreciated. Atta-boys and plain old thank yous for going above and beyond, are important. Recognition programs such as employee of the month help, too. Don’t let all or even a majority of your feedback be negative or “constructive” — show appreciation for a job well done.

Create connections. Relationships matter. Take the time to develop relationships with employees such as by mingling during lunch breaks and holding internal celebrations. One thing I learned a long time ago is that employees like to work in a place where

they like their boss and their coworkers.

Listen. No one likes to feel powerless or like they don’t matter. By listening to suggestions and input, you show that the employee is important. They matter.

Here are five ways to improve your employee retention and ensure your best and brightest stick around:


You’re excited because your business has grown. It’s no longer just you running everything. Things are cranking along. Your sales are now predictable enough that you start hiring employees.

After a couple of months of searching and hours of reviewing resumes and interviewing, you really stretch your budget and hire a manager for a key role. Let’s call him Joe.

You spend many hours getting Joe up to speed on your business. You pay good money out of pocket to send him off for specialized training to learn the systems and software your business uses, and to develop stronger management skills.

After a year or two, Joe has really caught on. He is engaged and contributes everyday. He is reliable and a team player.

Joe is so good that he develops deep know-how about your business and how to run it. You’re very pleased with Joe.

One day a horrible thought hits you: What if Joe leaves?

It will be difficult to replace him without disruption. Your business could be in for a world of hurt, at least in the short term. And that gets you thinking: what do I have to do to make sure Joe doesn’t leave?

And it’s not just Joe. You think about the rest of your employees and how they work as a team and keep the business operating. The larger question becomes: How do I retain all my valuable employees?

Great employees are the lifeblood of any small business. However, as the job market accelerates, even happy workers may be tempted to explore whether the grass is greener at another company. Losing employees is a concern for most small businesses, not least because of the cost: a study from the Center for American Progress estimated that replacing an employee costs, on average, 20 percent of the employee’s annual salary.

So if a worker making $50,000 a year quits, you’ll pay roughly $10,000 to cover the lost productivity costs and then recruit and train someone new.

“At a small business, everyone is that much more important; you’re a bigger piece of the pie,” says Dawn Fay, New York-based district president for staffing firm Robert Half. “There’s the cost of losing someone, but you also run the risk of losing other employees or burning people out as they carry a larger workload, which can affect your client service and product and ultimately impact your revenue.”

For small companies, keeping the right people in the right seats is paramount.

We’ve written about this before. In Houston during the 1960s there was a guy who was in a slow, steady family business that his father had been in. It was a good living but wasn’t flashy. It was extremely predictable and not many people wanted to be in it. He decided, “My competitor a mile away operates pretty much like me. He buys his products from the same companies, has a similar building and vehicles. I bet if I owned several of these I could save a lot of money and end up making a lot more.”

He bought his competitor, and then a few more in Houston, and by 1969 had a public offering on the predecessor to NASDAQ, eventually moving to the NYSE. At one point he owned businesses in Australia, England, France, and thousands in the U.S. Today, Service Corporation International (SCI) owns more than 1,500 funeral homes and more than 500 cemeteries. It is considered the granddaddy of the “roll-up” businesses, companies that grow by buying up established locations and managing them for economies of scale. We’ll come back to this story.

Skip to 1992 when a guy named Jim Stuart, an accountant, gets funding of $270 million from a Texas investment bank to buy up packaged ice companies. Stuart is also in Houston, and one of his early accounting jobs had SCI as a client.

His leverage is an in-store machine which he places in existing accounts, scaring the competitor plant. He eventually buys up most of the regional players – Reddy Ice, Midsouth, Cassco and others. He does an IPO also, but it never really takes off. The company slows down, the stock doesn’t grow,

they can’t acquire other companies, and they can’t pay their $270 million back. They go into bankruptcy.

They re-emerge, rename themselves Reddy Ice instead of Packaged Ice Inc., and do another IPO. It doesn’t go anywhere, and in 2012 they find themselves in the same shoes. They declare bankruptcy, but instead of $270 million in debt, they now have $530 million, almost twice the amount.

Company sales are about $350 million. You may think, “Oh, I could make money if I had sales of $350 million.” Yeah, you probably could. But Reddy’s debt carried some massive interest rates – their annual interest expense was over $58 million in 2011. Makes it sort of tough to make a profit if you need $58 million in cash flow before you can keep a dime. I know, depreciation and other accounting methods can take up a lot of slack, but they are in bankruptcy. So I guess it didn’t work.

We tried to get you a proper story on Reddy, but they stopped making disclosure when they declared bankruptcy. They were bought out of the bankruptcy by Centerbridge Capital, a Park Avenue group that buys distressed assets. These used to be called vulture funds but that may not be polite any more. They don’t make public announcements, their website doesn’t list anything, and they don’t answer their phones.

News reports at the time indicated that Centerbridge would receive a 70% equity stake in the reorganized company in exchange for retiring their debt. At the time of the announcement, The Wall Street Journal indicated that some of the $530 million in bonds were trading for 18¢ - 22¢ on the dollar. If that

is accurate, that means that the $530 million in debt could have been retired for as little as $117 million.

So it is possible that, for $117 million, Centerbridge acquired the assets and cash flows of Reddy Ice. That’s two years of interest expense at the old rates. They still have $345 million in revenue, only now they get to keep the cash flow. Take out the interest payments and the accounting tricks and it’s a whole lot more interesting. Their 2012 disclosure shows Earnings before Interest, Taxes, Depreciation & Amortization of a hair north of $44 million. $117 million to capture 70% of $44 million seems like a pretty good deal.

But we said we’d come back to the funeral home story – and here it is. The merger & acquisition market for funeral homes got overheated. There are way more of them than ice plants – more than 22,000 in the U.S. A number of companies sprang up, funded by venture capital, to buy funeral homes. Just like real estate, when lots of money is chasing a limited number of properties, the price goes up. At its peak, the owner of your town’s nicest funeral home could eat free dinners every night from guys who wanted to buy his place.

One day, though, the Houston guys realized they were overheated. They couldn’t pay their interest payments, just like Reddy. They restructured. Their big rival, a Vancouver company called Loewen Group, couldn’t restructure and went into bankruptcy. All the other players

►

By Joe Cronley

What we learnedBig Money, Roll-Ups & Packaged Ice


fell, and eventually the Houston company bought all their competitors except one.

During this period, they were required by the courts to divest if they held too much market share in a metropolitan statistical area. Lots of guys who sold their funeral home for big bucks got the opportunity to buy it right back, at a deep discount.

That is something that will not happen to Reddy. If they had tried to hold on and manage their own bankruptcy, one choice would be to sell off poor performing locations to lighten the load. Since Centerbridge stood for the whole amount, that isn’t going to happen. Reddy, all 58 plants, will remain a whole company. No bargain plants will be forthcoming.

What does this mean for you? If you have a Reddy plant in your market, they are not going to close. You are not going to be able to pick up their routes for nothing.

So what’s the plus for you? Here’s one thing: Arctic Glacier, Canada’s largest producer as well as a significant U.S. player, is still independent. They were in bankruptcy in 2012,

and when Centerbridge made their deal for Reddy, they tried to acquire Arctic. It didn’t happen, and Arctic found its own buyout deal with Miamibased H.I.G. Capital LLC buying the group for a reported $434.5 million.

As of December, H.I.G. was seeking a buyer for the Arctic Group. Asking price? $600 million. Hey, a guy’s gotta make a profit, right?

So we as an industry have avoided domination by a single player. Better to have two competitive players, especially since their markets don’t overlap. It gives the independent the chance to be the competitor in its market.

In a second bit of good news, Arctic Glacier is now on the market at a premium price. Neither company seeks to finance itself with a public offering (both have had two tries at being a public company). Both of their owners are turnaround holders: they buy assets, stabilize them, and sell them. They aren’t known for being portfolio companies that hold on to their investments (think Warren Buffett). While both Arctic and Reddy are no longer on the brink of death, their long term prognosis has not yet been written.

Best of RM 2015

Inspect all of the valves in the system. Check for a full range of motion free of binding. Replace pressure relief valves as necessary.

Do a system leak check and check the refrigerant charge. Allow enough time to fix any leaks.

Flush out the water system on your ice maker as well as your cooling tower or evaporative condenser to remove sediment and debris.

Clean or replace all water filters, oil filters, and suction strainer.

Calibrate pressure transducers (if applicable).

If you have a water cooled condenser, remove the heads and inspect the tubes. Clean them if there is any scale present. Failing to do this will result in higher head pressures and higher energy costs.

Check the compressor oil level and adjust as needed.

Inspect the evaporators and clean as necessary. Look for scale buildup and physical damage.

Check the pH level in your evaporative condenser sump and apply water treatment to keep it within the manufacturer’s suggested range. Inspect the coils on the evaporative condenser to identify scale buildup. The presence of scale is a good sign that water treatment is necessary.

Run the system through its paces. Adjust the harvest time to minimize the amount of time the system is dropping ice. It is one of the most important things to optimize to maximize the capacity of the system. Also, adjust the freeze time to achieve the desired ice thickness.

Top Ten Tips For Smooth Output Ice MakingBy Jesse StretchMorris & Associates

Spring will be a good time to do some seasonal maintenance on your machines to ensure they will be in top condition for the summer. A little time up front will save time and money down the road when you can’t afford to be down. Here are 10 steps that you can take to make sure your ice maker is ready to go.


24 REFRIGERATION Magazine │ December 2015800.325.3667 | 314.849.4411 | www.automaticice.com

From the water coming into your building to automatically delivering finished pallets of

Packaged Ice into your freezer, AIS Designs, Engineers, Delivers, and Supports the industry’s

most efficient and productive solutions.

The Complete SolutionOperations Consulting, Facility Design, Complete Project

Engineering, Vogt Ice® Manufacturing Systems,Ice Processing Systems, Ice Packaging Equipment, Automatic Palletizing Systems, Control Integration,

Packaging Products, Leer® Merchandisers, Equipment Parts and Technical Support,

Turn- Key Project Installs, Equipment Rebuilds, Field Service

Delivering tomorrow’s technology today

December 2015 │ REFRIGERATION Magazine 25 800.325.3667 | 314.849.4411 | www.automaticice.com

From the water coming into your building to automatically delivering finished pallets of

Packaged Ice into your freezer, AIS Designs, Engineers, Delivers, and Supports the industry’s

most efficient and productive solutions.

The Complete SolutionOperations Consulting, Facility Design, Complete Project

Engineering, Vogt Ice® Manufacturing Systems,Ice Processing Systems, Ice Packaging Equipment, Automatic Palletizing Systems, Control Integration,

Packaging Products, Leer® Merchandisers, Equipment Parts and Technical Support,

Turn- Key Project Installs, Equipment Rebuilds, Field Service

Delivering tomorrow’s technology today

companies have been positive. The settlement shed light on much of what was occurring in the shadows of the ice industry and in my opinion, much of what could be referred to as unfair and non-competitive. Having experienced such practices, it has been somewhat satisfying to come back into a business which my father built and which has experienced positive steps in the right direction. It’s easy to get lost in numbers, but we must not, and cannot, forget that our business is about people.

THE WAY AHEADMany ice companies were created in much the same spirit as Spring Ice Company. Whether it was a coal or oil company who saw a need for ice in the summer, a convenience store operator who started bagging his own ice and realized a broader need in his town, a wholesale milk distributor who saw an opportunity… they all started somewhere. It’s my honest opinion that no ice company, regardless of their size, should forget where they came from. We all should look to doing business better, improving our reputations, serving customers and competing based on

price, service and quality. At times, it’s even acceptable to help each other.

Leadership, from the smallest to the largest companies, should encourage fair business practices and opportunities, explore profitable co-packing and provider relationships and always, always seek to improve the reputation of our industry. These create win-win scenarios.

I believe the future of the ice industry is brighter than ever for companies of all sizes. We’re making some hard decisions at Spring Ice Company and are determined to remain competitive in our service area and stay true to our roots. We are finding that there is indeed room for the small guy. But we must continue to research, analyze, discuss options and determine the way ahead. Then, make it happen, adjusting course as necessary. So, without further delay, it’s time to get back to work! About the Author: Chris Saufley was there when Spring Ice Company was created, left and served his country for over 23 years in the US Navy, and returned to his roots to work alongside his dad. Life is good.

Best of RM 2015

▲ continued from page 13


SOUTHEASTSANCHEZ REFRIGERATION EQUIP

[email protected]: 954-648-2459Office: 386-597-6381

Vogt P-18XT Year 2000 mini tube W/C 230/3/60

DX-11 ten ton By Vogt year 200 1-1/2" tube W/C 230/3/60

DX6-900 five ton mini tube 230/3/60

Used JMC sealer 115/1/60

Used 31' X 31' X 16' Freezer W/ 7.5 HP Kramer Cond 230/3/60 includes 8' X 8'

Slider door and standard duty door

20 Ton Turbo Rake bin with front delivery screw 230/3/60

3- P-34AL 1-1/2 tubes 230/3/60 (used)

3- P-34AL 7/8" tubes 230/3/60 (used)

1- Turbo S/S cutter 230/3/60

Vogt P-118 year 2007 w/ low hours 230/3/60 W/C

12 Ton S/S Self-Contain Turbo Ice maker W/C

One ATC-258B Evapco Evap Cond.460/3/60

Two Vilter 440 comp. Pkg. 460/3/60 200HP Ammonia

For pics call Ralph at 954-648-2459

Ad IndexAmerican Ice Equipment Exchange, www.aieexchange.com...25 & 27Automatic Ice Systems, www.automaticice.com ..................................24Classified Ads ..........................................................................................26-30Farley's Frigeration, www.farleys-srp.com ................................................13Ice Maid, www.icemaid.com ...................................................................10Ice Max, www.ice-max.com .......................................................................2Ice Systems & Supplies Inc. (ISSI), www.issionline.com...................20 & 26Ing-Tech Corporation (ITC), www.itcpack.com ...............................9 & 30Keet Consulting Services, LLC (KCS), www.kcsgis.com ..........................11Leer, Inc., www.leerinc.com ......................................................................31Matthiesen, www.matthiesenequipment.com .......................................23Modern Ice, www.modernice.com ...............................................6-7, & 29Polar Temp, www.polartemp.com ...........................................................32Polar Temp Express, www.polartemp.com .........................................16-17Sanchez Refrigeration Equipment Sales, Inc., www.sanchezref.com ..19Sisco, www.siscoproductsinc.com ..............................................................5Vogt Ice, www.vogtice.com .......................................................................9

CLASSIFIED ADVERTISING

Rates are $1.00 per word, with a minimum charge. Any blind ads, with an assigned box number c/o publisher, add $10.00. Deadline for upcoming issue is the 1st of the previous month.

For advertising and listing information, contact Mary at

(404) 819-5446 [email protected]

Ad index/Classified ads

USED EQUIPMENT FOR SALE• Turbo Tig 33 Ice Maker, 98 model

• Mycom N6WB Compressors w/125 HP motors skidmounted w/oil separators (used with Vogt P34ALice makers)

• Turbo CB38 Rake

• Screw Conveyor Drive Packages for 9" and 12"conveyors (great condition)

• Hammer RBC with conveyor

• Stainless 9" and 12" screw conveyors

• 21' Hytrol belt conveyor

• Turbo CB87 with plastic chain and sprockets andstainless steel flights

• Morris 18 ton Tube Cube Maker, R22, 2006 modelcomplete with evap condensor 1" ice

• Vogt 218, rebuilt in 2005, complete with coolingtower

"NEW" KAMCO PARTS - Ice Systems & SuppliesRock Hill, SCToll free (800) 662-1273or (803) 324-8791


SOUTHEAST (continued)

Classified ads

AND MUCH MORE!If you have “discontinued” ice bags, or used equipment you would like to sell PLEASE CALL. SEE OUR USED EQUIPMENT WEB PAGE AT WWW.AIEEXCHANGE.COM. Call for surplus ice!

Polar Temp Equipment Mike Landino - Toll free - 1-877-376-0367 E-mail (NEW ADDRESS): [email protected] Don’t forget to call if you have a quality piece of used equipment for sale.

USED EQUIPMENT FOR SALE

ICE EQUIPMENT FOR SALE

• 1-Morris 70 ton nugget ice maker NIM-200 HVS-70 ECR complete system

• 1-Morris 70 ton nugget ice maker NIM-150HV-70 complete system

• 1-Mathiesen 3’x5’ stainless snow reel

• 1-Turbo Ice Sizer SN: 950930

• 1-UVS Snow Shaker Type C-5

• Matthiesen VLS bagger

• Turbo block press

• Various lengths of 12” stainless screw conveyors, troughs, drive motors and gear boxes (new and used).

CALL ME BEFORE YOU BUY NEW.

Bo (757) [email protected]

HARD TO FIND PARTS?Impossible to Get?

CALL FRANK!

If he doesn't have it and he can't get it, it can't be found!

Compressors, Vilters, Eclips, MRI 90, York, Y & G Series HDI Compressors, Frick, York, Vilter ALSO large selection of

Parts for Compressors, Block Plants.

We buy all types of used ice making & refrigeration equipment.

COMER REFRIGERATION(386) 328-1687 | (386) 325-0909 (fax)

[email protected]

• Vogt P24AL’s 7/8 Ice Makers with Refrigeration

• Vogt P24AL Mini Tube, Ice Maker W/Refrigeration

• Vogt 18XT Mid Tube, 10 Ton Ice Maker

• Vogt 118 5 Ton Ice Maker 7/8, W/C• Vogt 4000 4000lb 7/8 A/C

Ice Maker• Vogt 3000 7/8, W/C Ice Maker• Morris 70 Ton Nugget Ice Maker• Morris 70 Ton Flake Ice Maker• Morris 18 Ton Ice Maker• Turbo Ice Makers (5-20 Tons

Available)

• RE-Built Hamer 125 Bag Closers with Stands

• Hamer 125 Bag Closers with Stands• Hamer 14G Ring Closer, To Include

Stand and Conveyor• Hamer 310 Form, Fill, & Seal • Matthiesen VL510 Top Load

Galv. Bagger • Matthiesen Bagger Take-Off System• Matthiesen VLS, Bottom Load

Bagger• Kamco 14 Ton Moving Floor Ice Bin• Kamco 20 Ton Moving Floor Bin• Leer BL-39 Ice Block Maker• Clinebell B-56’s, 11lb Block Makers• Clinebell CB300 300lb Block Makers• 9x10 Screw Galv. Conveyor

• 12x16 Galv. Screw Conveyor• 12x30’ Stainless Screw Conveyors• Belt Conveyor, Hytrol 10’• Belt Conveyor, Hytrol 11’• Magliner Ramp 28” x 13’ 4”• Baltimore Aircoil CXV-184• Vilter VSM-601 Single Screw

Compressor• Type B Multi-SystemControl Panel• Walk-In Freezer 12x20x8• 7lb Wicketed “mis-print” Ice Bags • 16lb Wicketed “misprint” Ice Bags• 5lb Wicketed Ice Bags • Infra-Pak Stretch Wrappers• Turbo Ice Sizer


MIDWEST

NORTHEAST

SNO CAP SALES, INC.St. Louis, MO | 636-225-6011

Carving Blocks For SaleClinebell quality, boxed and palletized. We are centrally

located and ship nationwide. The Choice is Crystal CLEAR.

Equipment For SaleS60 Block Maker

Glass Doors for Merchandisers

FOR SALE• Frick screw (150 hp) with all control board starter etc

• Micom Recip N6 with controls and 40 Hp• Ice crane for 24 block harvest

• 12 cylinder Vilter recip no control or starter• Block crusher (300lb), ice blower

• Vertical screw (old) various block equipment

Contact Union Central Cold Storage Inc:[email protected] or (213) 489-4205

FOR SALEModel C-5 ICE Universal Vibrating Screen3’x5’ Screen with 7/8” Screen Openings

Call Jimmy: (920) 231-7784

FOR SALESmall ice plant business in central Illinois. Good

customer base with lots of growth potential. Owner wants to retire. Call Paul for more information.(217) 374-6500 (office) or (217) 473-2615

Classified ads

ICE FOR SALE A Family Owned Ice Company

Tube Ice7, 10, 20, 22 lb Bags

Over a million bags in stockShipped or Picked up

PIQCS Plus Accredited

Arctic Ice Inc Call Steve Camenzind (314) 989-9090

Email or call for prices.

O’Hara Corporation, Casey O’Hara, Tel: (207) 594-4444 or Cell: (207) 542-1853 Email: [email protected]

Balers• JMC 800 (2)

Hamers• FP5T• FP7T (2)• Wire (each)

Turbos• Turbo 18 Ton S.S. CAR36LR• Turbo 20 Ton S.S. CAR40LR• Turbo 18 Ton S.S. SBAR36LR• Turbo 24 Ton S.S.• Turbo 54 Ton S.S.

Turbo Rake Bins• Turbo CB 30• Turbo CB 49

Matthiesen Baggers• Bagger w/Conveyor VL2S• Including Hamer FP7T

Miscellaneous• Vilter 250 HP Compressor 23,500 Hours• Vilter 350 Ton Condenser

REDUCED PRICES!

O’HARA ICE EQUIPMENT FOR SALE

www.OHaraCorporation.com


NORTHEAST (continued)

Plastic liners for clear block makers $1.18/ea Reusable drip pans – from $6.50/ea

Over 500 items in stock for Ice Carvers

Merchandiser Parts for all brands at competitive prices.

(877) 984-5945

Merchandiser Parts for all brands at competitive prices.

(877) 984-5945

VOGT ICE FOR SALE5, 7, 16 & 40 lb. bags.

Water is lab tested for purity. Delivery or pick-up.

Six generations of quality.

Long Island Ice & Fuel Corp. Call (631) 727-3010

WANT TO BUY

Hamer 535 or 540 FFS Bagger; with or without all of the bells and whistles

Call Gregg at (614) 272-8404

WANTEDLeer all-in-one racks.

Contact Anderson Ice Co. at 570-752-3291

EQUIPMENT FOR SALESuction Accumulator - Chil-Con Model # AA24084, 24” x 7’ high,

with boil out coil – Like new condition - $6,000.00

Receiver 12’ x 30” with warming loop used with Vogt ice maker- Like new

condition - $6,000.00

Toshiba 125 HP Motor, Premium Efficiency

Contact Kyle at Long Island Ice & Fuel Corp.

(631) 727-3010 or (516) 790-6842

Vogt Mini tube ice, 8, 20 & 40 lb. bags. All ice is screened, palletized & stretch wrapped.

We deliver or you pick up. Our water is treated with ozone for sterilization. No Chlorine Added!

Martin's Ice CompanyPhone (717) 733-7968 or fax (717) 733-1981 PA

Ice Makers• Vogt Ice Maker - P24A• Morris Ice Maker• Vogt Ice Maker - P118 • Turbo Ice Maker – CAR120• Turbo Ice Maker – CF40SCER• Vogt Ice Maker – P418• Vogt Ice Maker – HE30• Kold Draft Ice Maker

Packaging• Matthiesen Heat Seal Bagger• Matthiesen Baler (3 Available)• Hamer Form, Fill, and Seal

Machine - 310

Handling• Matthiesen Shaker Belt with Stand • Shaker• 12” Stainless Steel Auger

(Several Lengths)• 12” Stainless Steel Shroud

Trough Cover

USED EQUIPMENT FOR SALE1-800-543-1581

www.modernice.com

Check our most recent inventory online at www.modernice.com!

Classified ads

www.IceSculptingTools.com or (440) 717-1940

PACIFIC

ICE FOR SALE

ICE CARVING TOOLS

ICE MANUFACTURE AND SUPPLY BUSINESS FOR SALE HAWAII

• Srong existing customer base • $200K Annual Sales • Vogt Ice Machines • 3-Ton Stainless Steel Auger

• Feed Ice Bin • 2,500lb Storage (Walk-in Freezer)• Isuzu MPR Refrigerated Box Truck • Turn-Key

Call (808) 384-7033 for more information. $80K.


ICE MAKERS• Vogt P34AL w/ high side

refrigeration• Morris 20 ton Nugget Ice Maker,

R22, 460V, w/ stand and cooling tower

• Vogt P118 & 9000• Vogt DX6• (2) 10 ton Frick, LS, low side only

RAKES• LMR 2900 Northstar rake• LMR 4200 Northstar rake

BAGGERS• Hamer 310 FFS (wire tie)

BAG CLOSERS• Hamer 125 & RC• JMC Fuse Air IV• Matthiesen heat seal

BELT CONVEYORS• 6’ - 30’• Space Saver incline conveyor

BLOCK MAKERS• B-56 w/4 HP condenser• Leer BL-39 w/ remote condenser

SNOW REEL/SHAKERS• SS Model 44 w/ 7’ SS stand• 3x8’ SS Snow Reel w/ 13’ stand• 3x5’ GV Snow Reel w/ 10’ stand

REFRIGERATION• 20 HP Krack Condenser• 6.5 HP Bohn w/ evap

BALERS• JMC w/ positive incline• Hamer 3 HD Bale-A-Matic

ITC EQUIPMENT FOR SALE1-800-599-4744 www.itcpack.com

MEXICAN COMPANY IS LOOKING FOR:• Complete block ice plant or just the crane with runways

“12 block crane or more”• Tube ice plant with P34AL from 1990-2000

• A Turbo Tigar 30-40 Tons Ammonia

We disarm and handle all equipment.Federico Johnston

[email protected](011) 52-662-214-23-04

Classified ads

WE SPEAK EN

GLISH

WANTEDPlanning to close, or know somebody who is?

WE BUY ALL TYPES ICE MAKING EQUIPMENT.

REBUILT 5, 10, 20 AND 40 TON TUBULAR ICE MAKERS, NEW TUBULAR ICE MAKERS AND

ICE BAGGING MACHINES

(936) 598-2761www.crrefrig.com

USED MERCHANDISERS WANTEDContact: Ice King, Ryan Maasen

at (480) 423-5464

WANTEDVogt 6000 and Vogt 9000

Call Charlie Bolton

(713) 643-0573Houston, TX

FOR SALE

2005 12 Ton Kamco Bin in good condition. $5000.

Contact Greg LeBlanc at Orange County Ice

409-920-0037Bridge City, Tx.

FOR SALE(1) Vogt P118 Reconditioned.

Runs on R404 Freon.(1) Mini Tube Vogt, air-cooled 404 Freon(1) Mid Tube Vogt, air-cooled 404 Freon

(1) Rebuilt CB P118

Call Charlie Bolton (Houston, TX) (713) 643-0573

EQUIPMENT WANTEDVOGT´S P24´s and P34´s used in any conditions

only MID or LARGE ice.

Ice RAKE 30 tons or less used

CONTACT US BEFORE YOU SELL! [email protected]

809-350-8297

SOUTHWEST

ICE EQUIPMENT

Leer’s product innovation and industry leadership is once again crystal clear with the introduction of the new Ice Breaker TM – providing a superior selling experience for Ice Companies with the desired buying experience for consumers.

Search for those new locations where there is a demand for ice, but currently no supply – rest stops, parks, marinas, campgrounds, state and county fairs. Set an Ice Breaker at these strategic locations and begin retailing your own ice - 24/7. Your profit potential is limitless.

Sell more ice, more often with the Ice BreakerTM and open up new channels of opportunity and profitability.

Leer heralds the Dawn of a New Ice Age – Retailing your own Packaged Ice

Call: 800-766-5337 or Visit leerinc.com

– ANYWHERE, ANYTIME

LEER_Service Ad_RefigMag.indd 1 9/1/15 8:57 AM

refrigeration magazine december 2015

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