Enerquip Thermal Systems sets the standard for excellence

Cutline: Enerquip Thermal Systems is located in Medford and has become an industry standard for quality.

By Arrielle Eckhardt, The Star News

You know you’re doing something right as a manufacturer when your customers set your products as the quality standard, and 97% of your customers would recommend you to other companies. Enerquip Thermal Solutions has found the key to success and has unlocked a top spot in the heat exchanger and industrial heater markets.

Enerquip is a manufacturing company that builds thermal solutions for a wide variety of industries. They stock several types of sanitary off-theshelf heat exchangers that are ready for purchase, and they also create personalized, high-quality products that adhere to their customer’s needs.

Industries

“When we talk market segments, it would be hard to think of one that we are not in. We’re really well diversifi ed,” said Enerquip’s President & CEO Jeannie Deml about the wide variety of industries Enerquip works with. These industries include food and beverage, dairy, pharmaceutical, chemical, asphalt, tank terminal, biodiesel and renewable energy, refining, pet and personal care, and more.

Enerquip has a strong foundation in the sanitary industry and is one of the world’s top two suppliers of pharmaceutical exchangers. Enerquip is a well-established manufacturer. Its sanitary and industrial equipment has become the standard by large companies throughout the country and the world.

“We get constant praise about our responsiveness to customer’s needs,” said Troy Weik, Sales and Channel Manager at Enerquip. Weik was a customer of Enerquip’s for many years before joining the team and was always impressed with its products and service. Enerquip’s products, responsiveness, and time management skills have created a trusting relationship with their customers. They know around-the-clock production is imperative for many of their customers, so they stock a variety of equipment for same-day shipment.

Products

Enerquip’s products include sanitary and industrial shell and tube heat exchangers, vapor condensers, industrial thermal fluid heaters, asphalt heaters, bayonet immersion heaters, steam generators, suction heaters, waste heat economizers, and tank heating coils. They build equipment in various materials, from carbon steel to stainless steel and other higher alloys.

“A shell and tube heat exchanger either adds heat or takes away heat from a product without mixing the utility fluid with the product,” said Ron Herman, Director of Business and Development, when explaining the purpose of a heat exchanger. Depending on the application, the product runs through the tubes while being heated or cooled through the shell. Enerquip’s experience is vast. They manufacture a variety of shell and tube heat exchangers in various sizes and for many applications. The products can range from water and salsa to chemicals and asphalt.

Making a heat exchanger starts at the waterjet, where many parts are cut. The parts, such as channels and tube sheets, are then sent to the machine shop, where certified CNC machinists drill project specified tube holes, O-ring placements, and other essential details. The tubes for the exchangers are cut and bent to fit the specified project length. Then ASME code welders perform welding for fabricated channels, shell assemblies, and more. The units are assembled, hydro-tested, and given a final inspection. During hydro-testing, the equipment is pressure-tested for strength and leaks. The heat exchanger, or other equipment, is filled with liquid and pressurized to its specific test pressure.

Passivation and liquid penetrant testing can also be done at the customers’ request. Passivation creates a passive surface layer that is more resistant to corrosion and cleans the unit in the process. During liquid penetrant testing, a dye is put onto the exchanger to test the welds for cracks and imperfections that are harder to see during a visual examination.

“We build our equipment to run efficiently, clean easily and last 20 to 25 years,” said Herman about Enerquip’s high-quality equipment. The quality of Enerquip’s products is a direct reflection of their team’s pride in their work and their focus on customer satisfaction.

History

Pep Simek played a large part in the success that Enerquip has today. In 1985 Simek purchased Conseco and rebranded the company as Enerquip. Before the purchase, Conseco primarily built large boilers for military destroyers under government contracts. When the company went bankrupt, workers reached out to Simek for help. At the time, Simek owned Tombstone Pizza. He and a few of Tombstone’s key executives decided to take a chance and purchase Conseco out of bankruptcy.

“There were days when Enerquip was not being profitable early on, but Pep steered the course and believed in the people,” said Deml about Enerquip’s rough start. Eventually, the other owners moved on, but Simek held on strong. In the late ‘80s, Englishman John Holroyd bought into Enerquip. He had a varied background which included ground-breaking engineering advancements in the pharmaceutical and medical industries.

Holroyd led the company into the market of stainless steel heat exchangers. Enerquip’s first big break was aligning with Ecolab, a global leader in infection prevention solutions. Afterward, Holroyd continued leading Enerquip into the sanitary market, eventually leading to Enerquip’s role in the pharmaceutical world. After delving deeper into the world of stainless steel, Enerquip moved away from its government work and focused on these new, more sanitary industries.

In an effort to bring more production in-house, in 1999 Holroyd purchased a small electropolish business. Electropolishing is a process of removing a layer of metal to reduce surface roughness. It’s often required in pharmaceutical and other sanitary applications.

When Holroyd moved to southern Wisconsin to focus his attention on this new venture, Deml became General Manager of Enerquip. Enerquip owned the electropolishing business until 2005. During that time, they gained much knowledge about electropolishing and brought the service in-house at a much smaller scale.

“We owe a lot to John and Pep; they persevered all those years. I think many people would have given up, but they didn’t,” said Deml when talking about how grateful Enerquip is to Simek and Holroyd and their significant role in leading Enerquip down the path to success.

In 2008, both Simek and Holroyd retired, and the company sold to a private investor, James Nielson. Enerquip was thrilled to hold its private ownership. The Nielsons have a hands-off approach where they trust the leaders of Enerquip to grow the company, be profitable, aspire to the highest culture possible, and maintain a safe working environment. The team says it’s a terrific, excellent relationship.

Jeannie Deml started at Enerquip in 1995 as an administrative assistant without knowledge of heat exchangers. Deml’s leadership skills and desire for excellence brought her to the well-deserved position of President & CEO in 2011. Deml has done an excellent job running Enerquip and has only led them further into success and expansion.

“Jeannie’s very modest, but it all comes down to leadership, and her leadership is above and beyond any place I’ve ever worked,” Weik said when talking about Deml’s role in Enerquip’s company culture and success. One part of Deml’s leadership is her genuine kindness and care for Enerquip’s employees. Weik conveyed sincere gratitude and respect recalling a time when Deml was there during a family medical issue.

“I mean, how many CEOs care that much? It’s just amazing,” Weik said about this act of kindness and sincerity. Deml’s actions and leadership skills have helped shape Enerquip’s company culture and fundamentals that keep Enerquip successful.

Deml led Enerquip to do a building renovation and expansion back in 2015. The renovation goal was to enhance the work environment in the offices and manufacturing plant while setting the company on a path to future growth. The renovation included 37 upgraded office spaces, windows that provide natural light, and two storage towers that allowed Enerquip to save much-needed manufacturing space. One tower is 22 feet tall, and the other is 56 feet tall with a storage capacity that can hold 200 tons of material.

Enerquip plans to continue its growth and already has done so with its involvement in new emerging industries and its 2021 purchase of American Heating Company. This summer, Enerquip and American Heating Company are moving forward together as Enerquip Thermal Solutions.

The former American Heating Company’s products are built out of Beggs, OK, by a small but dedicated team. Its main products are industrial heaters, economizers, steam generators, and tank heating solutions. You’ll find American Heating Company industrial heaters in large and small tank terminals and asphalt processes across the country. The company is well regarded in the industry, has a strong product line, and a wonderful, hardworking staff. It was a match made in heaven.

Employees

“Why would you leave such an organization that appreciates the people as Enerquip does,” said Weik when talking about the longevity of Enerquip employees. Enerquip has very low turnover rates double the national average tenure. The team’s longevity is partly thanks to the company culture that Enerquip lives by and the gratitude that Enerquip has for its employees. This culture of appreciation, care, and family runs throughout the organization.

“Enerquip lives by its culture. It’s not just something we say. And part of that culture is understanding the value of promoting within,” said Lindsey Mayer, Marketing and Communications Manager at Enerquip. Many of the leaders at Enerquip have moved up the ranks to earn their leadership roles. The company continually works to help its employees grow through education, training, internal workshops, and more.

Enerquip also has opportunities for people who want to return to the community after college or technical training. They recently hired two engineers out of UW-Stout who are already excelling in sales and design. In addition, they enjoy working with the local high school’s internship programs and have had success with subsequent recruitment. They hope to continue to build on these partnerships in the future.

Enerquip has a strong team because they hire the best to be the best. They know that employees make a great company. It is important to them that they hire people who fit the culture and live by the 31 fundamentals that make up their unique culture.

Company Culture

Company culture is one of the things that keeps Enerquip running so well. Enerquip’s relationship with its employees, vendors, customers, and the community is a high priority, and you can feel this when speaking to Enerquip’s leaders. By establishing and maintaining these well-rounded relationships, Enerquip has created a backbone on which they can rely.

Family Atmosphere

“I think that the family atmosphere goes above and beyond the saying of a family-style company, “We’re all family here. We live that,” said Tim Strebig, Operations and Facilities Manager at Enerquip. Strebig, along with the other leaders of Enerquip, firmly believes that this type of work relationship correlates to each employee’s loyalty towards Enerquip and its team members. The company is less like a well-oiled machine and more like a tight-knit family where everyone is willing to go the extra mile for one another.

One way the company grows its culture is by having regular gatherings on company time. These gatherings can include breakfasts, potlucks, cookouts, and even beanbag tournaments. The most important part is that everyone in the company is invited. You may find a divide between office and shop in many companies, but that is not the case for Enerquip. There is no clique for each job description; everyone mingles and knows who everyone is.

Enerquip even has a “getting to know you” segment in its weekly newsletter, The Scoop. This segment highlights one employee per week and gives insight into who they are outside work. This segment helps employees become more familiar with each other and helps build employee relationships.

“When we say Enerquip, it’s not office and shop. We’re all the same. We all work for Enerquip,” said Strebig when talking about the unity of Enerquip employees. Deml followed this by recalling a beanbag tournament in which she was teamed up with a welder at Enerquip. But this unity goes far beyond gatherings and beanbag toss. In times of crisis, the Enerquip team is there for one another.

Recently an employee from Enerquip’s location in Beggs, OK, had suffered from a tragedy, and employees from the Medford location reached out to them, offering emotional and financial support. While many teammates had never met this employee, they showed them care. On many other occasions, staff have donated money, organized meals, or lent a helping hand to a coworker needing help.

The employees also bound together during moments of celebration. The company throws a baby shower for any employee expecting their first child, and everyone joins in. And to celebrate holidays, the company brings in food and other goodies. For example, a gift bag for the 4th of July could include food to grill, s’mores ingredients, and a cooler.

The company also shows gratitude to employees by providing snacks in the break room every Thursday and recently established summer flex hours. During summer flex hours, the leaders at Enerquip try their best to get everyone out at noon on Fridays. This allows employees to enjoy their summer and spend extra time with family and friends.

Work Environment

The conditions of the workplace also positively impact Enerquip team members and the pride that they have in working for the company. A renovation was done to the building a few years back and brought new life into the company. Along with completely upgrading the office space of the building, several large windows were brought in and provided natural sunlight. New lights were also installed to eliminate the previously harsh yellow lighting.

As for the shop area, you’ll find clean, up-to-date machines to ensure the employees have the best of what they need. The shop is very clean, with open space to move materials around safely. A unique feature of the shop is that each welder has their own station that is entirely theirs and marked by a personalized, engraved sign.

The loyalty that each employee has towards Enerquip is ignited by the flexibility, kindness, and transparency that is provided by the company leaders. By being understanding and transparent to their team members, it allows them to do the same and have pride in the company they work for.

Donations

Another aspect of Enerquip’s company culture is their community giving and employee match donation programs. The main focuses of their community giving donations are education, human needs, and civic and community programs. They strongly support the causes of each program they donate to and ensure that each cause matches the company’s values.

In order to get Enerquip employees involved in the giving, the company has a match program up to $500 per employee per year. This means that each employee can donate their time or money to an organization of their choice, and Enerquip will match it. If the employee is donating their time, each hour of volunteering is $10 that Enerquip will contribute to that cause.

In addition to these programs, Enerquip team members volunteer on several boards and non-profits that focus on building a stronger community.

Fundamentals

“People run the company like they are the owner,” Deml said when talking about the pride each team member has in working at Enerquip. Along with the amazing leadership, work environment, and family atmosphere, the 31 fundamentals of the company help fuel the pride and excellence of each Enerquip employee.

Deml noted that the concept of fundamentals came from the Ritz-Carlton, a company known for excellent service. These fundamentals were presented through Vistage, a peer mentoring membership for CEOs, business owners, and key executives. Vistage provides coaching and peer mentor sessions to help small business leaders reach and maintain success. Enerquip, and Pep Simek, were part of one of these original peer mentor groups, which continues to prove essential today.

“I believe as a leader there is nothing I shouldn’t be willing to do that I would ask somebody else to do,” said Deml when talking about Enerquip’s first fundamental, servant leadership. This fundamental was requested by Deml herself and shows the importance of leading with respect and understanding.

To establish these fundamentals as behaviors, the company has a fundamental of the week that everyone focuses on. The fundamental is mentioned during weekly emails, the team newsletter, and weekly team meetings.

To encourage the use of these fundamentals, Enerquip’s weekly newsletter includes a segment with an employee explaining what the fundamental means to them and how they use it. Employee evaluations also consider how each employee incorporates these fundamentals into their daily work routine.

Fundamental #18 focuses on practicing the “human touch.” This means that you are paying attention to things that make a person special and ensuring that they know that you care about them and that they’re not just a transaction. One way that Enerquip practices this fundamental is by writing personal Thanksgiving cards to people who work with Enerquip. These cards could be written to customers, vendors, or others that provide a service to Enerquip. The goal, always, is to show gratitude and sincerity.

The leadership team feels very strong about these fundamentals and feels that they set Enerquip apart from other companies and allows them to have a foundation of extraordinary people.

“We believe if we can practice and embrace these behaviors both personally and professionally, we will be successful. We feel they are the core to being successful,” said Deml.

[caption id="" align="alignnone" width="366"] A worker bends a tube to the specifications set for the project. Bundles of dozens of tubes go into making heat exchangers.[/caption] [caption id="" align="alignnone" width="242"] Enerquip serves many businesses from petroleum to pharmaceuticals and from dairy to beverages and works to exacting standards.[/caption] [caption id="" align="alignnone" width="242"] Enerquip values the company’s workers as the most valuable resource. From senior management to the shop floor, there is a commitment to putting out the best product for their customers.[/caption] [caption id="" align="alignnone" width="242"] Built for a biofuels application, these tube bundles were made with Duplex 2205. Duplex 2205 is a nitrogen- enhanced stainless steel. It’s characterized by its high yield strength, good fatigue strength, and outstanding corrosion resistance in severe environments. Enerquip’s custom heat exchangers may be built with a variety of materials, including carbon steel, 304L and 316L stainless steel, Hastelloy, Alloy 20, Monel 600, AL-6XN, Titanium, and more.[/caption] [caption id="" align="alignnone" width="241"] Baby showers, special meals and even bean bag tournaments are small gestures the company does to engage its workers.[/caption]