Bright prospects for Edwards’ solar units

Perth-based water heater pioneer Edwards Hot Water is continuing to expand its export business, which has grown from four markets in 1990 to 60 countries today.

Edwards is one of the largest manufacturers and marketers of solar hot water systems in the world. 

The company, which was established by Alan Edwards in 1963, markets its solar hot water systems through Africa in countries such as Botswana, Zimbabwe, Morocco and Tunisia, as well as Chile in South America, and through a strategic alliance with SunEarth Inc in the US.

In addition, it has strong European markets in Italy, France, Croatia and Switzerland, and a strong presence in China and South-East Asia, and New Zealand.

Edwards export marketing manager Vaughan Boultwood, who has been responsible for company’s export activities from the outset, told WA Business News that Europe was the most lucrative market.

“Our export growth has been a regional progression and we have followed where the natural demand has taken us, but there have been a combination of factors that has assisted growth in Europe,” he said.

“Increasing oil costs and a trend across Europe to reduce greenhouse gases has opened the door for renewable energy alternatives, like solar hot water.

“Exchange rates have also been favourable and there are government incentives to be had in some European countries to help deal with the greenhouse issue.”

Edwards and other exporters to Europe also benefit from affordable freight rates.

Mr Boultwood said the imbalance between goods imported from Europe to Australia led to an excess capacity of container space on the return journey, which in turn created a cost-effective environment for exporting Edwards’ hot water systems to European markets.

This, combined with Edwards’ strong reputation as long-term manufacturer in the industry with a demonstrated know-how and technical expertise, helped to make the brand very robust in the international arena, he said.          

Capitalising on its position in Europe, where its competition includes manufacturers from Israel and Greece, Edwards has developed new business plans for the UK, Ireland, Poland and Romania.

Edwards applies a rigorous research program before entering a new market.

“We conduct a lot of desk-top research initially, before progressing to on-ground research in the market, and then participate in trade exhibitions to spread awareness,” Mr Boultwood said.

Typically the company will then appoint an importer or distributor to handle marketing and sales in offshore markets.

One such country where this process is being rolled out is Thailand.

Edwards was active in the Thai market in the early 1990s, but its presence declined after the Asian economic crash of the late 1990s. Now, with the assistance of the Thailand-Australia Free Trade Agreement, which came into force in January 2005, it is pursuing domestic and commercial opportunities in Thailand. 

The company is currently supplying solar water heaters through two distributors in Thailand, targeting the hotel and resort industry, as well as the middle-class residential market.

The terms of the TAFTA have made the market more accessible with tariffs, which used to be around 30 per cent in the industry sector, gradually being phased out.

“Companies new to Thailand need to understand the culture and prepare their product for the local market and culture, and above all it is very important to work hard to build a good relationship,” Mr Boultwood said.

The Edwards brand is part of the Rheem Australia group, which also includes another well-known Western Australian solar water heater company, Solahart.

Rheem has a stronger focus on oil and gas heating, while Edwards and Solahart compete in the solar space.