ventilation fan-marketing paper

Preliminary Market Background Report

for

Residential Ventilation Fans

Prepared by

The Cadmus Group, Inc.

for the

ENERGY STAR Program®

Climate Protection Division

U. S. Environmental Protection Agency

Washington, D.C.

Contract No. 68-W6-0050; Work Assignment No. 0008AA-25

Deliverable: June 29, 1999

Contents

Executive Summary

Introduction

1. Description of the Technology

2. Energy Use and Potential Savings in Ventilation Fans

3. Voluntary and Regulatory Considerations

4. Marketplace and Market Actors

5. Market Barriers

6. Market Potential

7. Preliminary Conclusions/Recommendations

Appendix A:

Contact Information

Calendar

Glossary

Bibliography

June 29, 1999 DRAFT- DO NOT CITE 1 The Cadmus Group, Inc.

Executive Summary

Altogether 7 million new ventilation fans composed of simple, inexpensive components are installed every

year in American homes. Broan and NuTone, both owned by Nortek, Inc., sell about 90 percent of the

new fans, while Panasonic and others provide the rest. Although grossly inefficient, most ventilation fans

are purchased by builders and contractors and then operated by the homeowners for less than one hour a

day because the fans get the job done. The pollution abatement potential of efficient residential ventilation

fan units is small, but such fans could play an interesting role in EPA’s energy-efficiency transformation

efforts under three scenarios. Efficient ventilation fans could:

< Become part of EPA’s ENERGY STAR Homes Program. ®

< Be examined for market niches such as whole-house ventilation.

< Be targeted for top-of-the-line new units and replacements.

Noise reduction—not cost or efficiency—is the primary driving force for persuading manufacturers to

produce better units. The technology for more efficient, quieter fans is readily available, but preliminary

analysis reveals that the energy savings will not likely pay for the better product.

Introduction

This preliminary background report is intended to guide further analysis for evaluating the feasibility of

developing an ENERGY STAR label. As such, the report presents preliminary, readily available information

regarding:

< Technological considerations, such as technology, cost, and potential for efficiency gains.

< Market factors, such as market size, structure, segmentation, key players, and distribution

channels.

This paper assesses the market for the residential ventilation fans described below. It defines the product,

identifies the producers, and provides preliminary estimates on supply, demand, and other market

conditions. This market information will be used by the Climate Protection Division (CDP) to assess the

condition of the market and determine whether ventilation fans represent a good candidate for labeling.

One definition from the Merriam-Webster’s Dictionary, Tenth Edition, describes “ventilation” as a system

or means of providing fresh air. The American Society of Heating, Refrigerating, and Air-Conditioning

Engineers’s (ASHRAE) 1997 Fundamentals Handbook defines “ventilation” as the intentional

introduction of air from the outside into a building, and further subdivides it into natural ventilation and

forced ventilation. In turn, forced ventilation—also called mechanical ventilation—is the intentional

movement of air into and out of a building using fans and intake and exhaust vents.

For this report, “ventilation” means mechanical ventilation used to provide fresh (outside) air. The

analysis focuses primarily on bathroom exhaust fans and kitchen or range exhaust fans. Most


observations apply equally well to other ventilation fans, such as thru-the-wall ventilators, attic fans,

whole-building ventilators, and window fans. This report does not cover ornamental ceiling fans (paddle

fans), box, oscillating, and other fans used in the home. Those fans provide comfort cooling or heating by

moving air around within a housing unit and may play an important role as part of an energy-efficient

heating, ventilation and cooling (HVAC) system. This report addresses only the technical and marketing

considerations of the ventilation fan itself, not the performance of the entire ventilating system to which it

belongs. Where appropriate for understanding the product, a few HVAC considerations are discussed to

provide clarity regarding the proper use of ventilation fans.

1. Description of Technology

Table 1 presents the different criteria used to classify residential ventilation fans. The duration of

operation and noise level are behavioral factors of critical importance in the residential ventilation industry.

Technical criteria for classifying fans include location in the building, direction of air flow, and motor type.

Table 1. Criteria and Classification of Residential Ventilation Fans

According to duration of operation Spot Continuous

Noise level Low noise High noise

Pressure differential Exhaust Forced air

With respect to ventilated area Inside Outside

Port arrangement Single port Multi-port

Direction of air flow Axial Centrifugal

Motor type Shaded-pole Split capacitor

Source: The Cadmus Group, Inc.

Spot, Intermittent, and Continuous Ventilation FansTypically, residential ventilation fans are used for a few minutes to remove odors or humidity. Over

kitchen ranges, this is referred to as spot ventilation or localized ventilation. Used in a bigger space such

as a bathroom and activated by switches, it is called intermittent ventilation. Some in the industry would

consider spot ventilation to include both the ventilation fan in a bathroom and the one over a range in a

kitchen.

To provide improved air quality, continuous ventilation of a housing unit can be added to a home. Only a

few places in the United States require or recommend continuous ventilation to ensure indoor air quality.


Table 2. Typical Uses of Fans by

Location

Inside house Outside the house

• bathroom

• ceiling/wall exhaust

• other rooms

• range down drafts

• range hoods

• in line

• powered attic ventilators

• exterior-mount room

ventilators

• whole-house


Washington State, Oregon, Minnesota, and Vermont have adopted ventilation codes requiring continuous

ventilation for new homes. Certain industry specifications also require adequate ventilation to ensure the

health and comfort of the occupants. Interestingly, some northern European countries now require by law

the use of continuous ventilation to ensure residential indoor air quality.

Fan NoiseNoise level is an important criteria in the selection of residential ventilation fans. People prefer quiet fans.

Noise level and cost are the most important criteria in the selection of a ventilation fan from the

perspective of home builders and home buyers. Because of the tight range of noise, its level is measured

in sones—a linear measure of intensity—and not in decibels. Any ENERGY STAR label should be

conscious of the sound performance of in-house fans.

Forced Air and Exhaust SystemsForced air systems bring outside air directly into the home. In the process, they raise the pressure indoors

slightly with respect to outside pressure. This slight positive pressure causes the air in the home to leak

out through cracks in doors, windows, and other openings. In contrast, exhaust systems force air from the

home to the outside. Because a partial vacuum is created as the air leaves, fresh outdoor air (induced air)

comes into the house via small leaks or passive vents. Forced air systems can be advantageous for

housing units with a combustion heating system because the higher pressure keeps fumes from leaking

into the home, or a flame from extinguishing. Using an exhaust fan may cause enough negative pressure

within the unit to draw combustion fumes such as carbon monoxide into the residence, whereas the forced

air system ensures positive pressure within the space. Table 2 shows typical locations of fans.

Many spot ventilation fans are exhaust

systems, which push air out of the home.

Bathroom fans are typically located in the

bathroom ceiling, and kitchen exhaust fans are

directly over the range. Most housing units

have one kitchen and several bathroom fans to

exhaust air on demand. Bathroom fans

typically exhaust 50-100 cubic feet per minute

(cfm), while kitchen fans typically move

200-500 cfm.

Whole-house, full mechanical ventilation is uncommon in the United States because in the past housing

units seemed to have enough natural infiltration to allow fresh air into a home. Currently, builders tightly

seal new homes to better control the interior climate and make the homes more energy efficient. This, in


Fig. 1. Fantech multi-port assembly

Fig. 2. Orix axial fan

turn, makes home ventilation and indoor air quality a concern for homeowners. Drawing in outside air

results in added heating and cooling loads in the winter and summer seasons respectively, especially in the

northern and southeastern states when all windows are shut for long periods. Energy consumption is

inextricably linked to home ventilation and indoor air quality. Fans can be inside or outside the housing

unit’s living space. Table 3 shows unit sales for both applications.

Table 3. Ventilating Fans by Manufacturer and Location in House

Manufacturer Inside House Outside House

Norteck-Broan 2,700,000 300,000

Nortek-NuTone 2,700,000 300,000

Patton, Air King, Panasonic 900,000 100,000

Others 900,000 100,000

Source: The Cadmus Group, Inc. from interviews with industry representatives.

Single Port and Multi-Port ArrangementsMost housing units have a single port arrangement for their

ventilating fans, which means there is only one inlet and one outlet

for each fan. Some applications, however, include a multi-port

arrangement. This means a single fan assembly is located remotely,

usually in the attic, and connected via ducts to several rooms in the

residence. Figure 1 shows two air intakes leading to a rooftop

exhaust. Air may either be exhausted out of or forced into the

housing unit. Multi-port arrangements are more common for

continuous ventilation where required by code, or desired as an

amenity.

Centrifugal and Axial

Ventilation FansDepending on the direction of the air flow,

fans may be either axial or centrifugal. In axial fans, the fan blades push the air

in the same direction as the axis of the fan. In centrifugal fans, the axis of the

fan is perpendicular to the air flow.

Axial fans are inexpensive and may have capacities in excess of 1,000 cfm.

They consume about one-half the energy of a centrifugal fan while delivering


the same amount of air. Many existing range hood fans are axial fans. The disadvantage of axial fans is

that they generate about twice the noise of centrifugal fans. At home, people are likely to tolerate odors

and humidity more readily than noise. Placing axial fans outside the building envelope removes the source

of the ventilation system’s noise. Because the performance of axial fans deteriorates with increases in

the static load, improper duct work may reduce air flow and increase power consumption, leading to

reduced motor life. In fact, axial fans work best in unducted applications or with minimal ducting.

Depending on the angle of the blade with respect to the airflow, manufacturers build three types of

centrifugal fans: radial, forward curved, and backward curved. Radial fans are the simplest type of

centrifugal fan to manufacture. Because they do not easily clog up with contaminants, such as dust, radial

fans are also reliable for the occupants. A more efficient type of centrifugal fan is the forward curved

fan, which is typically used in low-flow, low-pressure HVAC applications. Forward curved fans have

better efficiencies, but are a little more expensive to manufacture. The backward curved fan is the best

performer of the centrifugal fans. It requires a faster speed to operate in a more efficient range on its fan

curve. Some manufacturers now offer double-suction centrifugal fans, which take in air from both sides

of the impeller, increasing the fan’s performance.

The efficiency of centrifugal or axial fans used in home ventilation devices is about 10 percent or less.

For a comparison, typical centrifugal or axial fans in larger HVAC applications commonly have

efficiencies of about 50 percent or better.

Motor TypesVentilation fans use single-phase motors. A source of torque must exist at some angle relative to the

stator winding to get the motor started. This is accomplished in shaded-pole and split capacitor motors in

different ways. The shaded-pole motor creates starting torque by having a shorted winding of relatively

high impedance (shaded coil) placed at an angle from the main stator winding. At starting, the starting

coil provides extra magnetic flux and starts the motor rotating. A capacitor-start capacitor-run motor, also

known as split capacitor motor, creates a phase lag for starting, using a capacitor switched in or out of the

stator circuit at various speeds and loads. Split capacitor motors are capable of supplying the necessary

start-up torque required for ventilation fans.

The most common type of fan used in bathrooms and kitchens is a centrifugal fan directly connected to a

shaded-pole motor. Manufacturers use this motor because it has the lowest first cost. Connected to a

centrifugal fan, it generates acceptable levels of noise. Shaded-pole motors are not governed by any

major industry standard such as NEMA for larger motors. Typical efficiencies for these motors are less

than 20 percent. By comparison, larger motors used in HVAC applications have efficiencies of about 85

to 95 percent. Motor efficiency decreases dramatically with the decreasing size of the motor. Energy

efficiency is not currently a major concern in this market.


While split capacitor motors are more expensive than shaded-pole motors, their efficiencies are better

—in the range of 20 to 50 percent. As a result of this performance improvement, some manufacturers of

ventilation fans are using this type of motor more frequently, especially for the continuously operated

ventilation fans (see Table 4). As indoor air quality becomes a greater concern to homeowners and

communities, this trend will strengthen. First cost rationale may give way to life-cycle cost rationale,

supporting the idea that more efficient ventilation fans are likely to appear in new upscale homes. These

fans may also play a role in programs such as EPA’s ENERGY STAR Homes.

Table 4. Production Share in Ventilating Fans by

Manufacturer and Motor Type

Manufacturer Shaded-pole Motor Split Capacitor Motor

Nortek-Broan 90% 10%

Nortek-NuTone 90% 10%

Panasonic 10% 90%

Others 90% 10%

Source: The Cadmus Group, Inc. from interviews with industry

representatives.

2. Energy Use & Potential Savings in Ventilation Fans

Energy use in residential ventilation fans depends on three factors: (1) efficiency of the unit itself (motor,

impeller and housing); (2) correct application by design—specifically, correct sizing of unit and design of

duct system; and (3) air exchanges with the outside.

On average, new homes have two to three bathroom fans and one kitchen fan. Owners operate these

fans about one hour a day on average. The typical ventilating fan is a shaded-pole, centrifugal, exhaust,

single port in-house fan that delivers 1 cfm of air per watt at 0.1" water gauge (wg) or less. (See

Glossary for description of water gauge.) Some manufacturers offer fans of up to 5 cfm/W, a 500-

percent improvement. These fans, however, can be up to five times more expensive than the typical 1

cfm/W fan. For comparison purposes, a typical commercial or industrial fan can deliver up to 20 cfm/W.

Therefore, residential ventilation fans are ripe for large efficiency improvements

Fan EfficiencyThere are three ways of improving fan efficiency: (1) use more efficient motors; (2) use more efficient

blades; and (3) improve the housing of the unit.


If one were to define the ventilation fan as a system consisting only of the motor, the impeller (fan blade),

and the housing assembly, a conceptual energy balance can be established. Table 5 illustrates energy use

and saving opportunities for such a system because energy transfers occur largely in these three

components.

Making better motors is the top technological option to improve the efficiency of ventilation fans, followed

by making better impellers. A split capacitor motor or a four-pole condenser motor with higher efficiency

impellers would raise the efficiency of fans by two to five times.

Table 5. Energy Use and Energy Saving Potential in Ventilating Fans

Use Type Efficiency Typical losses Potential

Motor: Shaded-pole 10% - 20% 80% - 90% very large

Motor: Split capacitor 20% - 40% 60% - 80% large

Fan: Axial very low up to- 95% very large

Fan: Centrifugal extremely low up to 99% very large

Housing very low up to- 95% very large

Source: The Cadmus Group, Inc. Estimates from interviews with industry representatives.

Note that no known organization measures efficiency in motors of this size.

To achieve better impeller efficiency, either the blades must be larger, or the blades’ angle of attack must

be adjusted to better propel the air. For the right price, some manufacturers use larger centrifugal fans to

increase the efficiency and reduce the required fan speed. A consequence of this slowdown is reduced

sound as well. Larger surfaces also increase the performance in axial fans. To benefit from the energy

savings while avoiding the noise, these fans should be mounted away from the occupied space (an

exterior mount fan).

Fan housing may play a smaller, but still important role in improving the performance of ventilation fans.

The most important gains may be achieved by introducing vanes to direct the flow of air.

Application ConsiderationsThe improper installation of the ducts in a home ventilating system results in poor performance of the

ventilation fan. Ventilation fans are specified at a nominal static load of 0.1" wg, although manufacturers

supply performance curves for each of their products. This low pressure is considered nearly “free air.”

The installer of the ventilation fan should use this curve to properly match the fan with the duct system.

A builder buying wholesale may install a typical 50 cfm bathroom fan in homes with different lengths or

diameter of ducts. The longer the ductwork or the smaller its diameter, the greater the static load on the


fan, and the poorer the performance of the ventilating system. Under these circumstances, a larger fan

may be required to provide adequate airflow. Any ENERGY STAR label must clearly require the proper

installation of a ventilating fan, or the label will lose its meaning.

Ironically, when a centrifugal fan selected for operation in nearly free air is given more static load, the

energy consumption decreases. The fan actually operates in a more efficient range on its curve. The fan

delivers less than the specified airflow, but it consumes less energy. Proper design practice involves

estimating what the static load will be on the fan so that the proper fan will be selected. Some

manufacturers design their fans for operation against a higher static load. These fans can have a higher

cfm/W rating. Because larger ventilation fans inherently perform better than small home ventilation units,

one way to achieve better efficiency is to manufacture a large ventilation fan. The disadvantage remains

the higher first cost.

Another important application consideration that affects energy efficiency involves the use of controls.

While most bathroom and kitchen fans are activated by manual switches, automatic systems may play an

important role in maintaining air quality while reducing energy use. Automatic control devices, such as

occupancy, temperature, and humidity sensors, may be installed in attics, bathrooms and other locations

with ventilation fans.

Outside AirSavings calculations may be off by many orders of magnitude if the role of outside air is not carefully

considered. As discussed in the section on exhaust fans and forced air fans, all new air has to be

conditioned to the indoor space. In humid or extreme temperatures, this means that the amount of energy

needed to dry, cool, or heat the air will be many times in excess of any savings from a more efficient fan.

Although not directly related to the efficiency of the fan, this factor is too important to underestimate.

Ventilation Fan EconomicsAs discussed above, technology is available to significantly increase fan efficiency. Unfortunately, when

looking at the fan alone, cost effectiveness (on a life-cycle basis) is unclear; and potential energy savings

per fan are small given that fans are used only intermittently (e.g., 1 hour per day). There are, however,

several approaches that could change the dynamics of this seemingly unprofitable proposition.

< Cost-effectiveness can be achieved through significant production increases that translate into

new economies of scale, where perhaps the increase in unit cost is very small and

manufacturers can be convinced to take on the extra cost. The upcoming engineering analysis

paper may provide more insight into this possibility.

< The increased cost can be rolled into a bigger energy savings program, such as ENERGY STAR


Homes, where lighting, appliance, and insulation investments provide enough pay back to cover

the incremental cost of the more efficient fans.

< Ventilation fans may play a role in climates where their operation can reduce air conditioning

or heating costs. Thermostatic operation of attic ventilators, as well as “free cooling” fans

operating at night, deserves to be considered in a later paper.

To gain perspective on the operating cost of a home ventilating fan, it is useful to consider its power rating

compared with a light bulb. A typical bathroom fan is rated at 50 cfm, with efficiencies on the order of 1

cfm/watt; therefore, the fan will consume 50 W. Operating the fan about one hour per day is the

equivalent of turning on a 50 W light bulb under similar conditions. The power consumption in this

scenario would be less than 20 kWh/year or less than $2.00/year. Doubling or tripling the efficiency

would save users about 10–13 kWh/year or $1 to $1.30 on each fan for a total of up to $5/year.

Purchases of efficient fans cannot be justified from this type of energy savings alone.

3. Voluntary and Regulatory Considerations

The largest voluntary organization for ventilation fans is the Home Ventilating Institute (HVI)—a division

of the Air Movement and Control Association (AMCA)—which includes all the major ventilating fan

manufacturers. HVI publishes a list of its members’ fans along with the respective air flows and sound

levels, but no data on energy use. The next HVI listing to be published in 2000 will include the power

consumption of fans—an indication that the marketplace is becoming more interested in energy.

Other voluntary organizations for ventilation fans are BOCA (Building Officials Code Administration),

ICBO (International Congress Building Officials), and SBCCI (Southern Building Code Congress

Institute). These organizations provide codes for the industry which are adopted by most states and sub-

jurisdictions. Their documents are being combined into one code under the auspices of The International

Code Council, which has already published the 1995 International Mechanical Code and is planning to

publish the 2001 International Building Code. Table 6 summarizes voluntary and regulatory

considerations.


Table 6. Relevant Voluntary and Regulatory Considerations

Governing Body Voluntary Regulatory

Energy-related testing protocol, Demand-side Safety, Standards, Codes and

management programs Ordinances

Industry ASHRAE Underwriters Laboratory

Trade Association Home Ventilating Institute (HVI), BOCA, ICBO, SBCCI NA

Federal Some housing authorities are now developing References to BOCA, ICBO,

standards (use references to other standards). SBCCI and ASHRAE

State (use references to other standards) WA, OR, MN, VT have some

regulations

Local Varies widely NA

International International Code Council Regulations exist in some

countries

Source: ASHRAE and The Cadmus Group, Inc. from interviews with industry representatives.

ASHRAE-generated guidelines and standards start out as voluntary rules but often become part of law.

ASHRAE does not directly address standards for the performance of the ventilation fan itself, but the

Society does specifically address technical and application recommendations and the important issue of

indoor air quality. LBNL is working on the revision of ASHRAE 62.2 in the Residential Ventilation

Committee. The ventilation fan is key to maintaining this specification. The current ENERGY STAR

Homes partnership requires the use of ASHRAE standard 62, the key elements of which are:

< ensure .35 air changes/hour per person or 15 cfm/person

< operate continuously (note that natural ventilation is allowed to meet requirement)

< avoid condensation in the exterior walls

An ASHRAE technical committee is currently reviewing this standard. Any major changes to it would

probably require further application of continuous ventilation in a housing unit.

As mentioned earlier, some states are beginning to address the ventilation of a housing unit because of

tighter housing unit envelopes. A study done by the Lawrence Berkeley National Laboratory (LBNL)

shows that infiltration in most housing units provides approximately one air change per hour. This exceeds

the current ASHRAE standard 62-1989 (currently under review). Considering this, continuous ventilation

would only be required for tighter, newer homes. Older homes meet the ASHRAE ventilation rate, which

means that existing residential ventilation fans are not really necessary to ventilate the housing unit; they

merely serve to eliminate odors and humidity.


Marketplace and Market Actors

Although precise numbers are difficult to obtain, the market for residential ventilation fans is about

$300 million annually. Manufacturers sell about 7 million units in a year (see Table 7). Nortek-Broan and

Nortek-NuTone make 90 percent of the residential ventilation fans in the United States.

The second tier players are Panasonic, Air King, and Patton. Numerous other manufacturers, such as

Fantech, Aldes, Zonex, Air-King, and Tamarac, make up the rest. Interviews with professionals in the

industry revealed that some manufacturers are eager to see an energy-efficiency standard developed for

the industry.

Table 7. Manufacturers’ Estimates of Annual Production

and Expected Product Life

Manufacturer Units/yr Life

Nortek-Broan 3,000,000 10

Nortek-Nutone 3,000,000 10

Patton, Air King, Panasonic 500,000 10

Others 500,000 10

Total 7,000,000


Table 8 estimates the total revenue for all residential ventilation fans sold in the United States in one

year. Note that these data are composite estimates. Despite the overwhelming weight of Nortek in this

business, the industry is sensitive to competition; and manufacturers were not interested in releasing

exact figures for their products. The governing trade association, HVI, compiles statistics but has not

released them to the public.

Table 8. Estimates of Industry-Wide Annual Sales by Technology for 1998

Technology Type Shaded-pole Motor Split Capacitor Motor

Total Sold 6,300,000 700,000

Revenues $270,000,000 $30,000,000



Wholesalers and retail outlets purchase the bulk of the production of ventilation fans. With 70 percent of

the new fan stock, wholesalers sell to the construction industry. Typically, contractors and individuals

purchase the other 30 percent at retail outlets like Home Depot.

Manufacturers primarily advertise through trade magazines, as listed in Table 9. Readers of these

publications are home builders, home architects, contractors, and remodelers.

Table 9. Primary Stakeholders in the Residential Ventilation Fan Business

Shaded-pole or Split Capacitor Motors

Manufacturers Nortek-Broan, Nortek-Nutone, Panasonic, Air King,

Patton, Fantech, American Aldes

Distribution Channels Wholesalers 70%

Retailers 30%

No vertical integration.

Advertising ASHRAE

Fine Home Builder Magazine

Kitchen & Bath Design News

Heating, Piping & Air Conditioning

Design/Build Business

Custom Homes Magazine

Qualified Remodeler Magazine

Residential Architect Magazine

Education HVI conducts seminars

AMCA conduct seminars (more commercial)


Scheduled conferences and trade shows are presented in the Appendix (Table A.4). Of this list, the

ASHRAE winter meeting to be held February 5–9, 2000, provides the most timely opportunity to meet

Broan, NuTone, and Panasonic representatives to discuss EPA’s Labeling Program. An earlier

opportunity may be available at the Energy Efficient Builder’s Association meeting in Baltimore,

November 4–7, 1999.


Table 10. Market Barriers

Barrier

Cost Shaded-pole motors are inexpensive and

very inefficient. Capacitor start motors

cost two or more times as much and

provide higher efficiencies. Energy

savings cannot pay for the higher first

cost.

Market Power Nortek owns Broan and NuTone, which

have a 90% share of the market.

Market Barriers

Three barriers challenge the entry of

residential ventilation fans into the realm

of labeled products: cost, Nortek’s

market power, and low demand for

energy-efficient fans. See Table 10.

CostJudging by the street prices of shaded-

pole motors and split capacitor (or

capacitor start) motors in Table 11, a

more efficient ventilating fan is much

more expensive to manufacture. At

current market prices, no good payback can be shown to the consumer.

Some manufacturers make their own motors while others must buy from suppliers. Manufacturers

relying on suppliers would have to negotiate large contracts for higher efficiency motors to keep the cost

down.

Table 11. Price Range for Shaded-pole and Split

Capacitor Fans

Manufacturer Shaded- Split

pole Capacitor

Nortek-Broan $30-$100 $150-$400

Nortek-NuTone $30-$100 $150-$400

Panasonic NA $150-$300

American Aldes $180 $190-$400

Patton $40-$100 $200-$700

Fantech $170 $180-$250

Source: The Cadmus Group, Inc. from interviews with industry

representatives. Note: Prices can vary by ± 25%.


Table 12.

Market Potential for Split Capacitor

Motors

Trend Split Capacitor

Motor

Increased use of continuous

ventilation

excellent

Growth in new housing

market

some potential growth

Change in IAQ requirement excellent


Market PowerNortek-Broan and Nortek-NuTone control 90 percent of the residential ventilation fan market, and their

reaction to an ENERGY STAR Label will have strong ramifications. Their participation could ensure the

success of the label. They may, however, choose not to participate because of their dominance in the

marketplace. A new energy-efficient feature on their product will not necessarily increase their market

share. One can make the case that Nortek’s non participation may make it more difficult to get others to

participate; on the other hand, it might give the perfect market differentiation to a competitor. Because

the manufacturer’s first concern is production cost, higher costs may discourage market differentiation.

Low Demand There is little demand for energy-efficient ventilation fans or ventilating systems. Individuals, contractors,

and builders will have to be convinced of the benefits of the improved technology before they demand this

type of product from manufacturers.

Market Potential

The market would also be more likely to purchase energy-efficient ventilating fans (ones using split

capacitor motors) if there were an increase in the use of continuous ventilation (see Table 12). As

mentioned previously, some states are already mandating this. Moreover, any major increase in new

housing starts would be a great opportunity for sales of products that are more energy efficient. Federal,

state, or local changes to the current indoor air quality guidelines would promote more efficient fans, too.

Currently, manufacturers sell about 7 million

ventilating fans per year. For the 1.8 million new

homes being built, each builder includes an average

of two and one-half fans per house, which makes

the new fan market about 5 million. The remaining

2 million units sold are for retrofits. With an

ENERGY STAR product labeling sales penetration of

10 percent, the estimated potential for ENERGY

STAR sales of ventilating fans in the year 2000

would be about 720,000 units. See Table 13.

Manufacturers with small market share are eager to

have an energy label on their products as a way to better compete with the dominant player, Nortek. The


ones already making specialized fans (including higher efficiency fans) are likely to participate in an

ENERGY STAR Labeling Program.

Preliminary Conclusions & Recommendations

Residential ventilation fans have low system efficiencies. Manufacturers and consumers accept these

low efficiencies because the fans have low initial costs and low operational costs. Users typically operate

ventilation fans for one hour a day or less. The savings estimate for inducing 5 percent of the existing fan

market to use a fan with an achievable efficiency of 5 cfm/W would be 32 million kWh/year in 2001,

growing to 110 million kWh/yr in 2010. The pollution prevention potential of this action is the avoidance of

63 million lbs. of CO emissions per year in 2001, growing to 219 million lbs in 2010.2

From the perspective of potential pollution abatement, residential ventilation fans offer limited potential.

Products with efficiencies of five times the average of 1 cfm/W are currently available, but at a higher

price. At today’s street prices, the more efficient product can cost up to five times more; therefore, there

is no good rate of return on this investment. The only real market driver for an ENERGY STAR label would

be the manufacturers who are already making an efficient product.


Appendix A

Contact Information

A.1 Manufacturing and Import Industry Contact Information

Manufacturer Name Contact Person & Title Phone Internet Web Site

Broan David Wolbrink, VP 414-673-8606 www.broan.com

Panasonic Victor Flynn, Sales Manager 201-271-3287 www.panasonic/commercial_buildin

g/home_building

Fantech Ola Wettengren, President 800-747-1762 www.fantech-us.com

American Aldes Dennis Dietz, VP Engineering 941-351-3441 www.americanaldes.com


A.2 Distribution Contact Information

Distribution Network Contact Person & Title Phone

Energy Federation John O’Connell, Dept. Head 508-870-2277

Shelter Supply Mark LaLiberte, President/Owner 612-898-9103


A.3 Trade Associations Contact Information

Trade Association Contact Person & Title Address and Phone Web Site

Home Ventilating Institute Dale Ramien, Director of 30 West University Drive www.amca.org

HVI (Division of AMCA) Arlington Heights, IL 60004-1893

847-394-0150

Air Movement and Control Peter Handley, Executive 30 West University Drive www.amca.org

Association International VP Arlington Heights, IL 60004-1893

847-394-0150


June 29, 1999 DRAFT- DO NOT CITE The Cadmus Group, Inc.

Table A.4. Calendar of Associations and Trade Shows Representing Target Products

JULY

PRODUCT CONFERENCE / TRADE SHOW DATE LOCATION CONTACT WEB SITE

Ventilation Fans, Industrial Designers Society of July 14-17, 1999 Chicago, IL Stan Butler www.ift.org

Reach-In America [email protected], Set

Top Boxes

ALL Energy International Energy Products August 18-20, 1999 Denver, CO TBDProducts Evaluation Conference

SEPTEMBER

Ventilation Fans, Air Conditioning Heating and Sept. 8-10, 1999 Monterrey, Mexico TBD ahrexpo.com

Reach-In Ventilation Expo (AHR)Refrigerators

Reach-In National Automatic Merchandising October 28-30, 1999 Washington, DC TBD www.nama.org

Refrigerators, Association ExpoIceMakers, Water

Coolers,Ventilation Fans

NOVEMBER

ALL Energy National Electrical Manufacturers November TBD TBD TBD www.nema.org

Products Assoc. (NEMA)

Ventilation Fans, Energy Efficient Building Assoc. Nov. 4-7, 1999 Baltimore, MD TBD www.eeba.orgWater Coolers,

IceMakers, Reach-In Refrigerators,

Set Top Boxes

Ventilation Fans, National Assoc. of Public Hospitals Nov. 11-13, 1999 Washington, DC TBD www.naph.orgIceMakers, Water and Health Services Conference

Coolers, VendingMachines, Reach-

In Refrigerators


PRODUCT CONFERENCE / TRADE SHOW DATE LOCATION CONTACT WEB SITE

DECEMBER

Ventilation Fans Air Movement & Control Assoc. Dec. 5-7, 1999 Arlington Heights, IL TBD www.amca.org

(Technical Seminar)

Ventilation Fans, National Association of Home January 14-17, 2000 Dallas, TX TBD www.nahb.orgIceMakers, Reach- Builders

In Refrigerators,Set Top Boxes

YEAR 2000

Ventilation Fans, American Society of Heating, Winter Meeting Dallas, TX TBD www.ashrae.org

Reach-In Refrigeration and Air-Conditioning February 5-9, 2000Refrigerators, Engineers (ASHRAE)

IceMakers, WaterCoolers

Refrigeration AHR Expo February 5-7, 2000 Dallas, TX TBD www.ahrexpo.org

Equipment

IceMakers, Supermarket Industry Convention May 7-9, 2000 Chicago, IL TBD www.fmi.orgVending

Machines, Reach-In Refrigerators,

Ventilation Fans


Glossary

ASHRAE: American Society of Heating, Refrigerating, and Air-conditioning Engineers

W: watt

Wg: inches of Water Gauge: This measurement is used for low pressure flow measurements of gases. A Pitot-

static tube is connected to a manometer. The manometer (typically used for air flow) is a U-tube with some

water in it. The water rests at the bottom of the tube. One end of the manometer is open to the ambient

air. The other end is connected to the Pitot-static tube. The Pitot-static tube is located in the airstream to

be measured. The Pitot-static tube has a small hole in it. This hole faces the air stream for total pressure

measurements and is 90 degrees to the airflow for static pressure measurements. As the flow of air

impinges on the Pitot-static tube, the force is transmitted through the device to the column of water. The

water column is deflected. The deflection is measured in inches of water. Most low pressure air systems

will have measurements of less than 1"of deflection. If measuring the performance of a fan, the measured

deflection may then be read on the fan's performance curve to check the flow. A typical performance

curve shows the fan's static pressure against the flow. The performance curves are generated by the

manufacturer. Frequently, the performance is confirmed by a third party (certification, such as HVI). The

Pitot-static tube, in conjunction with the manometer or differential pressure transducer, provides a simple

method determining air velocity at a point in a flow field. The arrangement measures either the static

pressure or total pressure of the flow field. The static pressure is a measure of pressure relative to the

ambient condition. The total pressure is the addition of the velocity pressure and static pressure of the flow

field. Resistance of a duct or housing connected to a fan used for air can be expressed in inches of water

gage. Many low pressure, HVAC fan's flows are rated at a static pressure. This makes them easier to

compare the relative performance.

CO2: Carbon Dioxide


Bibliography

Air Movement and Control Association International, Inc. [online] www.amca.org

American Aldes Ventilation Corporation. [online] www.americanaldes.com

ASHREA Handbook. 1996. HVAC Systems and Equipment. Chapter 18.

ASHREA Journal. May 1999. Indoor Air Quality for Residential Buildings. Max Sherman.

ASME. Proceedings of the Renewable and Advanced Energy Systems for the 21 Century. April 11-15,st

1999. The CMU Air-Core Passive Hybrid Heat Storages System. Bion D. Howard, Building

Environmental Science and Technology.

Broan. [online] www.broan.com

Ernest Orlando Lawrence Berkeley National Laboratory. December 1998. Recommended Ventilation

Strategies for Energy-Efficient Production Homes. LBNL-40378. Judy A. Roberson, Richard E.

Brown, Jonathan G. Koomey, and Steve E. Greenberg. Environmental Energy Technologies Division.

[online] www.enduse.lbl.gov/projects/esventilation

Ernest Orlando Lawrence Berkeley National Laboratory. Residential Ventilation and Energy

Characteristics. Max Sherman, Nance Matson, Energy Performance of buildings Group, Energy and

Environmental Division.

ESOURCE Technology Atlas Series. 1996. Drivepower. Volume IV.

Fantech. [online] www.fantech-us.com

Home Builders Institute. [online] www.hbi.org

Home Energy. January/February 1999. Volume 16, Number 1. Oversized Kitchen Fans - An

Exhausting Problem. Bruce Manclark [online] www.homeenergy.org

Home Energy. March/April 1996. Ventilation Fans: the New Energy Hogs? Alan Meier. [online]

www.homeenergy.org


Home Ventilation Institute Division of AMCA. June 1998. Certified Home Ventilating Products

Directory. HVI 911.

Home Ventilation Institute Division of AMCA. Revised 4/95. Product Certification Procedure. HVI

920.

James Dulley’s Nationally-Syndicated Newspaper Columns and Update Bulletins. 1998. Manufacturers

of Standard Ceiling Mount and In-line Bathroom Vent Fans. [online] www.dulley.com

McGraw-Hill. Series in Mechanical Engineering, Second Edition. Refrigeration and Air Conditioning.

Stoecker and Jones

NMB. [online] www.nmbtech.com

National Association of Home Builders. [online] www.nahb.org

Panasonic. [online] www.panasonic.com/commercial_building/home_building/

Stevens and Associates. December 1998. Ventilation Energy in Energy Star Homes. Don Stevens,®

Stevens and Associates.

Max H. Sherman. February 9, 1992. Superposition in Infiltration Modeling.

Web Supply. [online] www.websupply.com


Section 1

The following articles were found in publications relevant to the industry. The articles appear in the order

listed below.

1-1 Indoor Air Quality for Residential Buildings.

1-2 Oversized Kitchen Fans - An Exhausting Problem.

1-3 Recommended Ventilation Strategies for Energy-Efficient Production Homes...[also available

online].

1-4 Residential Ventilation and Energy Characteristics.

1-5 Superposition in Infiltration Modeling.

1-6 Ventilation Fans: the New Energy Hogs?

1-7 Ventilation Energy in Energy Star Homes.®

Section 2

The following section contains materials that were written/distributed by companies or company web sites

within the industry. The materials appear in the order listed below.

2-1 Air Movement and Control Association International, Inc...[online].

2-2 American Aldes Ventilation Corporation...[online].

2-3 Broan...[online].

2-4 Certified Home Ventilating Products Directory.

2-5 Home Energy...[online].

2-6 Manufacturers of Standard Ceiling Mount and In-Line Bathroom Vent Fans. James

Dulley...[online].

2-7 Fantech...[online].

2-8 Home Builders Institute...[online].

2-9 Nippon Minuature Bearings (NMB)...[online].

2-10 National Association of Home Builders...[online].

2-11 Panasonic...[online].

2-12 Product Certification Procedure.

2-13 Web Supply...[online].

ventilation fan-marketing paper

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