Product type: Heating & Cooling
Supplier type: Drop Shipper, Manufacturer
Market served: Africa
Trade show: NA

ECONO-HEAT has well adopted the High Volume, Low Margin philosophy as part of its core business strategies. ECONO-HEAT’s state-of-the-art semi-automated factory has dramatically increased our production capacity from 300,000 units annually to 1.2 million units on a single shift (2 million units on double shift).

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ECONO-HEAT Energy Efficient Appliances (Pty) Ltd, South African inventor and manufacturer of the popular ECONO-HEAT wall panel heater, on Friday 28 September 2012 won first place in all three categories – Innovation, Job Creation and Sustainability – of the South African Industrial Development Corporation (IDC) Business Partners competition.

The aim of the competition was to recognize IDC customers as business partners and to celebrate with them their contribution to creating jobs, developing innovative products and managing environmentally sustainable businesses in South Africa. It, furthermore, served as a platform to highlight the delivery and impact of the IDC’s investment in and contribution towards growing and supporting the South African industry.

In his acceptance speech, managing director Pieter Bräsler said that the company was humbled, yet proud at the same time to be winning the competition in all three categories. He paid tribute to the IDC in recognizing South African companies and their efforts in growing, being innovative, creating jobs and creating sustainable businesses.

He further referred to the importance of South African companies taking on the challenge of becoming recognised players in international markets, despite the prevailing recessionary conditions in key export markets. He stressed the importance of proper and on-going marketing and support of a product to create brand awareness and customer loyalty. He furthermore pointed out the value of volume manufacturing in terms of economies of scale, which dramatically lowers unitised labour costs. “South African manufacturers need not stand back one inch from competing with its Asian counterparts – even in consumer products,” Bräsler said, and added that partnering with the correct logistics, financial and other business associates to support a company’s export drive is another essential element in the success formula to compete in world markets.

ECONO-HEAT’s celebration of winning the competition coincides with its recent move to a new factory with a greatly expanded production capacity. At the same time the company also established its own international offices to sell directly to retailers in 12 of its 38 export markets and launched an exciting new energy-efficient heating product – a unique low voltage electric blanket.

In preparation for this accelerated export growth, ECONO-HEAT has, furthermore, established the necessary structures, systems and support (one being securing financial support from the IDC) to further optimise its manufacturing, administrative and financial processes in support of even higher levels of operational efficiency and discipline in the company. Furthermore, adhering to the Principles and Practises of Lean Manufacturing is key to the success of the company’s operation.

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