New Research Center Offers Product Growth for A. O. Smith and Lochinvar

By Andy Morrissey

The $30 million project will house environmental chambers, a product engineering development lab, an electronics lab and other new spaces for collaboration and technological advancements.

The cement and steel structure next to Lochinvar’s headquarters near Nashville, Tennessee, features large glass windows and strategically placed walls to flood the building with natural light.

When the A. O. Smith Product Development Center opens in the spring, the building will be emblematic of the future A. O. Smith envisions with new technologies and products being developed to position the company as a global leader in advanced water heating and treatment systems.

The $30 million project will house environmental chambers, a product engineering development lab, an electronics lab and other new spaces for collaboration and technological advancements. More than 140 employees — new and existing — will work in the facility.

“This center is designed to enhance knowledge-sharing across the organization and foster new ideas in a space conducive to collaboration. We’re confident this new facility will play a critical role in advancing product innovation and future sustainability efforts,” A. O. Smith Chairman and CEO Kevin Wheeler said earlier this year.

A. O. Smith set up a site visit for Southern PHC magazine to tour the facility and meet with company leaders.

“The research center allows the two brands to develop shared technologies, while also leaving A. O. Smith and Lochinvar as separate brands because they are marketed differently,” said Chief Technology Officer Bob Heideman. “The A. O. Smith brand is primarily water heaters and is driven by wholesalers and retailers for commercial and residential use, while Lochinvar is focused on boilers for residential and commercial applications. Lochinvar also has a commercial water heater business but it’s marketed differently than the A. O. Smith brand.”

Their needs overlap with new technologies and energy efficiency requirements mandated by the federal government to reduce carbon emissions and encourage the push in some regions to switch to electricity as the primary energy source for water heating.

 

Changing Minds Will Matter

One of the biggest challenges for the adoption of new highly efficient electric water heaters is beyond the direct control of all equipment manufacturers: acceptance by customers and contractors. “Contractors often determine what the customer wants. They determine the brand, type, size, height, and so we have to get them on board with the heat pump conversion,” Heideman said. “We need to help them understand that this is good for everybody. It’s good for the homeowner; they’re going to save some money. It’s good for the contractor; he’s got a higher sell price. It’s good for A. O. Smith. It can be a real win.”

 

A. O. Smith Marks 150 Years in Business

The research center is a reflection of A. O. Smith’s history. The Milwaukee-based company marked its 150th anniversary in 2024.

Founded by machinist C.J. Smith, later joined by his sons Charles S., George H. and Arthur O., the company began by supplying components for baby carriages and bicycles. As the company grew, it produced products for the early auto industry, oil and natural gas industries, and even produced glass-lined kegs and brewing tanks alongside water heaters.

A. O. Smith went on to become a global company and became a publicly traded corporation in 1983. In 2011, the company shifted its focus to becoming a global water technology company and acquired other manufacturers and water treatment companies.

The company now employs more than 12,000 people with an annual revenue of nearly $4 billion.

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