Challenges
Spun out of Mass HVAC in 2019, Q-PAC makes custom Plug-and-Play fan systems for
commercial HVAC systems for air handling retrofits and OEMs. Its success stems from
having a disruptive product that it delivers and installs quickly. Each fan array is custom-built
according to customer specifications, with simple installations and a variety of features for
optimizing facilities.
The company sells its fan systems to office buildings, universities, airports, hospitals, and
entertainment venues like stadiums and arenas. Because each venue has different requirements,
Q-PAC internally designed its ordering software, QUIPS, which automates the selection and
design process according to a customer’s facility operation and space requirements.
The company operated within Mass HVAC for eight years before being spun out in 2019,
says Kevin Van Dyke, Chief Financial Officer.
“We were incubated inside a company that built air handlers, and we were the fan component,”
he says. “We have a very innovative idea of using EC fans and assembling them in a kitoriented way for new air handlers and retrofit opportunities, allowing us to repair and replace
fans in the field.”
Each fan array ships as a kit with every component needed to install, assemble, and begin
operating in the shortest amount of time. With its patent-pending Quick Connect Box and its wiring
system, electricians have cut 75 percent of the time needed to install a unit. With its optional
BACnet compatible controller, a system can stand alone without any field-installed controls.
Q-PAC operates on the premise that “Fan systems should be easy; we are easier.”
“When it comes to the HVAC component we provide, we are probably the fastest in the
industry when it comes to installation,” says Luis Burgos, Director of Operations. “We provide
a simple service: our products are easy to select, install, and service.”
Customers seem to like Q-PAC’s easy-to-install fans. “We are averaging around 30% growth,”
says Van Dyke. “Actually, it’s been 40% growth since starting as a standalone company.
We’ll do close to $32 million this year.”
Difficult to Operate on Spreadsheets
When Q-PAC began operating as a separate company, it operated on QuickBooks and Excel
spreadsheets. Managing production and inventory was tedious, cumbersome, not always up-todate, and prone to error. It was anything but straightforward but typical for a fast-growing startup.
“We didn’t really know our costs at all accurately,” explains Burgos. “We didn’t have part numbers,
and most of the visibility on sales orders was via Excel files. Our operations were very task-oriented,
and it was really hard to keep track of the status of orders. We barely even had part numbers.”
Without part numbers, executives lacked insights into inventory and project costs, making it
difficult to quote projects accurately. The rudimentary and disconnected applications made it
difficult and time-consuming to process engineering changes, and assemble bill of materials.
Forecasting was difficult.
“We would ship something, and at the end of the year, we could look at the macro view,” says
Kurt Thomas, Director of Marketing. “But we had no idea what our individual job gross margins
were. With QuickBooks, we couldn’t dive that deep, and we couldn’t link all of our inventory.
Plus, we were using so many different systems and many different Excel sheets, so linking all
those just didn’t make sense.”
Part of the difficulty in accessing product profitability stemmed from the custom nature of its
fans, and the different configurations that customers needed. To make it easier for customers
to order, Q-PAC created custom software called QUIPS to automate the fan system selection
and design process according to the variables provided by the client. The possibilities included
choosing from more than 4,000 parts.
The company’s fast growth, frustration with manual work, and disconnected systems prompted
them to look for better systems to run the company. “We reached the maximum potential
of Excel to run a business.,” Burgos says. “We found very clever ways of using Excel and
macros, but at some point, we just couldn’t use it anymore.”
“The volume of orders was getting really high and we weren’t being that efficient.” Adds Nick
Tulip, Director of Technology, “The more orders we had, the more demand increased for either
hiring people or we had issues with scheduling the work.”