Heat pump maker Hallowell downsizes
A Bangor-based heat pump manufacturer whose green technology was once lauded by the state and industry publications is now significantly shrinking its operations in the face of customer complaints.
Hallowell International LLC President Duane Hallowell told the Bangor Daily News the company has cut its full-time staff from 40 to just three and is in the midst of restructuring. The company's high-efficiency heating and cooling system, the Acadia, has been named a top green product by Sustainable Industries and E/The Environmental Magazine, and the company in 2009 received the Maine Governor's Award for Business Excellence. But after experiencing rapid growth in 2008, sales have fallen, which the company in part attributed to its product's initial exclusion from federal stimulus tax credits. Customer complaints over the product have also increased, and one of its biggest customers, a military housing project in New Jersey, has reported that 30% of the 1,370 units installed have failed over the past three years. The company said it is offering support for its products and "will continue to work aggressively" to quickly address the problems.
A representative from military housing contractor Architectural Renovation and Construction said the company invested $5 million in the Hallowell units and has since decided to halt usage of the heat pumps, and is also considering legal action. The paper reported that a number of customers had complained about the product, though Bangor Hydro-Electric Co. reported being satisfied with its pumps.
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