Research & Development

For gas heaters, this is not a problem, as it encourages lower runtime and longer unit life. To control system cost, HPWH systems are designed to run longer and provide better matching of heating capacity with storage.

A. O. Smith is developing a new HPWH sizing tool that utilizes new methodologies to specifically optimize the best combination of HPWH capacity and storage volume to provide the customer with the best solution for their needs: never running out of hot water, while achieving the lowest cost and lowest emissions.

The foundation of our commitment to innovative, customercentric and efficient products begins with our 750+ person global engineering team, operating in nine engineering centers around the world. Among other things, this team dedicates their time to new product development, testing and simulation activity in the fields of electronics, sensor technology, combustion systems, coatings, water purification, robotics, machine design, lean manufacturing and process automation.

As a continuing commitment to this team, our company, our customers and our shareholders, we have made two significant investments that will allow us to continue to be an innovation leader.

In late 2018, we opened our new state-of-the-art Lloyd R. Smith Corporate Technology Center (CTC), adjacent to our World Headquarters in Milwaukee. The CTC is a 42,700-square-foot research and technology facility, focused on advanced research and development in the areas of potable and hydronic water heating and water treatment.

Complementing the CTC is our water treatment engineering and manufacturing facility in Lishui, China. This facility not only features state-of-the-art equipment and processes but also is the most advanced residential point-of-use water treatment manufacturing facility in the world. It houses a 30,000-square-foot research and development facility with world-class laboratories that are certified by CNAS (China National Accreditation Service for Conformity Assessment), are co-laboratories of Jiangsu Provincial Center for Disease Control and Prevention and are in the process of being approved by NSF International. These certifications will allow us to continue our technology and innovation leadership and, ultimately, bring new water treatment products to market more rapidly worldwide.

R&D SPEND ($M)

67.9 73.7 80.1 86.4 94.0

87.9

2014 2015 2016 2017 2018 2019

Lloyd R. Smith Corporate Technology Center

is a 42,700-square-foot facility, focused on advanced research and development in the areas of potable and hydronic water heating and water treatment.