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Peter Gross, president of AEROMIX Systems, sat down with Water Online Radio for this live interview from the show floor at WEFTEC 2011 in Los Angeles. Gross talked about his company's offerings, which includes aeration equipment and complete packaged wastewater plants – from design through operation and support. Listen or read on to learn more.

Water Online Radio: AEROMIX Positioned For Growth In Wastewater Treatment

Todd Schnick: We are back, broadcasting live from the Los Angeles Convention Center and the tradeshow floor at WEFTEC 2011. I am Todd Schnick, joined by my co-host, Todd Youngblood. Todd, we're wrapping hour six.

Todd Youngblood: I say it after every interview … the time is just flying by. The amount of information my poor, tired brain is trying to absorb is just enormous.

Todd Schnick: Well, wait until this one. I think this one is going to be a fun interview. We are joined by the President of AEROMIX Systems, Peter Gross. Welcome to Water Online Radio.

Peter: Hello. Thank you.

Todd Schnick: It's good to have you. Before we get in our conversation, why don't you take a few minutes and tell us a little about you, your background, and the work that AEROMIX is doing?

Peter: Myself, I'm a civil engineer from the University of Minnesota. I worked in the water industry for the last 30 years, starting with a company called Osmonics, which the world knows today as GE Water. I moved from there to start AEROMIX, which is in Minneapolis, MN.

Todd Schnick: You launched AEROMIX? It's your company?

Peter: Yes, it is.

Todd Schnick: How long has it been in business?

Peter: 21 years.

Todd Schnick: Wow, that's great news. Congratulations on that. You're past the startup phase. Do me a favor to help me, and the Water Online audience, better understand what you're actually delivering to your customers.

Peter: Our company designs, builds, manufactures, supports, and operates wastewater treatment plants, complete packaged wastewater treatment plants, and seven different kinds of aeration equipment used in wastewater treatment plants.

Todd Youngblood: Peter, you talked design through operation. You said "operates," which surprised me a little bit. Is that something you did from the beginning?

Peter: No, just recently. We just started doing operation support of our equipment.

Todd Youngblood: Why? What was it that made you think it was a good opportunity?

Peter: It gives us a longer revenue source. It gives us a closer connection to our customer, long-term. It helps to build long-term business.

Todd Schnick: What do you see as some of the emerging trends and issues in the wastewater industry going into 2012?

Peter: Emerging trends – continued challenges of funding and continued issues as far as municipalities and customers finding a way to gather the money necessary to put these projects together.

Todd Schnick: Everybody who has sat in that chair today has talked about funding as an issue. Are there some innovative ways to educate the market about the value of investing, or is that just the reality of the economy we're in and we just have to weather through that. What do you have to say on that?

Peter: Frankly, I think it's a reality of the economy and it's up to companies like ours and other companies to come up with creative solutions to deal with that issue.

Todd Youngblood: Is that part of the operations that I asked you about a little earlier? You're essentially outsourcing all the people and processes and business functions from them to you.

Peter: Exactly. It relieves that expense from the customer that they don't have the money to put toward. We can do it more efficiently and cost effectively than them. It saves them money.

Todd Youngblood: Are you spreading that across multiple different customers? It would seem tough to me. Design and manufacturing is one thing; operation strikes me as just a very different business model.

Peter: It is. It's a very different area for us and we built a whole new team around it and I think it's going to be successful in the long-term for us.

Todd Schnick: You're exhibiting here at WEFTEC. What is your principal objective of attending this show? Is it market education, lead generation? What are your goals here?

Peter: Certainly, just maintaining a position and advancing our position in the market, making people aware that we're still a significant player in the market. It's about reconnecting with those important customers and sales agents that we have, and it's an opportunity for training of the sales people that we have, to make them aware of new products and new advances.

Todd Schnick: Regulation is something that most folks look at as both a blessing and a curse. What's your perspective on that, in terms of the impact it has on your business?

Peter: None. Regulations are constantly changing or always there. We're not going to make or break some business move based on some new regulations. We just have to stay current with the best technology, stay competitive with the best offerings, and keep our price and offer value to our customer.

Todd Schnick: Assuming that you're in a competitive space, what are you doing to differentiate yourself from your competitors? I suspect the operations piece is probably a part of that. Tell us more about that.

Peter: The operations piece and then, also, a financing piece. We're able to finance projects for customers. Where they don't have the money, we can provide the financing long-term to build, operate, and transfer that project long-term.

Todd Youngblood: Peter, people-wise, how big of a challenge is it to recruit and retain people who have the intellectual wherewithal to keep up and operate this kind of project?

Peter: Surprisingly, it's very difficult. You would think that it would be easy in today's job market. It's very difficult to find people who have the right background, a passion, and the ability to meet challenging goals. It's very difficult.

Todd Schnick: Help the Water Online audience better understand your value by sharing a recent specific win that you've achieved on behalf of one of your customers.

Peter: We won a project just recently relating to a U.S. military project in Afghanistan through a variety of engineering organizations who were designing this project, or helping us design the project.

It was a very long, drawn-out effort. It took an incredible team on our part to land this project, and we were successful.

Todd Schnick: I would think it was an incredible team on your part. I believe that with no problem at all. How many other partners were involved in that whole thing? Was collaboration important in that deal? More generally, is collaboration with other companies important?

Peter: There were four other partners involved in that: two consulting firms, an organization and arm of the U.S. military, and a construction company – all intimately involved with stakes in the pot.

Todd Schnick: You were the ringmaster, so to speak?

Peter: Yes, we were the ringmaster.

Todd Schnick: What does the next three to five years look like for you guys?

Peter: Significant growth.

Todd Schnick: Well, that's exciting.

Todd Youngblood: Just so matter-of-factly stated. I love that. You just don't hear that much with new economy. There's not a trace of doom and gloom in that one. Why is that? Just because you're well positioned in the market and have a good track record in the industry?

Peter: We're well financed, we have the operations piece, and we have the financing piece that's missing in the marketplace. We have very good products and equipment. We have good references and we're positioned for significant growth.

Todd Schnick: That's great … kudos to you for that. Peter, I hate to say it but we're about out of time. Before we let you go, share with the audience how they can get in touch with you guys and learn more about your work.

Peter: The best is our website, www.aeromix.com.

Todd Schnick: Sounds good. Peter Gross, president of AEROMIX Systems, it was a pleasure having you. Thanks for joining us today.

Peter: Thank you.