How to Calculate ROI (Return on Investment)

You may have asked…why should I switch over to an engineered compressed air product if my system already works? Or…How can your products be much different?

Manufacturing has always been an advocate for cost savings, where they even have job positions solely focused on cost savings. Return on Investment (ROI) is a metric they look toward to help make good decisions for cost savings.  The term is used to determine the financial benefits associated with the use of more efficient products or processes compared to what you are currently using. This is like looking at your homes heating costs and then changing out to energy efficient windows and better insulation. The upfront cost might be high but the amount of money you will save over time is worth it.

ROI Calculation

How is ROI calculated? It is very simple to calculate out the potential savings of using an EXAIR Intelligent Compressed Air® Product. We have easy to use calculators on our websites Resources where filling in a few blanks will result in an ROI when switching to a EXAIR product! Here they Are, Calculators.

I’ll go ahead and break down the simple ROI calculations for replacing open blow offs with an EXAIR Super Air Nozzle:

  • ¼” Copper Pipe consumes 33 SCFM at 80 psig (denoted below as CP)
  • A Model 1100 ¼” Super Air Nozzle can be used to replace and only uses 14 SCFM at 80 psig (denoted below as EP)

Calculation:

(CP air consumption) * (60 min/hr) * (8 hr/day) * (5 days/week) * (52 weeks/year) = SCF used per year for Copper Pipe  

(33) * (60) * (8) * (5) * (52) = 4,118,400 SCF

(EP air consumption) * (60 min/hr) * (8 hr/day) * (5 days/week) * (52 weeks/year) = SCF used per year for EXAIR Product  

               (14) * (60) * (8) * (5) * (52) = 1,747,200 SCF

Air Savings:

SCF used per year for Copper Pipe – SCF used per year for EXAIR Product = SCF Savings

               4,118,400 SCF – 1,747,200 SCF = 2,371,200 SCF in savings

If you know the facilities cost to generate 1,000 SCF of compressed air you can calculate out how much this will save. If not, you can use $0.25 to generate 1,000 SCF which is the value used by the U.S. Department of Energy to estimate costs.

Yearly Savings:

                (SCF Saved) * (Cost / 1000 SCF) = Yearly Savings

                                (2,371,200 SCF) * ($0.25 / 1000 SCF) = $592.80 annual Savings

With the simple investment of $42 (as of date published) you can calculate out the time it will take to pay off the unit.

Time Until payoff:

                (Yearly Savings) / (5 days/week * 52 weeks/year) = Daily Savings

                                ($592.80/year) / (5 days/week * 52 weeks/year) = $2.28 per day

                (Cost of EXAIR Unit) / (Daily Savings) = Days until product has been paid off

                                ($42) / ($2.28/day) = 17.9 days  

As you can see it doesn’t have to take long for the nozzle to pay for itself, and then continue to contribute toward your bottom line. 

If you have any questions about compressed air systems or want more information on any of EXAIR’s products, give us a call, we have a team of Application Engineers ready to answer your questions and recommend a solution for your applications.

Jordan Shouse
Application Engineer

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Hand Holding money Image from Pictures of Money Creative Commons license

Video Blog: How-to Install EXAIR’s Hot Tap Digital Flowmeters

The Hot Tap Digital Flowmeters can be installed on pressurized compressed air systems and pipes. This avoids the downtime necessary to depressurize the compressed air system and keeps your processes up and running.

Watch the video below to learn how simple it is to install EXAIR’s Hot Tap Digital Flowmeters.

Jordan Shouse
Application Engineer

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Twitter: @EXAIR_JS

Flat Super Air Nozzle vs. Open Pipe ROI

The EXAIR Flat Super Air Nozzles are manufactured to blow a wide forceful stream of air.  Their patented design creates a high velocity, laminar air stream with minimal air consumption and low noise.  They come in two widths; 1” (25mm) and 2” (51mm).  EXAIR offers a standard Flat Super Air Nozzle and a High Force Flat Super Air Nozzle in two different materials, zinc-aluminum alloy and 316 stainless steel.  And with a metal construction, breakage is not a concern and performance are not sacrificed even in the harshest of environments. 

The unique patented shims inside the EXAIR Flat Super Air Nozzles will give you three improvements to the design and function.  First, they come in different thickness to create a wide range of forces.  In conjunction with a regulator, you can “dial” in the correct amount of force from a breeze to a blast without overusing your air compressor.  The patented design also allows an even flow across the entire width of the air nozzle.  Lastly, they help to entrain the free ambient air; so that less compressed air is required.  The high efficiency design will save you money.  The EXAIR Flat Super Air Nozzles are effective in uniform blowing with safety and efficiency in mind.

2″ Flat Super Air Nozzle

To expand more on force adjustments with the Flat Super Air Nozzles, EXAIR has an easy way to change the shim to better suit your application.  You can increase or decrease the force of the nozzle by just removing two screws and changing the thickness of the shim inside.  EXAIR offers a variety pack called a Shim Set to give you a wide range of forces with the nozzles.  For the standard Flat Super Air Nozzle, they come stock with a 0.015” (0.38mm) shim for both the 1” and 2” sizes.  The corresponding Shim Sets will include a 0.005” (0.13mm), 0.010” (0.25mm), and 0.020” (0.51mm) shim.  The High Force Flat Super Air Nozzles will come standard with a 0.025” (0.64mm) shim; and the Shim Set will include a 0.020” (0.51mm) and 0.030” (0.76mm) thick shim.  This is a unique feature as most competitive flat nozzles do not allow you to do this.  The chart below corresponds the appropriate Shim Set to the Flat Super Air Nozzle.

Not only are they safe, and easily adjustable they can help save compressed air vs using a open ended pipe!

For example, let’s look at the average operating costs for a single 1/4″ open copper tube. (If you don’t know you current energy costs, a reasonable average to use is $ 0.25 per every 1,000 SCF used, based on $ 0.08/kWh.

1/4″ Copper tube

A single 1/4″ open copper tube consumes 33 SCFM @ 80 PSIG and costs roughly $ 0.50 per hour to operate. (33 SCF x 60 minutes x $ 0.25 / 1,000 = $ 0.50). For an 8 hour shift, the total cost would be $ 4.00 ($ 0.50 x 8 hours = $ 4.00).

If we were to replace the 1/4″ open copper tube with our Model # 1122 2″ Flat Super Air Nozzle with 1/4″ FNPT inlet, the air consumption would be reduced to 21.8 SCFM @ 80 PSIG. This may not seem like much of an air usage reduction, but when you look at the monetary, total cost of ownership for purchasing and operating the nozzle, the savings can quickly add up.

The operating cost for a 2″ Flat Super Air Nozzle with 1/4″ FNPT inlet is $ 0.33 per hour (21.8 SCF x 60 minutes x $ 0.25 / 1,000 = $ .033) or $ 2.64 per 8 hour shift ($ 0.33 x 8 hours = $ 2.64).

We can now compare the operational cost between the 2 devices:

1/4″ open copper tube operating costs:
$ 0.50 per hour
$ 4.00 per day (8 hours)

2″ Flat Super Air Nozzle operating costs:
$ 0.33 per hour
$ 2.64 per day (8 hours)

Cost Savings:
$ 4.00 / day (open copper tube) –  $ 2.64 / day (2″ Flat Super Air Nozzle) = $ 1.36 savings per day

The Model # 1122 2″ Flat Super Air Nozzle has a list price $ 67.00 USD.

ROI or Return On Investment calculation:
$ 67.00 (Cost) / $ 1.36 (savings per day) = 49.26 days.

The 2″ Flat Super Air Nozzle would pay for itself in just over 49 days in operation. This is the savings for replacing just ONE 1/4″ open copper tube with an engineered solution! In most industrial plants, there could be several of these which presents even more opportunities to reduce the overall operational costs.

Our focus here at EXAIR is to improve the overall efficiency of industrial compressed air operating processes and point of use compressed air operated products. If you are looking to reduce compressed air usage in your facility, contact an application engineer and let us help you optimize your current system.

Jordan Shouse
Application Engineer

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EXAIR Digital Flow Meters

A topic that we’ve talked about here on the EXAIR blog discusses the costs of compressed air and how to use it more efficiently. How can you determine the costs of your compressed air? The first step you’ll need to take is to put a number to how much compressed air you are currently using. In order to do that you’ll need a measurement tool such as the EXAIR Digital Flowmeter.

EXAIR Digital Flow Meters

The Digital Flowmeter is available from stock for use on Schedule 40 pipe with sizes ranging from ½”-4” I.D. Sizes up to 8” for Schedule 40 and ¾”-4” for copper pipe are also available. Metric sizes are also available for 25mm, 40mm, 50mm, 63mm, 76mm, and 101mm. With a digital readout display, it’s easy to accurately monitor your compressed air usage throughout the facility. Creating a baseline of your usage will allow you to understand your compressed air demand, identify costly leaks, and replace inefficient air products.

The Digital Flowmeter installs in minutes with help from a drill guide and locating fixture to assist in mounting the Digital Flowmeter to the pipe. Two flow sensing probes are inserted into the drilled holes in the pipe. The meter then seals to the pipe once tightened. There is no need to cut, weld, or do any calibration once it is installed. With blocking rings also available, installation can be permanent or temporary. Below is a easy to follow video on how to install EXAIR’s Digital Flow Meter!

The newest addition to this product line is the Digital Flowmeter with wireless capability. Using a ZigBee® mesh network protocol, data is transmitted to an Ethernet connected gateway. This allows you to mount the Digital Flowmeter in areas that you may not be able to easily access and wirelessly monitor and graph the usage with the EXAIR Logger software. Take a peek at this video blog for a demonstration of the use of a wireless Digital Flowmeter software to compare an open pipe to an engineered Air Nozzle.

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Wireless output gives you the freedom to track air usage data from any computer!

In addition to communicating wirelessly with the gateway, the Digital Flowmeters can “piggyback” off of each other to extend their range. Each meter has a range of 100’. Using multiple Digital Flowmeters within the same ZigBee® mesh network, data can be passed from meter to meter to extend the distance over which the meters can operate. These can be installed on each major leg of your compressed air system to continuously monitor usage throughout the facility.

If you’d rather go with a hard-wired data collection method, the Digital Flowmeter is also available with a USB Data Logger. Simply remove the Data Logger from the Digital Flowmeter and connect it to the USB port of your computer. The data can then be viewed directly in the accompanying software or exported into Microsoft Excel.

dataloggerPRce_559wide
Add a Data Logger for easy Value Tracking

Two special flow meter options we now offer are the Pressure Sensing Digital Flowmeters, and the Hot Tap Digital Flowmeters!

Pressure Sensing Digital Flowmeters help by generating a pressure and consumption profile of a system can help to pinpoint energy wasters such as timer-based drains that are dumping every hour versus level based drains that only open when needed. Hot Tap Digital Flowmeters offer a way to install a flow meter on a pipe that is currently under pressure. It uses a series of valves and mufflers to maintain a safe working environment for the installer.

If you’d like to get a clear view of your compressed air usage, give us a call. An Application Engineer will be happy to work with you and get the proper Digital Flowmeters installed in your facility!

Jordan Shouse
Application Engineer

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Twitter: @EXAIR_JS