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.

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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Engineered Compressed Air Products = Less Noise & Money Saved

Everyone dislikes loud noises for the most part. Here in Ohio we just got done surviving the constant buzz and swarming of cicadas. We all deal with noise on a daily basis, some of it enjoyable and some of it not so much. Noise is an inescapable fact of life and all we can do is try to reduce noise level to save our sanity. But, did you know that cutting down on the noise produced by compressed air blow offs can actually save you money? Your loud homemade blow off system is not only way too loud, but it is most likely also costing you more money than you need to spend.

EXAIR’s engineered compressed air products are designed to operate quietly and efficiently. The reduction in noise they produce is only one of the benefits – another is the reduction in money by reducing compressed air use.

But how does one calculate out the ROI? It is very simple to calculate out your potential savings of using one of EXAIR’s Intelligent Engineered Compressed Air Products. If you would rather not do the calculations out yourself then we can do it for you by sending the item in question to our Efficiency Lab Testing. The Efficiency Lab Testing is a free service that we offer to show you the possible savings by switching to one of our products.

The following is a typical ROI preformed and replaced with a corresponding EXAIR Super Air Nozzle:

• ¼” drilled pipe with (3) 3/32” Holes which uses 9.4 SCFM per hole at 80 psig (denoted as DP)
• A Model 110003 3” Super Air Knife can be used to replace and only uses 8.7 SCFM at 80 psig (denoted below as SAK)

Calculation:

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

(28.2) * (60) * (8) * (5) * (52) = 3,519,360 SCF

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

(8.7) * (60) * (8) * (5) * (52) = 1,085,760 SCF

Air Savings:

SCF used per year for DP – SCF used per year for SAK = SCF Savings

3,519,360 SCF – 1,085,760 SCF = 2,433,600 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 cost you would save. If not, you can us \$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

(2,433,600 SCF) * (\$0.25 */ 1000 SCF) = \$608.40 annual Savings

With the simple investment of \$216 (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

(\$608.40/year) / (5 days/week * 52 weeks/year) = \$2.34 per day

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

(\$216) / (\$2.34/day) = 92.3 days

As you can see it doesn’t take long for the air knife to pay for itself. You also get better overall performance as the Super Air Knife will provide a solid curtain of air. In the end you get to breathe a sigh of relief as no more jump scares and a loud hiss when you turn your air on. Who doesn’t like to save a little money and sanity, especially in these crazy times?

If you have any questions or want more information on EXAIR’s Air Knifes or like products. Give us a call, we have a team of application engineers ready to answer your questions and recommend a solution for your applications.

Cody Biehle
Application Engineer
EXAIR Corporation
Visit us on the Web

The Impressive ROI of an Engineered Air Nozzle

You may have asked…why should I switch over to an engineered air nozzle if my system already works? Or…How can air nozzles 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.

But how is ROI calculated? It is very simple to calculate out your potential savings of using one of EXAIR’s Intelligent Engineered Compressed Air Products. If you would rather not do the calculations out yourself then we can do it for you by sending the item in question to our Efficiency Lab Testing. The Efficiency Lab Testing is a free service that we offer to show you the possible savings by switching to one of our products.

The following is a simple ROI  calculation for replacing open blowoffs 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 cost you would save. If not, you can us \$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.

Cody Biehle
Application Engineer
EXAIR Corporation
Visit us on the Web

EXAIR’s Return on Investment For One Engineered Air Nozzle is Amazing!

Return on Investment (ROI) is a measure of the gain (preferably) or loss generated relative to the amount of money that was invested.  ROI is typically expressed as a percentage and is generally used for financial decisions, examining the profitability of a company, or comparing different investments.  It can also be used to evaluate a project or process improvement to decide whether spending money on a project makes sense.  The formula is shown below-

• A negative ROI says the project would result in an overall loss of money
• An ROI at zero is neither a loss or gain scenario
• A positive ROI is a beneficial result, and the larger the value the greater the gain

Example – installing a Super Air Nozzles (14 SCFM compressed air consumption) in place of 1/4″ open pipe (33 SCFM of air consumption consumption) .  Using the Cost Savings Calculator on the EXAIR website, model 1100 nozzle will save \$1,710 in energy costs. The model 1100 nozzle costs \$42, assuming a \$5 compression fitting and \$45 in labor to install, the result is a Cost of Investment of \$92.00. The ROI calculation for Year one is-

ROI = 1,759% – a very large and positive value.  Payback time is only 13 working days!

If you have questions regarding ROI and need help in determining the gain and cost from invest values for a project that includes an EXAIR Intelligent Compressed Air® Product, feel free to contact EXAIR and myself or one of our Application Engineers can help you determine the best solution.

Jordan Shouse
Application Engineer

Send me an email
Find us on the Web