## 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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Hand Holding money Image from Pictures of Money Creative Commons license

## Optimizing Your Compressed Air System: Find and Fix Leaks

There are six steps in optimizing your compressed air system. This entry will focus on Step 2 “Find and Fix leaks in your compressed air system”. Each of the six steps make an impact toward optimizing your compressed air system but finding and repairing your leaks will save you hundreds if not thousands of dollars every year. Major leaks can be felt or heard as you walk around and are somewhat easy to identify. The smaller leaks, which can not be heard or felt, can be found using EXAIR’s Ultrasonic Leak Detector (ULD).

EXAIR Model 9061 will help you find all the smaller leaks that go unnoticed yet add up to become a significant portion of air loss within any air savings program. This Ultrasonic Leak Detector (ULD) is a hand held, high quality instrument that can locate costly leaks in your compressed air system. The person using the ULD need only aim it in the direction of a suspected leak. When a leak is present, an audible tone can be heard with the use of headphones, and the LED display will light. Testing the various unions, pipes, valves and fittings of a complete installation can be done quickly and effectively at distances up 20 feet ( 6.1 m) from a leak.

Compressed air systems that are not maintained can easily waste up to 30% of the compressor output through leaks that go undetected. Compressing air is an expensive operation. Saving the wasted compressed air reduces overall operating costs. Smaller insignificant air leaks may not be a problem but when you add up and repair the multiple smaller leaks it will lead to significant annual savings.

If you have a compressed air system and want to find and repair your leaks EXAIR Model 9061 is a must have for finding all your leaks. If you have questions or need help please contact any one of our Application Engineers for assistance.

Eric Kuhnash
Application Engineer
E-mail: EricKuhnash@EXAIR.com

## Compressed Air Leaks and the Problems They Cause

Over the Fourth of July I had a great opportunity to do some backpacking in the backwoods of the Adirondack Mountains in Upstate New York. “That sounds awesome!” is what most people would think; looking back on it, it was awesome. BUT, at the time it was the very definition of complete and total suffer fest. During my time on the trail, I learned three life lessons. First, always thoroughly study up on every bail out point along the trail. Second, water proofing has its limits; and thirdly, when things leak it is dreadful. After 7 miles of crawling over rocks and traversing lakes and streams in the pouring down rain everything was soaked and water was leaking through our rain jackets, leaving me and my girlfriend cold, wet, and sore as all get out – all on day one.

Leaks don’t just stink when they appear in your rain coat, they are dreadful all around whether it is leaking faucets, a leaky basement or compressed air line leaks. Unlike the fact that I currently have no solution for the leaking rain coat, I do have a solution for your leaking air lines. Leaks are costly and an all-around waste of money that can have severe implications on how the air is being used and the entire system itself.

There are four main affects that a leak in your compressed air system can have and they are as follows; 1) leaks can cause a pressure drop across the system, 2) leaks shorten the life of almost all air supply system equipment, 3) leaks demand increased running time of the compressor, and 4) leaks produce unnecessary compressor capacity by demanding more and more air.

• A pressure drop across your compressed air system can lead to a decreased efficiency of the end use equipment (i.e. an EXAIR Air Knife or Air Nozzle). This adversely effects production as it may take longer to blow off or cool a product or not blow off the product well enough to meet quality standards.
• Leaks can shorten the life of almost all supply system components such as air compressors. This is because the compressor has to continuously run to make up for the air lost from leaks. By forcing the equipment to continuously run or cycle more frequently means that the moving parts in the compressor will wear down faster.
• An increased run time due to leaks can also lead to more maintenance on supply equipment for the same reasons as to why the life of the compressor is shortened. The increase stress on the compressor and supply side components due to unnecessary running of the compressor.
• Leaks can also lead to adding unnecessary compressor size. The wasted air that is being expelled from the leak is an additional demand in your system. If leaks are not fixed it may require a larger compressor to make up for the loss of air in your system.

It is fairly easy to find these leaks, simply use EXAIR’s affordable Ultrasonic Leak Detector. This leak detector uses ultrasonic waves to detect where costly leaks can be found so that they can be patched or fixed. So don’t get stuck in some rainy day with your compressed air leaking everywhere; find those pesky leaks, mark them for maintenance and seal them up.

If you have any questions or want more information on EXAIR’s Ultrasonic Leak Detector 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

## 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