Tag: return on investment

How Fast Can I Get My Return On Investment

Published on by Brian FarnoLeave a comment

Whenever an EXAIR product is sold to another business there is ultimately a question from a customer whether they know it or not. That question is very often, how fast will this product pay itself back in production gains, air savings, or decrease in downtime. One of the ways we offer this information is through our calculators.

The easiest method to determine how fast an EXAIR Engineered Solution will pay itself back is by knowing a few variables and then plugging them into our simplified Air Savings Calculator on the EXAIR site.

Simple ROI Calculator from EXAIR.comhttps://www.exair.com/knowledgebase/calculator-library/air-savings-calculator-usd.html?pub=28.calc

The Variables:
1. Current Customer Consumption (SCFM) or (SLPM) – We need this to have the baseline, it isn’t always easy to know off the top of your head so we offer items like the Digital Flowmeter or even the ability to send the product to us through the Efficiency Lab for a free diagnosis of consumption.

2. $ Cost of EXAIR Product – This is easy, you can even add in other known project costs to this that you want factored in for the return on investment. The more you add, the less it becomes a simplified ROI. Basic cost of the EXAIR product that is being installed is the best to keep it simplified.

3. EXAIR Product Consumption (SCFM) or (SLPM) – This can easily be obtained from our website or our Brain Trust, I mean Application Engineers who are always eager to talk about air consumption and other technical details. To really determine this we just need to know the operating air pressure and the model number.

4. $ Cost of compressed air/1,000 Cubic Feet – This is a value that may be known by the on-site utilities team, if not a good industry standard for the Midwest is $.25 USD. This has come assumptions on your kWh cost of energy and compressor efficiency. Again, if you want to dive deep into this, reach out to our Application Engineers, we are here for a reason.

That’s it, with those values input you can get a break down on how much air, and money you are saving and a simple payback in days of operation.

If you have questions on the math behind this, or how to determine/factor in some more information, contact one of the team members here and we will walk you through the best options to decrease your payback time and increase your efficiency.

Brian Farno
Application Engineer
BrianFarno@EXAIR.com
@EXAIR_BF


How to Calculate ROI (Return on Investment)

Published on by Jordan T ShouseLeave a comment

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

Want to Know How Much Money you can Save? Use EXAIR’s Efficiency Lab

Published on by Brian FarnoLeave a comment

Growing up as a kid of the 80’s I remember wanting a Nintendo 64. This was very much a want due to the excellent advertising and having friends that got them when they first came out. So, like many kids of the times, I set forth to present my case to my parents and sell them on the benefits to me receiving this 64 bit wonder of the world. These benefits all revolved around me doing chores and “helping” to earn money to go towards the end goal. Thinking back now, I really should have started to learn more about negotiating earlier in life because my parents and older brother really made out on the deal. The point is, I had to make sure that they saw a return on their investment. Mainly, I would be entertained and they would get some stuff done around the house without complaints.

1 – NUTS For Nintendo special on ABC news 20/20 from 1988

Well, flash forward to today and I still feel as though it is always an easy justification if I have supporting evidence of the benefits and even better, if there is some form of cost savings that will be had by spending money on a project or a tool. Often times the justification is the amount of time spent on a task. Well, here at EXAIR we completely embrace that justification culture and, in many cases, can provide you the information necessary to present to management or budget committee – the simple ROI your company will see when investing in EXAIR products. The best part is, this study is always free.

The way it works is pretty simple, we want to compare your current solution to our engineered products. EXAIR has a simple form that gets filled out (or you can call, e-mail or chat) explaining your application to us. We ask for a few key pieces of detailed information, and for you to send one of your current solutions (the nozzle, homemade device, or open tube for example). Then we run side by side tests in house to determine air consumption, noise, and force at the same pressure you are using at your facility. That’s right, this testing is all done here at EXAIR through our EXAIR Efficiency Lab. We document these performance characteristics and send a report showing a simple return on investment for you if you replace your device with an EXAIR engineered solution.

EXAIR’s Free Efficiency Lab

This information is then easily backed up by our 30 day guarantee on stock products. Get the EXAIR solution in, test it in your facility and see how the savings stack up. If there is anything that doesn’t stack up, you simply let us know and send the units back.

The entire Efficiency Lab and 30 day guarantee are offered to all of our customers that are within the US and Canada. If you would like to discuss what is possible for you and your team, please reach out to an Application Engineer.

Brian Farno
Application Engineer
BrianFarno@EXAIR.com
@EXAIR_BF

1 – Hertz, Steve – NUTS FOR NINTENDO special on ABC news 20/20 from 1988, 6/24/2010 – Retrieved from https://www.youtube.com/watch?v=yt4KG9ib8S4

EXAIR Super Air Knife Promotion

Engineered Compressed Air Products = Less Noise & Money Saved

Published on by codybiehleLeave a comment

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.

EXAIR Super Air Knife Promotion
EXAIR’s SUPER AIR KNIFE

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
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