ROI – Return on Investment

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 personal 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-

ROI

  • 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

Gain from investment could include many factors, such as energy savings, reduced scrap savings, cost per part due to increased throughput savings, and many more.  It is important to analyze the full impact and to truly understand all of the savings that can be realized.

Cost of investment also could have many factors, including the capital cost, installation costs, downtime cost for installation, and others.  The same care should be taken to fully capture the cost of the investment.

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 $37, assuming a $5 compression fitting and $50 in labor to install, the result is a Cost of Investment of $92.00. The ROI calculation for Year 1 is-

ROI2

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

Armed with the knowledge of a high ROI, it should be easier to get projects approved and funded.  Not proceeding with the project costs more than implementing it.

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.

Brian Bergmann
Application Engineer

Send me an email
Find us on the Web 
Like us on Facebook
Twitter: @EXAIR_BB

Energy Rebates and EXAIR Products

In case it goes unnoticed, EXAIR focuses on engineered compressed air point of use products to ensure that our customers are utilizing their costly utility as efficiently as possible.  The main benefits to purchasing EXAIR products are the support you receive from us at EXAIR, the quality of the product, the savings in compressed air, and the increase in safety.  Another added benefit is a large number of utility companies are offering rebates on the purchase of engineered nozzles, just like the Super Air Nozzles that EXAIR offers.

Many energy providers offer these energy rebates for commercial or industrial users.  Here in the Cincinnati area, Duke Energy offers rebates on items such as lighting, air compressors, engineered air nozzles, heaters / dryers for extrusion machines, energy management systems, variable frequency drives, data center equipment, even food service equipment, custom incentives, and many other items.

Duke Energy Rebate

Example of our local energy rebate offering for Engineered Nozzles

For each engineered compressed air nozzle that is installed, in order to meet the rebate requirements they must flow less than or equal to given flow rates in SCFM at 80 psig inlet pressure. The pipe sizes, flow rates, and EXAIR equivalents are shown below.

EXAIR Engineered Air Nozzle Part Number EXAIR Flow Rate @ 80 psig
#1102/#1103 – 1/8 NPT 10 SCFM
#1100/#1101 – 1/4 NPT 14 SCFM
#1108SS-NPT/#1109SS-NPT/#1110SS-NPT
All are 1/8 NPT
2.5, 4.9, 8.3 SCFM
respectively
#1003 – 3/8 NPT 18 SCFM

By just replacing the nozzles the customer saved 2.7 SCFM per nozzle.If we take an example such as the EXAIR Case Study  shown below for 1/4″ copper tube that was being used as an open ended blow off.  The copper tubes were consuming 19.6 SCFM at 100 psig inlet pressure, there were 10 machines with one line per machine operating 40 hours, 52 weeks per year.   The customer retrofitted the open pipes with a model 1100 Super air nozzle and was able to reduce the air consumption by 2.7 SCFM per nozzle.  If they were to purchase these nozzles this year, current list price for a model 1100 Super Air Nozzle is $36.00 USD, then apply for the energy rebate offered by Duke Energy and receive $20.00 per nozzle replaced.  The total savings and return on investment is shown below.

Case Study 1561

EXAIR Model 1100 Super Air Nozzle Replaces Open Copper Pipe Blow Off

10 nozzles x 2.7 SCFM = 27 SCFM  x 60 minutes per hour x 8 hours per day x 5 days per week x 52 weeks per year = 3,369,600 SCF of compressed air saved per year.

3,369,600 / 1,000 SCF x $.25 = $842.40 USD savings in compressed air per year.

Cost Savings per week = $16.20 USD

Total purchase cost is  $36.00 x 10 nozzles = $360.00 USD

Energy Rebate = @20.00 per nozzle x 10 nozzles  = $200.00 USD in rebates.

$360.00 USD purchase price – $200.00 USD energy rebate = $160.00 USD final purchase cost.

Return on investment at a savings of  $16.20 USD per week is

$160.00 / $16.20 = Less than 10 weeks pay back!

By applying for the energy rebate this customer could reduce the ROI of this air savings project from just over 22 weeks (which is still very good) to less than 10 weeks.

If you would like to learn more about whether there are Industrial energy rebates available in your area, contact an Application Engineer and let us know where you are located and who your energy provider is.

We will help you determine the correct engineered solution to save your compressed air as well as help you to apply for eligible energy rebates in your area.

Brian Farno
Application Engineer Manager
BrianFarno@EXAIR.com
@EXAIR_BF

 

I Love It When They Show The Math

In every math or science class I ever took – from high school Algebra I, to CHEM101 in college, or a variety of classified material courses in Naval Nuclear Power School – it was always good form to show your work. And by “good form” I mean “necessary to avoid an F.” I’ve found, through helping my teenage sons with their homework (whether they want me to or not, but that’s another story,) the same rules apply today. And rightly so.

My oldest is slightly (at least) more interested in athletics than academics. Sunday night, as I was going to bed, I saw him in the living room. His face was not obstructed by his cell phone and he didn’t have his headphones on, so I saw a rare opportunity for a real-time conversation. He was watching game 7 of the NBA Championship, and it was near enough to the end of the game that I figured I could watch it with him and not sacrifice too much desperately needed sleep.

If you watched the series, you saw some phenomenal play by both the Cleveland Cavaliers and the Golden State Warriors. If you saw the end of game 7, you saw “the block” – Cleveland’s LeBron James came out of NOWHERE to rob Andre Iguodala of a quick two points on a breakaway lay-up. During the obligatory replays, I kept thinking that what James had done might border on the physically impossible. Then, ESPN’s “Sport Science” reel put into perspective just how close to that border he came:

Now, we don’t have anyone who can chase down a professional athlete and jump 12 feet in the air to take a basketball away from him, but we DO have a staff of engineers who can test air blow off products and “do the math” on how much better a fit to your application an EXAIR Intelligent Compressed Air Product would be. Our Efficiency Lab service is free and tests your current product to provide you a report comparing air savings, noise reduction, force values and a simple return on investment.

In our defense, I believe we are MUCH better at this than LeBron James or Steph Curry would be.

In our defense, I believe we are MUCH better at this than LeBron James or Steph Curry would be.

Do you want to find out how much quieter and efficient an EXAIR Intelligent Compressed Air Product might be than what you’re using now?  Give me a call…you can try one of our products in your facility, or we’ll test one of yours in ours.

Russ Bowman
Application Engineer
Find us on the Web
Follow me on Twitter
Like us on Facebook

How Much Money Will You Save with Engineered Air Nozzles

The simplicity of installing an air nozzle and the importance of saving compressed air (which in turn saves money) go hand-in-hand with our engineered air nozzle product line. For an 8 hour shift running 250 days per year, replacing one 1/4″ open air tube can save $650 dollars per year. Replacing any run-of-the-mill, commercial air nozzle can typically save $330 dollars per year!

How many open tubes or commercial air nozzles do you have?
10 tube replacements = $6500 saved per year
25 tube replacements = $16,250 saved per year
50 tube replacements = $32,500 saved per year                          

10 commercial nozzle replacements = $3300 saved per year
25 commercial nozzle replacements = $8250 saved per year
50 commercial nozzle replacements = $$16,500 saved per year

If you want to know EXACTLY how much replacing your current compressed air blow off devices with EXAIR engineered air nozzles will save you, take advantage of our free Efficiency Lab. We will test your current device for flow, force and noise levels with our calibrated equipment. You will receive a report with all the details, including and ROI – which is generally within weeks!Capture2

 

To see our complete line of nozzles, get our Blowoff Guide sent to your desk. EXAIR offers Air Nozzles ranging in thread size from our smallest Atto Super Air Nozzle with an M4 thread providing 2.0 ounces of force to our largest 1-1/4″ NPT Super Air Nozzle providing 23 lbs. of force. In addition to the various thread size and force levels, select nozzles are also offered in brass, stainless steel, zinc aluminum alloy and even PEEK plastic for superior chemical resistance or applications needing a non-marring nozzle (a maintenance crew for a large telescope used the PEEK nozzles to blow off their large mirrors). Offering such a wide variety to choose from, selection can seem like a daunting task. Luckily we have you covered with our FREE Blowoff Guide to help make the best product selection for your needs. The Blowoff Guide features performance specs as well as dimensional information and airflow patterns. Some things to consider when making a choice would be matching existing pipe size, material compatibility, noise level in the area, compressed air requirement and/or force required for successful blowoff.

Blowoff guide

To order your FREE Blowoff Guide, please click here.

We also offer a few handy accessories for our Air Nozzles as well. For example our Flexible Stay Set Hose are available with 1/4 MNPT X 1/4 MNPT fittings or 1/4 MNPT x 1/8 FNPT connections and lengths from 6″ up to 36″. The Stay Set Hose can be bent to deliver the air to the critical area while holding position until it is manually repositioned.

stay sets

Flexible and durable, EXAIR Stay Set Hoses come in lengths from 6″ to 36″.

Additionally we offer our Swivel Fittings allowing for 25 degrees of movement to provide the best angle for air delivery to the part. These useful tools are available in 316ss or 303ss from M4 thread up to our largest 1″ NPT size.

Swivel Fittings

Swivel Fittings make it easy to adjust the aim of your Air Nozzle.

For help selecting the right engineered Air Nozzle and accessory to fit your specific application, please contact EXAIR for assistance.

Justin Nicholl
Application Engineer
justinnicholl@exair.com
@EXAIR_JN

 

EXAIR’s Efficiency Lab can Help With your Energy Audit, Quantify Savings and Provide an ROI

I recently received an inquiry from a customer to test their current air guns through our Efficiency Lab service. According to the operators, the handheld blow gun they were purchasing from a commercial retailer was too loud and complaints were rolling in.  They were also hoping to save some compressed air in the process as they were performing an energy audit at the same time.

Commercial Air Gun w/ Cross Cut Hole

Commercial Air Gun w/ Cross Cut Hole

Cross Cut Hole Nozzle

Cross Cut Hole Nozzle

The gun they sent in looked fairly similar to our Precision Safety Air Gun but it did not have an engineered nozzle on the tip of it.   Instead, it was simply a cross cut hole in a piece of material.   The air inlet to the gun was a 1/4″ NPT just like our Precision Safety Air Gun, the extension on the gun was slightly longer, the only significant variance I saw was the tip.

EXAIR Model 1410SS-CS

EXAIR Model 1410SS-CS

The Model 1110SS Nao Super Air Nozzle and Chip Shield

The Model 1110SS Nao Super Air Nozzle and Chip Shield

To try and get as much information as possible I measured the O.D. and I.D. of the extension, the hole size was approximately .140″.  I measured the extension on our Precision Safety Air Gun just to see what is different, it came in at the same size.  So, I flow tested the competitive blow gun with their tip on it and came up with air consumption of 12.69 SCFM, noise level of 92 dBA at 3′ away, and a blowing force of 11.5 oz at 80 psig.   I then measured the same attributes of EXAIR’s model 1410SS-CS Precision Safety Air Gun at 80 psig inlet pressure.  The model 1410SS-CS measured 8.3 SCFM, gave 8.1 ozs of working force, and only produced a 75 dBA sound level from 3′ away.

The sound level reduction was a total of 17 dBA which is below the OSHA standard for allowable noise level exposure, as well as reduced their air consumption by 4.39 SCFM.  That is almost a 35% reduction in their compressed air usage per gun replaced.  After seeing these levels of reduction the customer had more than enough information to provide management with in order to replace the blow guns not just for noise level reduction but also because it will reduce air use and save money. A clear supportive role in their energy audit.

If you would like to discuss how EXAIR can provide some free force, flow, and noise level testing for your facility, please contact an Application Engineer or check out the Efficiency Lab page on our site.

Brian Farno
Application Engineer Manager
BrianFarno@EXAIR.com
@EXAIR_BF

Standard Air Knife – 24 Years in an Application and Counting

“I’ve  been using your Model # 2018SS 18″ Stainless Steel Standard Air Knife since 1992 and it’s STILL working great!”. This was the first thing a customer told me last week when we began our conversation. Of course we really appreciate hearing about success stories like this as it just further demonstrates our commitment to provide top quality, energy efficient, compressed air operated products.

Std Air Knife

Standard Air Knife – available in lengths from 3″ up to 48″ in aluminum and 303ss construction.

 

The next part of the conversation was a subject we don’t necessarily like hearing, as the customer was thinking of replacing our unit with a blower driven air knife due to the concern of the amount of compressed air usage and resulting energy costs.  They initially inquired about using the blower to supply our unit but all of our products require high pressure, compressed air to operate and wouldn’t run on a blower type system. They are using the Standard Air Knives on their extrusion operation where they have a unit mounted above and below the part as it exits the machine, to remove the remaining moisture from the part.

I explained that blower systems may seem like a more economical choice due to the lower energy demand compared to a compressor, but in actuality, they require a lot of maintenance hours in the form of replacing bearings, belts, filters, etc. Some of these repairs can’t be performed at the site and require the unit to be taken offline and sent back to the manufacturer for refurbishment, resulting in costly downtime. In addition, these type of systems require a large footprint for installation and large duct for the airflow.

EXAIR actually performed a comparison test putting our 24″ Super Air Knife up against common blowoffs in the form of drilled pipe, a manifold of inefficient flat nozzles and a blower driven air knife. Please note, the Super Air Knife is more efficient than the Standard Air Knife that the customer is using, but as you will see in the chart below, the minimal increase in compressed air requirement for the Standard Air Knife would be quickly offset by the overall bottom line.

Air Knife Blowoff Comparison

While the annual electrical/energy cost was higher for the Super Air Knife, the initial purchase price and annual maintenance costs were significantly lower, making the 1st year of ownership over 3.5 times less than that of the blower driven unit. Also, with the design of our Air Knives entraining large volumes of surrounding air, wind shear is reduced, which decreases the noise level generated. As a result, our units are going to produce sound levels well below the allowable noise exposure levels set forth by OSHA Standard 29 CFR – 1910.95(a) when compared to other devices.

After explaining this information to the customer, they are going to re-evaluate their requirements. As the customer put it, “it is kind of hard to argue against 24 years of successful operation with your product”. I would tend to agree!

Justin Nicholl
Application Engineer
justinnicholl@exair.com
@EXAIR_JN

Hard Work Leads To Good Results

A few months ago I wrote a blog titled Great Team Make-up about being an assistant coach for my oldest son’s youth football team. I take pride in the opportunity to work with young kids in teaching them the value of teamwork and showing them when you work hard, the results will speak for themselves. It’s not just about winning or losing, but rather learning to listen, be respectful (win or lose) and growing as a player.

18836062401_fb883d8eea_z

6 rushing touchdowns in a single game? I’ll take it.

The first 3 practices were no pads, no contact so these days were spent conditioning and learning offensive and defensive positions. (or as the kids called it – “The most boring thing EVER!”). We have been in full contact practice for the last 5 weeks and it’s pretty cool to see how much the kids have learned in such a short time. We’ve had a couple scrimmages but this past weekend we had our first real game.

As both teams took the field you could see the nervousness of the players and the anticipation of the coaches on both sides. When you start playing at 9:00 AM, with dew on the ground, it’s kind of difficult for 5-7 year olds to hold on to a wet football. The game started pretty slow and by halftime it was only a 6 point difference. The second half was much different, our team really started to “click” on offense. We had some great blocking up front coupled with some determined running backs and scored consecutive 65, 52 and 49 yard rushing touchdowns. On the opposite side, our defense tightened up and held their opponent to only 1 score in the second half leading to a 38-16 victory! It was awesome to see our group of young men (who were very recently mere 5-7 year-olds trying to hang on to the wet ball) so excited about winning and to see their effort pay off. As coaches we were equally satisfied that not only were we able to get the win, but to see these incredible kids execute what they’ve learned in practice and transition that to the game.

Here at EXAIR, our commitment to be the best in the industry is best reflected in the solutions we provide for our customer’s needs. Two of our most informative tools are the Application Database and Case Study Library. The Application Database is over 1000 applications in a problem/solution format, detailing various industrial processes and the EXAIR product solution. Whether you’re dealing with a static electricity issue, needing to provide cooling to critical instruments, drying product, looking to convey media or just needing to provide blowoff, chances are you will find the information you are looking for.

The Case Study Library is a database where you can see quantifiable benefits or ROI of installing EXAIR products. We typically show improvements in dollar savings, compressed air savings, production increases, noise exposure decreases and safety improvements focused on reaching important OSHA standards. We are always seeking new case studies and can offer an incentive or SWAG in return for providing us the details on your application. A great place to start is with our Efficiency Lab, where we can actually gather the details for you.

Some examples of the information we are looking to obtain:

  • A decrease in air consumption
  • Improved safety
  • Lowering noise level
  • Reducing the amount of rejects – increasing production

Give us a call at 800-903-9247 to team up with one of our application engineers to see how we can coach you to a win in your facility.

Justin Nicholl
Application Engineer
justinnicholl@exair.com
@EXAIR_JN

Harvard Stadium 57240 image courtesy of Ted Eytan, Creative Commons License

 

%d bloggers like this: