How will a Backup Air Compressor help my Business?
Let’s use a manufacturing business as the perfect example; compressed air is vital for operations, and if it breaks down, you may as well turn off the lights and count your losses. You will soon find out that besides losing production uptime when the compressor is down, it may also spoil the current product that is in your line-up.
For example, if a food manufacturer goes down, not only do they lose hours of production, but whatever is currently in their production line is most likely spoiled because it may not be baked, or mixed, or put together properly, as the line is not functioning correctly.
How much does a Compressor cost?
Let’s just say, having a Backup Compressor now will SAVE you BIG time later…
Depending upon your horsepower, purchasing a backup air compressor for your business could cost you in the region of R15,000 to R50,000, or even R100,000 range. This may seem extreme, but if you think about the costs and consequences of not having it, your management team will be very happy that they chose to buy a backup.
Think of investing in backup equipment as a strong investment with a great ROI. Even if your air compressor is brand new – you never know when it can fail for whatever reason, at any time, no matter what brand or size it is. Unfortunately, that’s the way it is with any piece of man-made machinery. Also, this piece of equipment will eventually need servicing, which as stated before, is much more cost-effective with a backup compressor.
As the saying goes, “It’s better to be safe than sorry.”
Many manufacturing businesses don’t have 100% backup but have enough backup to run their main equipment and get important projects completed. This is common and at the end of the day, it’s much better than costing your business thousands of rands by having nothing. You will also find that some facilities will outgrow a compressor – they’ll get a new, bigger one, and then use the old one for a backup. Facilities may buy 3 compressors to begin wit,and two of them should run their plant while the third is always a backup.
To help you get a better idea of how important it is to have a backup air compressor for your business, here’s an example.
You run a CNC shop with a staff of 25 that needs compressed air to operate their machines. If the air compressor goes down 2 hours into an 8-hour shift (i.e. 8 AM), you call your service provider and they schedule emergency service for 11:00 AM that morning. You decide to keep your staff “busy” instead of sending them home because you are already running a very tight schedule and delays lead to unhappy customers, which no business can afford unhappy customers. To help pass the time, you instruct employees to sweep the floors, wipe down machines, pull weeds outside, etc. These are all things that must be done, which you would ideally not pay a cost-effective, unskilled worker to do.
The service tech arrives at 11:00 AM and has the machine up and running by noon! This is an ideal turn around, and you were fortunate enough to not have to order and wait for any repair parts. Even with this relatively short turnaround time, you have lost 4 hours of production. Now let’s look at some rounded average figures (you may want to sit down for this part):
Average Worker Wage – R100.00 per hour + your costs (including taxes, workmen’s compensation, and insurance) = R120.00 per hour.
25 Staff Members at R120.00/hr x 4 hrs = R12,000.00
Then, assuming your schedule does not plan for downtime, you will need to pay the staff overtime to stay and make up for lost production time. This R12,000 suddenly becomes R14,500. We still have not included the cost of the additional overheads of the shop being open for this extra period.
Adding all these costs brings your grand total to roughly R18,000+ for a 4–hour period without compressed air!