• BLOG
  • CAREERS
  • CONTACT
  • COMPANY
    • HISTORY
    • MANUFACTURING EXCELLENCE
    • DEMING PRIZE
    • LEADERSHIP
  • PRODUCTS
    • PRODUCTS BY CATEGORY
      • OIL LUBRICATED COMPRESSORS
      • OIL FREE COMPRESSORS
      • RECIPROCATING COMPRESSORS
      • PORTABLE COMPRESSORS
      • MEDICAL AIR COMPRESSORS
      • AIR ACCESSORIES
    • PRODUCTS BY INDUSTRY
    • PRODUCT SELECTOR
    • CAGI DATASHEETS
  • SERVICES & PARTS
    • PARTS
  • TECHNOLOGY
  • MEDIA
    • NEWS
    • EVENTS
    • PRESS RELEASES
  • DISTRIBUTORS
  • BLOG
  • CAREERS
  • CONTACT
x
  • COMPANY
    • HISTORY
    • MANUFACTURING EXCELLENCE
    • DEMING PRIZE
    • LEADERSHIP
  • PRODUCTS
    • PRODUCTS BY CATEGORY
      • OIL LUBRICATED COMPRESSORS
      • OIL FREE COMPRESSORS
      • RECIPROCATING COMPRESSORS
      • PORTABLE COMPRESSORS
      • MEDICAL AIR COMPRESSORS
      • AIR ACCESSORIES
    • PRODUCTS BY INDUSTRY
    • PRODUCT SELECTOR
    • CAGI DATASHEETS
  • SERVICES & PARTS
    • PARTS
  • TECHNOLOGY
  • MEDIA
    • NEWS
    • EVENTS
    • PRESS RELEASES
  • DISTRIBUTORS
  • BLOG
  • CAREERS
  • CONTACT
x

Identify the Real-Life Cycle Costs of Your Air Compressor

Knowledge Center | ELGi
Identify the Real-Life Cycle Costs of Your Air Compressor

“Cost is king…” is a popular saying among the business circles and there could not be a better time than now to understand its implications.

The current pandemic situation has reiterated the significance of cost. Decisions regarding capital expenditure are being critically reviewed, as every organization is looking at ways for better cash management. In such scenarios, where expenditure is essential, there, every penny saved is equal to cash earned.

Air compressors are among the most important equipment used for varied applications across industries. Air compressors come in different types, sizes and makes. From its utility perspective, air compressors are machines which consume power. Every kW of power consumed is money spent / cost incurred.

Apart from the electricity cost, there is also the cost associated with maintenance and upkeep of the equipment. These are recurring costs incurred through the life of the compressors, to keep them in operation. Hence it is important to understand the different costs associated with air compressors and their contribution towards expenditure.

The overall cost incurred in procuring, maintaining and operating the equipment is often called as the “Total Cost of Ownership (TCO)” or “Life Cycle Cost (LCC)”. There are three main elements of cost used in calculating the life cycle cost, they are (1) Power /electricity cost (2) Overall maintenance cost, and (3) Initial investment.

Power Cost:

The electricity charges to operate the compressors are termed as power cost. The duty cycle of the compressor (i.e. full load or partial load) is an important factor while computing the power cost. Since air compressors are capital equipment, they should be operated on its full load capacity to reap its full benefits. Partial load cycle means the equipment will blow off air during the unload phase, which is (economically) undesirable. Power cost is always calculated as cost of power when the compressors run in loaded and unloaded condition. This is by far the most significant component of compressor life cycle cost.

Maintenance Cost:

The cost associated with keeping the compressor in good working condition is called maintenance cost. The key costs included are the cost of consumables like air filter, oil filter, oil, separator elements, refrigerants, desiccants, and valves which must be replaced at regular intervals as recommended by the manufacturer. The cost of regular spares, kit parts and critical parts should also be included. Labor is the additional cost incurred along with compressor maintenance when hiring a professional. In most of the cases, cost of the annual maintenance contract (AMC) would also be involved.

Initial investment:

The cost of purchasing the air compressors, its accessories and associated installation costs are referred to as the initial investment. During each purchase & installation, decision makers will evaluate all possible options to ensure optimum investment in procurement.

Hence life cycle cost is the sum of the three factors mentioned above. This can mathematically be expressed as:

Life Cycle Cost = Power Cost+ Maintenance Cost + Initial Investment

The above figure illustrates the contribution of the three elements in calculating the overall life cycle cost of the compressor. As can be observed, the power cost plays a vital role. It is essential to understand the maintenance costs and the power consumption of the compressor during the procurement phase itself. The reason is that equipment costing less might involve frequent maintenance and consume higher power.

Hence, when you consider purchasing an air compressor, you must be mindful of the costs involved, to understand the RoI for your business. Reach out to a compressed air expert to know what your business requirements are and what will be the ideal option for you.

Contact 704-943-7966
[email protected]
  • COMPANY
  • PRODUCTS
  • SERVICES & PARTS
  • CAREERS
  • MEDIA
  • CONTACT
© 2023 ELGi All rights reserved.
  • Homepage
  • Company
  • History
  • Manufacturing Excellence
  • Partners
  • Products
  • Oil Lubricated Compressors
  • Portable Compressors
  • Oil Free Compressors
  • Air Accessories
  • Heat Recovery System
  • Services & Parts
  • Parts
  • Service Kits
  • Careers
  • Technology
  • Media
  • Press Releases
  • ELGi Blog
  • ELGi Wiki
  • Contact
  • Privacy Policy
Contact
704-943-7966
[email protected]
© 2023 ELGi, All rights reserved.

CONNECT

WITH US

Let us help you find the perfect solution to your needs.

  • Hidden
  • This field is for validation purposes and should be left unchanged.

PORTABLE - CONNECT

WITH US

Let us help you find the perfect solution to your needs.

  • Hidden
  • This field is for validation purposes and should be left unchanged.
FIND AN ELGi DISTRIBUTOR

Let us help you find the nearest distributor.

  • This field is for validation purposes and should be left unchanged.

REQUEST

A QUOTE

Let us help you find the perfect solution to your needs.

  • Hidden
  • This field is for validation purposes and should be left unchanged.

DROP AN

INQUIRY

Let us help you find the perfect solution to your needs.

  • This field is for validation purposes and should be left unchanged.

PORTABLE REQUEST

A QUOTE

Please complete the form below and one of our representatives will be in touch shortly.

 

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

ONLINE

SERVICE REQUEST
  • This field is for validation purposes and should be left unchanged.

REGISTER

FOR AN EVENT
  • This field is for validation purposes and should be left unchanged.

DOWNLOAD

BROCHURE

Let us help you find the perfect solution to your needs.

  • With sending this inquiry I consent to ELGi sending me more information on their products and company.
  • This field is for validation purposes and should be left unchanged.

CONNECT

WITH US

Let us help you find the perfect solution to your needs.

  • Hidden
  • This field is for validation purposes and should be left unchanged.

You are visiting ELGi from outside USA, for more relevent information, please visit our website for your region by selecting it from the dropdown below.

DOWNLOAD CHECK LIST

"*" indicates required fields

Consent*
With sending this inquiry I consent to ELGi sending me more information on their products and company.
This field is for validation purposes and should be left unchanged.

This website uses cookies. By continuing to browse this website you are agreeing to our use of cookies.

Read MoreCookie settingsACCEPT

Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT