Maintenance and energy – today’s hot topics September 03rd 2009 David Burton, general manager at Boge Compressors looks at the impact that the current economic climate is having on the compressed air industry.
We are in unprecedented times. The financial crisis, the credit crunch, falling house prices and a global recession have all led to a situation that some claim is worse than the Great Depression! According to the Office for National Statistics, total business investment fell by 6.8% in the first quarter of 2009 compared with the same period in 2008 as a result of a drop in capital spending by industries.
Our industry has certainly not escaped the impact of reduced capital spending with statistics from the British Compressed Air Society demonstrating that our market has contracted by 50% this year. Industry in general has limited capital spending and has looked for ways to reduce input costs in order to run a lean operation. As a direct result we have seen two trends emerge in our sector:
Does maintenance really matter?
Because plant managers’ budgets have come under much closer scrutiny, some of them are choosing to select the cheapest service provider or reduce their level of maintenance work. However, such a decision will be detrimental to the quality of the air produced, the lifetime of wearing parts, the associated energy costs and ultimately the reliability. In short, such decisions will create repercussions which will in fact create more cost to the business.
Choosing to reduce the frequency of service visits or eliminate maintenance work altogether is clearly a false economy. It is a fact that caring for a compressor optimises its efficiency and reliability.
By following the manufacturers recommended service schedule, by using only OEM’s consumables and by opting for trained personnel to maintain the compressor will ensure that the integrity of the compressor is maintained and its efficiency is retained. Few consider the real cost of downtime when a system fails – not only actual production losses but also manpower that is stood idle.
Energy efficiency in vogue
Creating and operating an energy efficient compressed air system has long since been an objective for the savvy factory manager but recently it has become a more mainstream concern as more businesses now look for ways to reduce their input costs. Luckily, it is never too late to save energy!
We have been supporting our customers in achieving sustainable compressed air system optimisation for some years now, not only through the manufacture of low carbon technologies where maximum efficiency is at the heart of the design, but through following a four step approach to energy management. This process advocates auditing the existing system to identify where improvements can be made, to implementing a continual improvement program to ensure that savings are long term.
Certainly in the short term it is likely that we will see more businesses looking to optimise their current compressed air system rather than invest in new equipment. It is worth remembering that investing in low carbon technologies will reduce costs in the long run. Crucially, there are still financial avenues open such as the Carbon Trusts Energy-Efficiency Loan designed to provide the SME business with interest-free money to fund replacement equipment with cost saving energy efficient technologies.
2010 and beyond…
There are now some signs that the UK economy is improving. At the time of writing house prices are beginning to pick up, the Pound has strengthened quite significantly and manufacturing output has increased for the second consecutive month. Three consecutive months would signal the end of the downturn though pundits do feel the road to the more permanent recovery will be a gradual gradient.
Clearly we are not out of the woods yet. Economic commentators suggest that it could be another 12 to 18 months before we start to see a sustained economic recovery. Certainly at Boge we continue to invest in the future development of the business, the products and the team to ensure that now and in the future we can offer our customers cost effective, energy efficient and quality compressed air solutions. More articles from Boge Compressors Ltd: |