Did you know that as manufacturers you can leverage your budget process into additional profit and revenue for your business?
Too often, companies consider budgeting as a financial exercise when it could be used to set goals and drive business growth. Rather than budget for growth, some businesses will reflexively reduce their budget at the first sign of trouble, especially when there are concerns about the economy, fewer orders, or market challenges. This often leads to more problems and deeper financial issues, and then more budget cuts. It’s a vicious cycle that companies fall into.
Rather than wasting money by plugging in estimates of what could go wrong with a budget for repairs, start planning for success by implementing and budgeting for a preventative maintenance plan, especially for your air compressors.
Air compressors are critical for production. According to the U.S. Department of Energy, more than 70 percent of manufacturers in the country use some form of compressed air. Any unexpected shutdown for a compressor often means downtime for the facility and work stoppage.
Because compressed air is so important for production, planning for compressor repairs in budgeting is akin to anticipating a production shutdown. Rather than preventing the problem, you’re expecting it and putting aside money to mitigate disaster. Don’t budget for downtime; use that money to ensure maximum availability of your compressed air with preventative maintenance.
Preventative maintenance consists of repairs, calibrations, equipment checks, and parts replacement on equipment. Most, if not all, manufacturers conduct some preventative maintenance, whether a safety check before using a tool or replacing parts like filters. Too often, this is minimal, leaving your equipment at continued risk of a breakdown or failure.
Updating your preventative maintenance strategy, making it a production priority, significantly reduces the chance of breakdown. It extends the life of critical equipment like air compressors. You can reduce capital costs by eliminating the need to purchase new equipment and keep production moving efficiently by reducing unexpected air compressor downtime or shutdowns. That means increased profit and more year-end revenue for minimal budget investment.
When budgeting for maintenance, you have several options.
First is using internal resources to conduct regular maintenance. This may be the lowest-cost option, but, depending on your internal resources, it’s also the one with the highest risk. Your internal team may not have the experience or skills to conduct thorough preventative maintenance. Customer service agreements are another option.
Customer service agreements (CSAs) are offered by experts in service and repair like OTC Industrial Technologies. CSAs are contracts that map out services designed to maximize the equipment's performance, lifecycle, and reliability. OTC’s tiered approach to customer service agreements includes basic preventative maintenance, which offers a 30-point inspection and service; higher-tier options that include 24/7 remote monitoring, troubleshooting, and diagnosis application with required maintenance repairs; as well as a top-tier option for full “bumper-to-bumper” service that covers everything.
With OTC, you also have the option to include additional services like a parts-only agreement or advanced parts ordering. You can tailor the billing options and have access to equipment sales and rental. There’s no reason to settle with an agreement you aren’t comfortable with. Work with the provider to find one that meets your business needs, budget, and production requirements.
If you’re considering preventative maintenance for your compressors, contact OTC to discuss your needs. Because OTC is one of the largest compressed air providers, we offer several critical advantages:
OTC’s goal is to ensure your compressed air systems never go down. You won’t have downtime from your air compressors; you'll get optimized operation and maximum value out of the system.
If you’re ready for a better approach to managing compressed air at your facility, contact OTC Industrial Technologies to discuss your needs. Let’s see how we can boost your budget and increase efficiency for your team.