OTC Insights Team
Established in 1963, OTC Industrial Technologies is one of the largest industrial distributors & service providers in the United States. We're committed to seeing industrial operations advance through expert technical solutions & unmatched support using our years of experience.
Compressed air is critical for modern manufacturing. From powering tools to packaging, to finishing, a multitude of critical processes require compressed air.
In the past, if you needed compressed air you bought an air compressor. You installed the piping, dryers, and boosters until you had the service you needed to meet your goals. Someone on your team was taught how to manage the air compressor. You brought in outside help when you needed additional maintenance.
It seems simple, but ownership comes with challenges.
Today, manufacturers have choices when it comes to compressed air delivery, including air-over-the-fence service. In this article, we’ll look at the advantages and disadvantages of these delivery methods and discuss how manufacturers can analyze their compressed air requirements to better understand the best option for their needs.
What Is Air Compressor Ownership?
Today, there are more options than ever for purchasing an air compressor. From standard diesel engine air compressors to large-volume and high-pressure oil-free air compressors, manufacturers have the option to pick and choose the system they need. There are several challenges that come with air compressor ownership, starting with cost. While there are lend/lease and payment options available, there is typically a significant initial capital expense for purchasing an air compressor. In addition, internal resources will need to be applied to maintenance and upkeep, which will also increase the cost. These hidden costs can quickly reduce the ROI you see with ownership.
However, there are advantages, including the simplicity of ownership rather than working with an outside supplier. In addition, you can later sell air compressors that you own but aren't being used. You can also receive a tax write-off for your purchase.
What Is Air-Over-The-Fence Compressed Air?
Air-over-the-fence is an innovative compressed air delivery method pioneered by DIRECTAIR®, an OTC Industrial Technologies product. It works like a fourth utility service, like electricity, where compressed air is purchased directly from an outside service provider. Rather than managing the air compressors with internal resources, users pay one monthly fee for only the air they use.
The service provider typically evaluates the production needs of the facility, and then installs the needed compressors and system at the site, with the manufacturer providing the space outside the facility. Providers with remote monitoring capabilities like OTC will manage the service and handle preventative maintenance and repair.
There are numerous advantages, including eliminating the initial capital expense and the cost of repair and maintenance services. The manufacturer has the clean compressed air it needs, and with some providers like OTC and the DIRECTAIR® product, they have guaranteed uptime. Costs can be contained with a stable price for the air, and there are almost always significant energy savings (typically between 35% and 50%), as the provider will use energy-efficient compressors with automated controls to optimize operation.
With air-over-the-fence, the manufacturer does not own the compressors. Management of the system is handled by the provider.
Conduct an Air Audit to Determine Your Needs
Before making long-term decisions on your compressed air system, you should conduct an air audit.
With an air audit, an expert in compressed air will evaluate your production needs and facility. They will review your internal systems to see if there are any problems, and track energy use as well as compressed air requirements over time.
With the air audit, you’ll see if there are opportunities for improvement. You’ll see how much air you need now, as well as estimates for the future. Then, with that data, you can calculate potential savings by switching your delivery service with an Owner’s Cost Analysis. You’ll see how much you can save by selecting a different option.
For some manufacturers, air-over-the-fence makes the most sense. Rather than struggling to maintain a compressed air system in addition to its normal production activities, the manufacturer can focus on more profitable work, safe in the knowledge that it has guaranteed uptime on the compressors. Other manufacturers that don’t need as much compressed air, or that have highly fluctuating compressed air needs, may find compressed air ownership is all that is needed.
If you have questions about your options for compressed air, contact DIRECTAIR® about air-over-the-fence solutions. They are the undisputed experts in offering air as a utility with more than five times the number of sites than any other air-over-the-fence provider. DIRECTAIR® can provide the information, insight, and air audit you need to make the best decision for your business.
