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Packaging Manufacturer Saves Thousands in Energy Costs with OTC Solutions

By OTC Insights Team on May 2, 2025

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OTC Insights Team

Established in 1963, OTC Industrial Technologies (Ohio Transmission Corporation) 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.

Overview

Richwood Industries, a packaging products manufacturer in Grand Rapids, Michigan, faced significant challenges with its compressed air system. Routine maintenance was nearly impossible without disrupting operations, with only two air compressors and no backup. The system was inefficient, leading to excessive energy consumption and rising costs. Seeking a reliable and cost-effective solution, Richwood Industries partnered with OTC Industrial Technologies for its expertise in compressed air systems and energy optimization. Through a detailed air study, OTC developed a customized approach that improved system redundancy, reduced energy usage, and helped lower operational costs.

  • Customer: Richwood Industries, Manufacturing - Packaging Products, Grand Rapids, MI
  • Relationship with OTC: 5 years

Challenges

Before working with OTC, Richwood Industries grappled with an unreliable compressed air system that caused operational inefficiencies. The absence of a backup compressor meant that routine maintenance resulted in production downtime and disruptions. The Inefficient system guzzled excessive energy, escalating costs and diminishing overall efficiency. The lack of redundancy also raised reliability concerns, leaving the system susceptible to unforeseen failures. To ensure long-term success, Richwood Industries required a scalable, energy-efficient solution to bolster reliability, optimize performance, and trim costs.

Solution

OTC conducted a comprehensive assessment to identify the most effective solution. OTC replaced the system with a high-performance, energy-efficient Atlas Copco compressor to improve efficiency and reliability. This upgrade significantly reduced energy consumption while ensuring the system could meet production demands without disruption. OTC also converted one of the original compressors as a backup unit to ensure system reliability, allowing for uninterrupted maintenance and continuous operations.

Beyond enhancing system performance, OTC assisted Richwood Industries in securing a $9,000 energy rebate, further boosting the upgrade's cost-effectiveness. Combined with the rebate, the new system saved Richwood Industries nearly $8,000 annually in energy costs, delivering immediate and long-term financial benefits. Additionally, OTC implemented a long-term service and maintenance plan to ensure sustained efficiency and reliability well into the future.

See what our customer had to say:

"Thanks to OTC, routine maintenance no longer means production downtime. Their solution gave us the reliability and efficiency we were missing." - Plant Manager

Results

By partnering with OTC, Richwood Industries gained a more efficient and reliable compressed air system, saving nearly $8,000 annually in energy costs and earning a $9,000 energy rebate. The additional backup compressor allows for routine maintenance without disrupting production, supporting smoother day-to-day operations. Through this solution, OTC delivered long-term value while aiding in energy-conscious improvements that align with the company's evolving operational demands.

Contact one of our Air Experts to learn how we can service and support your compressed air needs.