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.
You hear a high-pitched squealing or grinding sound and, with slowly creeping apprehension, you realize it’s time for a new air compressor.
But is purchasing the right choice?
The manufacturing industry is struggling to meet increasingly demanding production requirements. Manufacturing facilities aren’t slowing down, they’re speeding up. They require solutions that support the needs of production, manage costs, and meet business goals. They need to avoid threats to manufacturing processes as well as the bottom line.
Simply shutting down until a new air compressor is purchased and installed, or living with faulty equipment, aren’t viable solutions. Renting an air compressor is the only way to keep the lines moving.
With a compound annual growth rate (CAGR) of 6.2%, the air compressor rental market is expected to reach $5.53 billion by 2026. Manufacturers are realizing the value of renting industrial equipment, specifically air compressors, from the right supplier.
Benefits of Renting an Air Compressor
In many situations, a rental air compressor can provide significant benefits for manufacturers. Here’s how:
1. Reduce Costs and Improve Cash Flow
Many equipment decisions are based primarily on financial considerations. An organization’s cash flow can be handcuffed by the investment required for purchasing a compressor. Depending on the compressor’s life span, long-term expenses can be a burden. In addition to lowering capital expenditures, renting an air compressor can reduce costs in other ways as well. It can reduce the need for regular maintenance and service, often an issue for older compressors. Many municipalities offer a tax incentive for energy savings, as well.
Renting could get you on the good side of the finance department since it wouldn’t be considered an owned asset, keeping it off the liability side of the balance sheet. In turn, companies maintain or improve their borrowing power. Renting enables companies to better manage overall costs while empowering production.
2. Avoid Downtime
When time equals money and the average downtime equates to an estimated loss of 5%-20% in productivity, problems with the air compressor aren’t something you can afford. Unexpected equipment failures require a solution. These unforeseen emergencies can be quickly eradicated by renting.
A strong relationship with a trusted equipment supplier can keep your lines moving. They have an air compressor ready and can deliver it rapidly when you need it. Manufacturing companies that capitalize with a quick response can keep project timelines on schedule.
3. Optimize Productivity
Manufacturers are tied to the life of a piece of purchased equipment. They are also left with the specific capabilities and output it produces. Newer air compressors deliver better results, with optimized air pressure allowing the company to optimize production in times of need.
Not to mention, with the improved cash flow and capital on hand, additional projects can be taken on since the facility isn’t financially restricted to specific equipment capabilities.
Rental air compressors enable greater flexibility in facility work. Rent an air compressor when production needs change. This opens the door for niche opportunities outside the normal realm of the current capabilities.
4. Latest Technology
The highly competitive equipment rental market forces companies to keep up-to-date machines in their inventory. The latest and greatest technology and equipment brings efficiency, specialization, and adherence to safety and emissions regulations. Don’t let your system become outdated and inefficient. The right compressor allows you to complete jobs faster and more efficiently.
5. Access to Expert Technicians
Skip the hassle of training an operator or employees on a new air compressor. The equipment company you select should be an expert in all their products. From answering questions to servicing the machines, access to their technicians allows you to focus on other business initiatives. If something were to go awry, let the experts handle it. That’s what they’re there for.
6. Meet Seasonal Demand
Every industry has a busy season. Even with additional help, your facility may struggle with the extra workers. Rather than letting compressed air become a logjam in production processes, add temporary capacity with a rental unit. Rented air compressors can be personalized to fit specific needs to efficiently fulfill seasonal demand.
An Air Compressor to Fit Your Needs
The type and size of air compressor you need will vary between industry and use. As a rule of thumb, the crossover zone between rental and purchase is the usage of the equipment. If the rental equipment is used at 60 to 70 percent of capacity, then it may be time to purchase rather than rent.
In all cases, you should consult with an expert to help you make the right choices. With the right air compressor, your production can run efficiently and effectively.
