Case study: metal fabrication company reduces costs with Kaeser

When Kaeser got involved, this metal fabrication company went from blowing energy costs to reducing them. Thanks to Kaeser Compressors for the use of this case study.

About the company

This growing metal fabrication company was using an older system that seemed too small for its job. The system had unreliable air flow, and energy consumption costs were increasing. Enter Kaeser.

Problem: modulating air flow, bigger energy bills

A precision metal fabricator was spending considerable time and money maintaining their aging compressed air system — time that would be better spent on their business. A 40 hp, modulating control compressor supplied the flow, but problems with downtime had them looking for a more reliable solution. Additionally, even with their back-up 40 hp unit, system pressure fluctuations caused frequent disruptions to their compressed air supply, impacting reliability at the point-of-use and left them wondering if their compressor was undersized.

Solution: dual control compressor

A comprehensive Air Demand Analysis (ADA) revealed that the modulating compressor was actually oversized in a big way. The compressor was running on average at only 30% capacity and couldn’t respond to the system-wide pressure fluctuations — all the while consuming nearly full power and racking up their energy and maintenance bills. A single 20 hp dual control compressor could reliably supply the flow and keep energy costs low. And to make it even easier, authorized Kaeser technicians could handle the installation and all annual maintenance.

Results: reliability and energy cost savings

The 20 hp compressor has reduced their energy costs by 40% — even though growth has increased their average demand by 20%. The second 20 hp compressor provides complete redundancy and with the two compressors splitting the load, maintenance costs have also been cut. They no longer have to continually monitor the system for pressure drops or worry about disruptions in their compressed air supply. This new split system was just the solution they were looking for.
  • Specific power of previous system: 48.09 kW/100 cfm
  • Specific power of new system: 22.47 kW/100 cfm
  • Annual energy costs of previous system: $19,716
  • Annual energy cost savings: $7,958
  • Utility rebate: $6,680
  • Total first year savings: $14,638
  • Simple payback period: 1.8 years

Compressed air assistance

Elevated Industrial Solutions is ready to help with ADAs and analysis. Contact us for service if you’re in the Detroit, Flint, Ann Arbor, Toledo, Dayton, Cincinnati, or South Carolina areas.

Top challenges facing the metal fabrication industry

The metal fabrication industry is going through numerous changes quickly. Technology is evolving, customer demands are changing, and new materials are being requested. At the same time, there is a lack of skilled workers and fewer raw materials available.

The obstacles are seemingly infinite, but this is a resilient industry. To help prepare for the future, here are the main challenges facing the metal fabrication industry…

Rising costs

Although the issue of rising costs is universal, inflation is having a significant impact on this industry. As consumers know, the cost of raw materials is increasing. In the fourth quarter of 2015, for instance, the price of iron ore was about $48 per ton. It rose to more than $87 in 2019. In 2021 it skyrocketed to nearly $200! The price is down from that high mark, thanks to inflation reduction measures, but is still more than $100.

Demand for customization

manufacturing

Consumers are demanding faster delivery speeds for their metal products and expect complete customization. A successful metal manufacturer strives to meet these demands, no matter how difficult. These customizations and specializations require estimates and quotes. Not only is the product more expensive already with these customizations, but added labor (including the estimates themselves) adds to the cost.

Customization also creates an issue for inventory. In an attempt to leverage lower prices, a shop may purchase a bulk supply of materials. These materials may be useless if a customer demands customized metal products.

Dealing with customization and finding that balance between efficiency and customization demands can be a major issue for metal fabricators.

Limited supply

The pandemic created a significant barrier in the supply chain, which metal fabricators (and manufacturers of all types) are still recovering from. But it’s not just the pandemic, which (as of this writing) started over four years ago; it’s also issues with transportation labor and staff shortages.

There is also a lack of machinery, as machine manufacturers and assembly lines are struggling to create output. Used machinery has become increasingly popular, although this creates obvious concerns for manufacturers who can’t afford a shutdown.

Meeting sustainability expectations

According to McKinsey & Company, “the steel industry is among the three biggest producers of carbon dioxide.” With steel produced in a relatively small number of select locations, it’s a prime candidate for decarbonization. There is demand from both governments and consumers for carbon-friendly metal products, but reducing the overall footprint is not easy.

“Green metal” is mostly achieved by using renewable energy in the manufacturing process. Wind, solar, and hydroelectric power can all make metal fabrication less impactful on the environment, but implementing these changes has a cost. Metal fabricators must weigh the benefits, including the potential for higher sales and lower long-term costs, against the high initial price.

Workforce shortage

challenges in metal fabrication

No matter the industry, sector, or specific role, there is a shortage of labor. It’s impacting technology, healthcare, transportation, retail, food service, and yes — metal fabrication. There simply aren’t enough CNC operators, machining specialists, and general laborers to meet industry demands. This has led to delays, shortages, missed orders, and an overall sluggishness to the industry as a whole.

To address this problem, people within the industry have made changes and launched new initiatives. One of the biggest efforts is to work with community colleges that can train and educate future metal workers. Community colleges, trade schools, and now high schools are also positioned to attract new operators, increasing the potential job pool.

This is, admittedly, a problem that has been ongoing for years, even decades, but that doesn’t mean it will just fade away. The effort to address workforce shortages must continue. Much like paying the energy bill, investing in the future workforce is now a fundamental part of doing business in the metal fabrication industry.

Adopting and training for technology

Technology is pervasive throughout every industry. In metal manufacturing, successful, competitive fabrication means integrating advanced technology and making it part of everyday operations. It’s no longer a luxury; technology is a must.

The specific technology varies, but it often starts with high-quality, thorough data that can be used to make better purchasing, fabrication, sales, and marketing decisions. Deep-learning AI programs, which integrate robotics into the system and can perform basic tasks like cutting and welding, will be useful for profitability. Even when they are produced in high volume, products fabricated by robots are precise and durable.

Automation will be used to drive efficiency and reduce costs. Companies need to quickly adopt this technology and train their staff to work with these complex yet time-saving machines.

Reduced efficiency, same demand

metal fabrication

Earlier, we discussed how customization is in demand, but customers also expect rapid efficiency. Unfortunately, there is an overall reduction in efficiency, caused by many of the factors we have already discussed, including workforce shortages, supply chain issues, and the need for technology training and adoption.

Customers have become accustomed to rapid delivery, but that is no longer the case. A report from The Logic Factory says that the average copper pipeline project has decreased in size by 30%. And yet, the time to market is 15% longer. Smaller orders, more time to complete. This is just one example of how production in metal fabrication and construction has become less efficient.

Demand for lightweight metals

The aerospace and automotive industries, two critical sectors for metal fabrication companies, are demanding more lightweight metals, including aluminum, titanium, and magnesium. These metals have become popular for modern transportation, aviation, and aerospace vehicles, thanks to their strength, durability, and lightweight profile.

This, too, is an ongoing problem. In 2009 there was a demand for roughly 18.7 billion tons of aluminum, according to the Aluminum Association. By 2018, this demand peaked at 28.1 billion tons. Although it dipped, it was still at 26.3 billion in 2021.

Finding material, bringing it into a facility, and meeting the demands of customers who meet lightweight metals, will continue to be an issue for metal fabricators at home and abroad.

Help for fabrication companies

Metal fabrication companies require the right tools, abrasives, adhesives, tapes, and more. Elevated provides a wide variety of readily available industrial supplies for trusted brands. We also offer coating and finishing as well as assembly tools. Plus, we have compressed air systems and services for companies in western Ohio, eastern Michigan, and South Carolina. But it’s more than just having a supply of superior products from trusted brands, Elevated has the expertise to help you meet your goals. We’re there to ensure you’re reducing overall costs, improving quality, increasing safety, and saving time.

Summer safety: recognize, treat, and prevent heat exposure

So many industries require their workforce to be in hot spaces — inside and outside. During the summer months, work across the United States, especially in the South, can be brutal. Indoors, facilities can be sweatboxes. Outdoors, temperatures sometimes climb above 100.

In other words, heat exposure can be fatal.

That’s why it’s important to understand, handle, and hopefully prevent heat exposure.

Recognizing symptoms and treating them

There are three main stages of heat exposure: heat cramps, heat exhaustion, and heat stroke. Each stage has its own set of symptoms to watch out for and suggestions for what to do when it happens.

  1. Heat Cramps
    • Symptoms: Muscle cramps (often in the legs or abdomen), heavy sweating, fatigue.
    • What’s happening: Your muscles lose essential salts and fluids through sweat.
    • What to do: Get to a cool place (with shade or air conditioning), drink water or a sports drink to replenish lost fluids or electrolytes, and rest. Try stretching cramped muscles gently.
  2. Heat Exhaustion
    • Symptoms: Heavy sweating, cold/clammy skin, dizziness, headache, nausea or vomiting, muscle cramps, weak but rapid pulse.
    • What’s happening: Your body is struggling to keep cool, and it’s starting to overheat.
    • What to do: Follow the instructions for heat cramps, but add a light snack, use wet cloths on your skin (or take a cool shower) to bring down your temperature, and elevate your feet slightly when resting.
  3. Heat Stroke
    • Symptoms: High body temperature (104°F or higher), hot/red/dry or damp skin, rapid pulse, confusion, slurred speech, unconsciousness.
    • What’s happening: This is a medical emergency! Your body’s cooling mechanisms have failed, and it can be life-threatening.
    • What to do: Call 911. While waiting for help, move the person to a cool place and reduce the temperature with ice packs. Keep an eye on their condition; you may need to perform CPR.

Preventing heat exposure

Dress for the heat

These days, there are many options that keep employees safe while preventing heat exposure.

Wear lightweight and loose-fitting safety apparel. Some suppliers have cooling vests, bandanas, washcloths, and more to keep your workforce’s core temperature down. Moisture-wicking clothing also helps reduce heat, including when your workforce is inside while it’s hot.

Outside workers should wear apparel with sun protection, sunscreen, and sunglasses. (Don’t forget to re-apply sunscreen every couple of hours, especially if you’re sweating.) Wear neck protection and wide-brimmed hats. Also, heat-reflective clothing may help keep employee’s temperatures cooler.

Stay hydrated

Drink plenty of water throughout the day, not just when you’re thirsty. Backpacks with water reservoirs and drinking tubes can ensure your workforce gets the necessary water, especially in places where water breaks are limited.

Eat light snacks throughout the day.

Plan accordingly, take breaks, pay attention, and train staff

If you can plan your workforce to avoid the heat, do so. Stop work before 10 a.m. and start again after 4 p.m. — the hottest part of the day. If you can’t schedule to avoid the heat, plan frequent breaks. Even if work is planned around the heat of the day, ensure you’re watching the temperatures to introduce breaks when needed.

Remind employees to remove their hard hats (when it’s safe) and use wet washcloths on their necks to cool down. Ask managers and other employees to check in with each other. Train your staff in the symptoms of heat exposure, how to treat it, and more importantly how to avoid it. Ensure your workforce pays attention to their bodies.

Use company policies and a support system to help prevent issues from arising.

Elevated can help your team stay safe

Sure, we have advice and ideas, but we also have safety apparel needed to keep your team safe. Contact us for a list of safety gear.

What to do about high and low compressed air temperatures

Summer can be fun — BBQs, pool parties, ice cream, and more. But facilities managers believe summer can be stressful, too. High ambient temperatures, the source of so much summer fun, can impact the overall performance of an air compressor system.

But it’s not just summer that’s a problem. Extremely low ambient temperatures, especially when they approach freezing, can also impact compressor systems.

Why air temperature matters

Higher ambient temperatures influence the amount of moisture in the system. When the air is 95 degrees Fahrenheit, for example, it holds roughly 230% more moisture than when it’s around 65 to 70 degrees. This means more moisture in the system, impacting tool performance and internal air quality.

Most air compressors must maintain an internal temperature of roughly 50 to 100 degrees. When air is extremely cold or too hot, performance lags. They can overheat or, when too cold, freeze and stop functioning, which can damage internal parts. Also, many systems rely on ambient air to stay cool. When temperatures are hot, staying cool becomes increasingly difficult.

Key factors

Altitude and “volumetric flow”

Air compressors are designed to operate at a specific volumetric airflow. However, changes in altitude will impact this air flow; the higher the altitude, the less air flows into the system. Therefore, more volumetric flow is needed to achieve the best results. We won’t bog you down with the physics and math; just know that if your facility is at a higher altitude (Denver or Albuquerque, as examples), you’ll need a stronger air compressor to achieve the same results than at close to sea level (Detroit).

Cooling methods

The cooling method for an air compressor is a significant design choice. Air-cooled compressors and dryers need thousands of cubic feet per minute of cooling air to maintain ideal operating temperatures. It all depends on the size of the system, but if your compressor room can’t bring in enough air, it may struggle to maintain performance.

If air temperatures often exceed operating temperature, you may need a water-cooled system. For instance, if your facility is in Arizona, South Carolina, Georgia, etc. where summer temperatures constantly surpass 100 degrees, the air won’t cool the compressors. (At least, not as effectively.) Therefore, a water-controlled system may be ideal.

Dirty or dusty environments

High temperatures often bring dusty conditions, which places more strain on the system. When the compressed air system operates in a dusty environment, the service intervals need to be shortened to reduce the chances of overheating, excessive operation, and low airflow. Motor greasing should be a priority, as friction can cause greater harm to the system. If your environment is dusty, take additional steps to maintain your compressors, especially when temperatures are hot.

Keeping your system cool in hot temperatures

Proper placement

Having an air compressor in the right place is critical. If you stack multiple compressors next to each other in an area with numerous other machines, they may struggle to keep a cool internal temperature. Like multiple people in a crowded room, air compressors like having enough space to stay cool and comfortable.

Ventilation

This is directly connected to compressor placement. These machines need good ventilation to work properly. Placing them where they receive enough airflow is important, and adding fans and other air-movement and ventilation sources can help. Open windows and large fans can help a compressor with ventilation.

Appropriate size

Smaller air compressors have to work harder to reach the same air volume as a larger system. This extra work can result in higher temperatures. While other factors are at play, if your system is constantly overheating, a larger compressor may be required. If a larger compressor is not possible, an additional compressor of the same size could help.

Monitoring

When it comes to keeping the system cool, diligence is key. Knowing how the system runs can make a big difference in understanding and managing the compressors. Monitoring key points, such as the compressor, dryer, and overall system, will indicate how well or poorly the components are running. Monitor information like discharge temperature, motor temperature, and system pressure so you are fully informed about what happens within the compressed air system.

Maintenance

Keep up with maintenance throughout summer (and all seasons, for that matter). Scheduled routine maintenance ensures your compressor runs better and is ready for higher ambient temperatures.

Should you purchase a water-cooled compressor?

Installing a water-cooled system is one of the most effective ways to deal with high ambient temperatures. Multiple types of water cooling are available, and they help maintain compressor discharge temperatures.

However, these systems have a higher overall cost. While the initial capital is not huge (compared to an air-cooled system), the operating costs are higher. The costs of running a water-cooled system can exceed $100,000 annually (see “Water-cooled Air Compressors”), while air-cooled systems are often less than $10,000 to operate. There is an additional expense if a cooling tower or chiller system needs to be added.

Design, installation, and service for your entire system

Proper installation is crucial for maintaining compressed air temperatures. Work with the industrial experts at Elevated Industrial Solutions, and we’ll ensure you have a system designed to handle years of hot (and cold) ambient temperatures!

From scorching summers to frigid winters, we can provide a compressed air system from Kaeser or help your current compressed air system.

Save money on your compressed air systems

Depending on the size and scope of a factory, assembly plant, or manufacturing facility, the energy bill could be over $10 million a year. For some facilities, an energy bill of $1 million isn’t unheard of.

Typically, a large portion of this bill comes from air compressors. The Department of Energy estimated that compressed air could account for roughly 10% of electricity consumed at a facility. For some locations, it could be as high as 30%.

According to a scientific review conducted by Malaysian researchers, “Only about 10–20% of total input energy is utilized for useful work in compressed-air system.” This means for every $1,000 spent on compressed-air energy, only $100 to $200 is actually used to power machines and tools.

The numbers can be complex, but the overall point is simple: running an air compressor is expensive. Therefore, you have to get the most from your system. There are many strategies for compressed air savings, including rebates and incentives from state governments.

1. Work with the right installer

Arguably, the most important step, as it impacts all other factors, is that a facility must work with the right installer to bring the highest compressed air savings. An experienced, trained, and knowledgeable compressed air installer can examine your air needs and make quality recommendations to ensure the best results. If needed, they can conduct a thorough audit of your current system.

An air systems installer can work directly with a plant manager and ownership team to make strategic recommendations and ensure successful installation. They can suggest proper equipment for longer lasting energy savings as well as design and install a system that provides maximum efficiency. Installers, especially those who have worked in your industry, will recommend the best placement for air drops, the proper size and number of air compressors, and will consider the cost and value of your system.

Also, an installation professional can recommend changes and custom engineering solutions, helping facilities overcome barriers to efficiency, such as dirty environments or complex facility layouts.

2. Ensure you have the right machines

Before a facility can begin maintenance and apply for rebates, it needs the right equipment. Proper air compressors and accessories from leading manufacturers will ensure a higher level of success, bringing better efficiency and lower costs.

The air compressors should properly match your operations. Each facility has different needs for compressed air; some only need one small air compressor, while others need multiple large-scale machines. The distance from the compressor to the use point, as well as the number of drops and types of tools in regular use, will all impact your compressor selection.

The air system, from compressor to tool, should properly match your needs. It must have the right horsepower and deliver proper cubic feet per minute (CFM) to ensure efficient air use.

Compressed air savings start with the right compressor from high-quality manufacturers like Kaeser.

3. Keep up with maintenance

Maintenance matters. Industrial facilities need proper maintenance for their compressed air systems. Maintenance uncovers issues that may cause your facility to shut down and provides opportunities to make immediate changes to run at peak efficiency.

What will a service team do? They’ll change air and oil filters, add lubricant, replace belts, inspect vents, and more. After all, preserving your compressed air system keeps costs down.

4. See your state’s energy rebates

All states, from California to Maine, provide energy rebates and incentives to private individuals and organizations. When considering energy savings, it helps to look up various incentives, especially when installing new equipment, as many programs make energy-efficient installations more affordable. Some offer down-the-road savings through tax incentives (in other words, pay for the expense now, get a big reduction on your taxes later), while others provide more immediate savings or favorable loan terms. The right compressed air service team will know these rebates well.

The Database of State Incentives for Renewables & Efficiency is among the best resources. This website enables you to find excellent rebates by searching an interactive map. You can select a state and search categories that include biomass, fuel cells, geothermal, and emerging technologies. There is also an energy-efficiency category.

There are numerous incentives for every state. Let’s look at a handful of examples from a few states.

South Carolina

In South Carolina, various programs bring financial incentives and favorable loans for energy-efficient upgrades and installations. For example, there is the Energy Efficiency Revolving Loan Fund, which provides up to $1 million for energy upgrades to commercial and industrial groups.

Ohio

Some areas provide local incentives. Cincinnati, Ohio, provides a good example. They have the Property Tax Abatement for Green Buildings program, which allows for a temporary tax abatement on commercial properties that meet LEED certification standards. This allows for a 15-year tax abatement.

Michigan

In Michigan, manufacturing facilities can take advantage of financial incentives that include the Coldwater Board of Public Utilities rebate program. This program encompasses numerous energy-efficient changes that may not be related to your air system but allow for a reduction in your energy bill. This program includes compressed air systems as well!

Call us for compressed air savings!

When it comes to the right installations, ensuring fantastic maintenance, and getting the equipment, the Elevated team can help. We make facilities more efficient, use less energy, and receive money-saving incentives and rebates! Our team will never sell compressed air systems you don’t need. And with 24/7 emergency coverage, we’re here to help you get your facility running at peak performance.

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