When purchasing a new air compressor, you need to know the total lifetime costs of each option. While the initial investment is a valid starting point, there are several other factors to consider.
By calculating the Life Cycle Costing of an air compressor, you will know exactly how much this investment will cost your business, now and later.
In this article, we explain what Life Cycle Costing is, how to calculate it, and how to choose the best air compressor for your application.
What is life cycle costing (LCC)?
The concept of air compressor life cycle cost, or LCC, is a tool for evaluating and comparing different systems and products. With compressed air systems, LCC will help you assess various options and the total investments.
While LCC may not anticipate unforeseen costs or accommodate business expansion, it is an invaluable framework for making well-informed decisions about the best air compressor for your company.
How to calculate Life Cycle Cost
To calculate the total life cycle cost of air compressors, we recommend using one of two formulas:
Formula 1:
Initial Investment + Lifetime Maintenance Costs + Lifetime Energy Costs = Total Life Cycle Costs
Initial investment and installation
Industrial air compressor pricing ranges significantly, depending on the quality and type of machine. While you may be tempted to choose a cheap air compressor, this will generally cost more over time. Generally, it’s worth investing more upfront to gain a reliable, energy-efficient, and low-maintenance model.
Fixed-speed air compressor pricing
For reference, PneuTech RSCR fixed-speed compressor prices range from $724 to $884 per kW up to 135 kW models, and $640 to $690 per kW for larger models. Remember to include any installation costs, such as electrical wiring, air and water piping, and foundation requirements.
Variable-speed air compressor pricing
For variable-speed compressors, like the PneuTech RSCR range, trade prices generally range from $1,115 to $1,340 per kW up to 55 kW models and $925 to $1,090 per kW for larger models.
Maintenance costs
Maintenance costs for air compressors can vary significantly, depending on the type and quality of the machine. These costs include the labour and replacement parts for any regular maintenance routines, as well as the cost of any downtime during breakdowns. Altogether, this can add up to a large sum.
When choosing your air compressor, check the manufacturer's prescribed service intervals and component lifetimes. This will determine how frequently the machine needs checking, cleaning, and repairing. To minimise breakdowns and maximise your compressor’s lifespan, we highly recommend opting for an air compressor service plan with reliable and local technicians.
Runnings costs and energy use
An energy-efficient air compressor will bring substantial annual savings on electricity costs. These savings can offset the initial purchase price within a few months, also providing ongoing benefits in the long run. By the end of its lifespan, these energy savings may even cover the full purchase cost.
Formula 2:
To use this formula, you need kilowatts, running time, electricity costs, and motor efficiency. The cost of compressed air per CFM can be calculated with this formula:
KW x hours x rate / (motor efficiency)
Cubic feet per minute (CFM) measures the output rate of an air compressor. With insufficient flow, the compressor will require downtime to rebuild pressure in the reserve tank. Calculating CFM is important for evaluating compressor performance, troubleshooting, system optimisation, and capacity planning.
Compressed Air NZ
Here at Industrial Air Systems, we supply the world-renowned PneuTech range, known for its durability and reliability under pressure. From the Vixen integrated air compressor to the more heavy-duty variable-speed drive permanent magnet compressor, we’ve outlined all the product specifications and pricing below.
Vixen integrated air compressors
The PneuTech Vixen permanent magnet screw compressors boast the lowest lifetime costs when compared with equivalent models. When air demand varies throughout the day, these compressors only use the air required at that time. This results in significant savings — as high as 60 per cent in some cases!
- Available in 7.5kW, 11kW and 15kW.
- Mounted on air receivers.
- Variable-speed permanent magnet stop/start technology.
Pricing
The starting price for the 7.5kW Vixen model is $8,890 +GST. Please note, you may require a refrigerated dryer and filtration for moisture removal. This is part of our “plus” package (compressor, refrigerated dryer and pre-filter) with a starting price of $10,980 +GST.
Permanent magnet compressors
The PneuTech range of PM variable-speed air compressors is ideal for heavy-duty industrial and factory environments with constant air demand. This range brings substantial energy savings and can lower your electricity bill by up to 40 per cent.
- Variable-speed drive technology.
- Reduced wear-and-tear.
- Accurate air supply to demand, with as little as 120 seconds of turn-down time.
- Available in seven different models, from 22kW to 90kW.
Pricing
The starting price for a 22kW PM variable-speed compressor is $21,390 +GST. Some customers like to add our plus package, including a compressor, vertical receiver, refrigerated dryer and pre-filter with a starting price of $25,490 +GST.
All compressed air systems we supply are bespoke to the customer’s needs. For an accurate estimate based on your business, get in touch with us to request a quote. We can specify the model and size of the compressor that will best match your compressed air requirements and will also advise on any additional equipment.
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