Episode 30: Cutting Costs in Compressed Air Systems

Jason Reed

Alright, welcome back to The Big Dog Podcast—episode 30! I’m Jason Reed, here with Lisa Saunders, and today we’re talking about something that’s, honestly, draining way too many budgets—inefficiencies in compressed air systems. Lisa, you wanna kick us off?

Lisa Saunders

Yeah, let’s get right into it. So, here’s a number that always blows my mind: U.S. plants waste up to $3.2 billion a year—billion with a B—just from leaks in compressed air systems. And, depending on who you ask, leaks can account for, like, 30 to 50 percent of total air loss in a typical plant. That’s not just a little hiss in the background, that’s money flying out the door.

Jason Reed

Yeah, and it’s not just the big, obvious leaks either. Sometimes it’s a tiny eighth-inch hole, and that alone can cost a plant almost four grand a year. I mean, you’d never just leave a faucet running in your house, right? But in a lot of plants, that’s basically what’s happening—just with air instead of water.

Lisa Saunders

Exactly. And, you know, I was at this facility in the Midwest—this was, what, last year?—and they were running their system at way higher pressure than they actually needed. We did a quick walk-through, and I asked, “Why are you running at 120 PSI when most of your tools only need 90?” They just shrugged and said, “That’s how we’ve always done it.” So, we dialed it back, and, no joke, their energy bill dropped by thousands within a month. Sometimes it’s that simple.

Jason Reed

That’s the thing—people crank up the pressure because they think it’ll solve every problem, but all it really does is make leaks worse and burn more energy. And, like, as we talked about in that episode on duty cycles, you gotta match your system to what you actually need, not just what feels safe or easy.

Lisa Saunders

Right. And fixing leaks and setting the right pressure, that’s always the first step. You can’t optimize anything else until you get those basics under control. It’s not glamorous, but it’s where the real savings start.

Jason Reed

Yeah, and honestly, if you’re not checking for leaks and you’re not looking at your pressure settings, you’re just leaving money on the table. It’s like, why even bother with the fancy stuff if you’re missing the basics?

Lisa Saunders

So, let’s talk about some of those “fancy” things—or, well, not fancy, but low-cost wins that people overlook. Maintenance is a big one. There’s research out there showing you can cut maintenance costs by up to 70% just by being proactive. That’s not a typo—seventy percent.

Jason Reed

Yeah, and I see this all the time. I remember this one plant manager—super sharp guy, but he was using compressed air to blow dust off everything, like it was a leaf blower. I had to step in and say, “Look, you’re not just wasting air, you’re making the compressor work overtime and, honestly, it’s not even safe.” Switched him over to a vacuum system for cleaning, and suddenly, their air demand dropped, and the maintenance team was a lot happier. Sometimes you gotta challenge those habits, you know?

Lisa Saunders

Totally. And that’s what they call “artificial demand,” right? Using more air than you actually need, or using it for stuff that doesn’t make sense. It’s like running your car engine just to charge your phone. There are better ways.

Jason Reed

Yeah, and don’t forget about automatic valves. If you’re running a single shift and you leave the compressor on overnight, you’re just feeding leaks for no reason. Install some automatic shutoff valves, and you can save up to 30% on energy costs. That’s huge for something so simple.

Lisa Saunders

And, honestly, just sticking to the basics—checking oil, changing filters, doing regular startup checks, drawing oil samples for warranty—those things add up. Not only do you save on energy, but your equipment lasts longer, and you avoid those catastrophic failures that cost a fortune.

Jason Reed

Yeah, and it’s not just about saving money, either. It’s about safety, air quality, uptime—all the stuff that keeps a plant running smooth. Like, if you’re not maintaining your system, you’re just waiting for something to go wrong. And when it does, it’s never at a good time.

Lisa Saunders

Exactly. And, you know, we’ve talked before about how maintenance ties into warranty and reliability. It’s all connected. If you want to cut costs, start with the stuff you can control—maintenance and smart usage. The rest gets a lot easier after that.

Jason Reed

Alright, so let’s go a little deeper. Once you’ve got leaks, pressure, and maintenance dialed in, there’s still more you can do. Heat recovery is a big one. Most people don’t realize that over 90% of the energy going into a compressor comes out as heat. And, depending on your setup, you can recover up to 96% of that. That’s not just a little bonus—that’s real money back in your pocket.

Lisa Saunders

Yeah, and it’s not just for heating the plant, either. You can use that recovered heat for pre-heating boiler water, process heating, even water heating in some cases. I mean, why pay for heat twice when you’re already generating it as a byproduct?

Jason Reed

Exactly. And, honestly, a lot of folks don’t even know what their system is capable of until they bring in an expert. That’s where professional audits come in. I know we’ve mentioned audits before, but it’s worth repeating—having someone who knows what to look for can find stuff you’d never notice on your own.

Lisa Saunders

Yeah, I was just thinking about that Kaishan USA audit we did for a food plant last quarter. They thought their system was running fine, but the audit found a bunch of little inefficiencies—pressure drops, moisture issues, even some air quality problems. We fixed those, and not only did their energy use drop, but their product quality actually improved. Sometimes it’s the small stuff that makes the biggest difference.

Jason Reed

And it’s not just about saving money, either. A good audit can help you avoid downtime, extend your equipment’s life, and make sure you’re getting the air quality you need—especially if you’re in a sensitive industry like pharma or food. Plus, when you work with a local distributor or someone who really knows your application, you get that extra layer of support. They’re not just selling you a compressor—they’re helping you run your business better.

Lisa Saunders

Yeah, and honestly, that’s what it’s all about. You don’t have to spend a fortune to get big results. Start with the basics, look for those low-cost wins, and don’t be afraid to bring in an expert when you need one. The savings are real, and they go straight to your bottom line.

Jason Reed

Alright, I think that’s a good place to wrap it up for today. If you’re looking to cut costs in your compressed air system, start with leaks, pressure, and maintenance, then look at heat recovery and get a pro to audit your setup. It’s not rocket science, but it does take a little effort.

Lisa Saunders

And if you want more tips, check out our previous episodes—we’ve covered everything from weatherproofing to lean manufacturing. We’ll be back soon with more ways to keep your plant running smarter, not harder. Jason, always a pleasure.

Jason Reed

You too, Lisa. Thanks for listening, everybody. Catch you next time on The Big Dog Podcast.