Episode 38: Uncovering Artificial Demand

Jason Reed

Welcome back to The Big Dog Podcast! I’m Jason Reed, and I’m here with Lisa Saunders. Today, we’re getting into a topic that, honestly, trips up a lot of folks on the shop floor—artificial demand. Lisa, you wanna kick us off?

Lisa Saunders

Yeah, let’s do it. So, artificial demand—if you haven’t heard the term before, it’s basically anything that isn’t an authorized use of compressed air. We’re talking leaks, running your header pressure too high, or, you know, those little shortcuts people take—like blowing dust off their clothes at the end of a shift. It all adds up.

Jason Reed

And I think a lot of people still buy into this myth that compressed air is free. I mean, I get it—air’s all around us, right? But once you start compressing it, running those machines, paying for the energy, it’s anything but free. Every unauthorized use is just money out the door. And it’s not just about the cost, either. It messes with your whole system planning. If you don’t know about it, you can’t manage it, and you definitely can’t fix it.

Lisa Saunders

Exactly. And the thing is, artificial demand is sneaky. It’s not designed into your system, so nobody’s really tracking it. It’s just this hidden waste that throws off your numbers. Like, did your air consumption actually go up last month, or did someone just start using air for something off the books?

Jason Reed

Oh, I’ve got a story for that. Years ago, I was working with a plant where the monthly air bill suddenly spiked. Everyone was scratching their heads, thinking maybe a machine was failing or something. Turns out, one of the maintenance guys had rigged up a little blower to clean his work clothes before heading home. He thought it was harmless, but that “innocent” habit was costing the plant hundreds every month. It’s those little things that add up fast.

Lisa Saunders

That’s such a classic example. And it’s not just about the money, either. If you’re not tracking these uses, you can’t optimize your system. You’re basically flying blind. So, recognizing artificial demand in all its forms—leaks, high header pressure, unnecessary uses—is the first step to getting control of your compressed air costs.

Jason Reed

Yeah, and as we’ve said in past episodes, if you don’t know what’s really going on with your air, you’re just guessing. And guessing is expensive. So, let’s dig into the biggest culprits—starting with leaks and header pressure.

Lisa Saunders

Alright, so leaks. This is the big one. According to Compressed Air Best Practices, the average system loses between 30 and 50 percent of its air to leaks. I mean, that’s wild. And in some cases, it can be even higher—like, up to 80 percent if you’ve got a quarter-inch leak at 100 PSIG. That could cost you anywhere from $8,000 to $17,000 a year, depending on your energy rates. That’s not pocket change.

Jason Reed

No, it’s not. And leaks can come from just about anywhere—loose fittings, worn hoses, bad valves, you name it. Even end-use equipment can leak. And let’s be honest, hoses and pipes are gonna leak eventually. But that’s no excuse to ignore it. If you’re not checking for leaks, you’re just burning cash.

Lisa Saunders

And it’s not just leaks. Running your header pressure too high is another big pitfall. A lot of plants crank up the pressure when they see a drop at the far end of the line, thinking it’ll solve the problem. But all that does is waste energy, make leaks worse, and cause your compressors to cycle on and off way more than they should. That’s a recipe for extra wear and tear, overheating, and a shorter compressor life.

Jason Reed

Yeah, and I always say—your header pressure should be set just high enough for your highest-need tool. Most shops can get by with 90 PSIG, unless you’re running something like a sandblaster. But I see places running at 110, 120 PSIG, then using regulators to bring it back down for every tool. That’s just throwing energy away. And every time you bump up the pressure, you’re making every leak in the system worse. More air escapes, and the leaks get bigger over time.

Lisa Saunders

And here’s the kicker—sometimes, raising the pressure actually makes your pressure problem worse. There’s this inverse relationship between pressure and flow, so when you increase the pressure at the compressor, you can actually end up with less flow at the end of the line. I saw a case where a client dropped their header pressure by just 7 PSIG, and they saved almost $3,000 a year in energy costs. That’s a super easy win that a lot of plants overlook.

Jason Reed

Yeah, and if you’re seeing a pressure drop, it’s usually a flow issue, not a pressure issue. So, before you reach for that pressure adjustment, check for leaks, check your piping, and make sure you’re not just masking a bigger problem. And if you’re not sure, get a pro in to audit your system. It’s worth it.

Lisa Saunders

Absolutely. And if you missed our episode on getting pressure “just right,” go back and give it a listen. We dig into this in a lot more detail. But for now, let’s talk about those unnecessary uses—the ones that really sneak up on you.

Jason Reed

Yeah, so, unnecessary uses. This is where things get a little wild. I’ve seen everything—people using compressed air to cool down products, clean up their workspace, or even just to cool themselves off on a hot day. I mean, I get it, but that’s not what compressed air is for. And every time you use air for something it wasn’t designed for, you’re warping your system planning and racking up costs you didn’t budget for.

Lisa Saunders

And a lot of the time, it’s just because people don’t know there’s a better way. Like, instead of opening a valve to blast out water, you could use a zero-loss drain. Or swap out compressed air for a fan if you’re just trying to cool something down. There are tech solutions for almost every rogue habit out there—you just have to look for them.

Jason Reed

Yeah, and I’d say, before you start pointing fingers, ask yourself—what’s really an authorized use in your plant? What’s your team doing with air that’s off the books? Sometimes it’s just habit, or “that’s how we’ve always done it.” But those habits add up. And if you’re not sure what’s legit, lean on your local distributor or get Kaishan’s trained techs in there. They know how to spot the hidden waste and help you root it out.

Lisa Saunders

That’s the key—don’t try to go it alone. Local distributors and factory-trained techs can help you find leaks, set your pressure right, and spot those maverick uses that are costing you money. And they’re not just there to sell you a compressor—they’re there to build a relationship and help your business succeed. So, if you’re serious about cutting artificial demand, get some expert eyes on your system.

Jason Reed

Alright, I think that’s a good place to wrap it up for today. Artificial demand is one of those things that’s easy to ignore, but it’ll bite you if you let it. Take a hard look at your system, question those “innocent” uses, and don’t be afraid to ask for help. Lisa, anything else before we sign off?

Lisa Saunders

No, I think that covers it. If you’ve got questions or want to dig deeper, reach out to your local Kaishan distributor or check out our previous episodes for more tips. Thanks for listening, Jason—always a pleasure.

Jason Reed

Same here, Lisa. We’ll catch you all next time on The Big Dog Podcast. Take care, everybody.