DIRECTAIR^® Sets the Record Straight

Topics Covered:

• Is it more cost-effective to own or outsource your compressed air system?

• What are the risks and hidden costs of owning compressed air equipment?

• How does the DIRECTAIR® compressed air utility service reduce downtime and improve efficiency?

• What are the financial and operational benefits of using compressed air as a utility?

Concern: When my business experiences production downtown, the financial impact can be significant and exceed the uptime guarantee compensation. How does this compare to the potential savings for my business? 

DIRECTAIR^® Solution: DIRECTAIR® liquidated damage penalties are not meant to cover your production downtime/consequential damages, but rather show you our confidence in our product and commitment to your production goals. Our 99.999% proven uptime assures we will not allow you to have financial business losses. 

Concern: If I buy new equipment, then I shouldn’t experience downtime. Is that considered within the financial analysis? 

DIRECTAIR^® Solution: Owning your own compressed air system comes with the real risk of production downtime, which can be financially painful. Even new compressed air systems are subject to downtime. However, DIRECTAIR® has accumulated nearly 20 million hours of reliable operation, backed by guarantees to safeguard your business from any adverse financial consequences based on our design, monitoring and operating procedures. DIRECTAIR® transfers that risk backed with a fully guaranteed system. 

Concern: The decommissioning charge of DIRECTAIR® seems too high and may be covering some of your investment.  

DIRECTAIR^® Solution: Our decommissioning charge covers only a portion of our sunk investment. It is standard business practice to recoup at least a portion of sunk costs through a decommissioning charge if a business cancels service in the early years of a partnership. DIRECTAIR® provides the transportation, the cranes, the necessary equipment and the technical service team for the entire installation. Those tangible costs plus the labor costs to do it all equate to more than the decommissioning charges. 

Concern: I believe I can accomplish the same compressed air results myself by purchasing a whole new system.   

DIRECTAIR^® Solution: Our cash flow analysis shows that choosing DIRECTAIR® is more cost-effective. When you consider capital investments in new equipment, maintenance agreements, added personnel, PMs, parts, and repairs, the expenses add up significantly compared to paying only for the air you use with DIRECTAIR®. Additionally, owning your own system introduces risks like lack of redundancy, energy inefficiency, potential production downtime, and rental costs. Because DIRECTAIR® monitors and operates the compressed air system in real time, owning your own system would require you to hire new operators to run the system the same way that DIRECTAIR® would, further driving up the cost.   

Concern: The service and maintenance costs seem higher than my current average annual costs.  

DIRECTAIR^® Solution: Those are your costs now, with your current equipment. As your equipment ages, those costs will continue to grow with major overhauls, a new motor, cooler, air end, etc. over time. Over five years DIRECTAIR® averages out to be less than the cost of owning and maintaining your own system. Keep in mind many OEM compressor companies are now requiring extensive service agreements on their equipment to qualify for extended warranties, so for new equipment these costs will be even higher as that is where these companies make their money.   

Concern: My business and industry is unique. Does DIRECTAIR® understand the differences in industry needs?  

DIRECTAIR^® Solution: DIRECTAIR® does business with a wide variety of industries where every single one of our customers is different in what they manufacture as well as their air needs and business goals. That is why our DIRECTAIR® agreements are flexible and customized to you.  

Concern: Compressed air is critical; I am hesitant to outsource such a critical component of my production success.  

DIRECTAIR^® Solution: Your business already outsources electricity, water, internet and more than likely natural and industrial gases such as Nitrogen and Oxygen. These utilities are critical to your operations as well. Why not do the same with Compressed Air? Plus, DIRECTAIR® provides a fully guaranteed system unlike those other utilities.  

Concern: How can I justify the cost of DIRECTAIR? What are the added benefits for my business? 

DIRECTAIR^® Solution: You’re paying for the ultimate reliability and peace of mind – guaranteed compressed air service. The amount you pay per month comes with advantages your normal air compressor sales/service group does not provide. DIRECTAIR® provides:    

• Real time 24/7/365 monitoring. We guarantee no interrupted services. You also have access to a perpetual auditing system to monitor your air and energy usage.    

• Reliability. In the event the DIRECTAIR® system loses a compressor, a backup kicks on immediately and a technician is automatically dispatched to your facility. No production downtime!    

• No Capital Expenses. Our solution does not require any upfront capital.    

• Guarantee. We guarantee your air pressure, flow, and dew point 24/7, and we put our money behind our guarantee.    

• Energy savings. We provide 35-50% energy savings on additional personnel costs.  
  

Concern: How much does DIRECTAIR® cost based on my system size? 

DIRECTAIR^® Solution: Let us do a financial analysis, considering all your true costs of ownership and maintenance of your system. We believe DIRECTAIR® will have a positive financial impact for your company.   

Concern: Since I’m still responsible for electricity costs, isn’t my largest expense being overlooked? 

DIRECTAIR^® Solution: While we understand this concern, we do provide sustained energy efficiency. Along with efficiency guarantees, DIRECTAIR® provides an annual system review to help reduce compressed air costs and improve efficiency.   

Concern: If I buy a new compressor, will it significantly reduce my service and electricity costs, making the current service costs less relevant? 

DIRECTAIR^® Solution: You will realize service and power efficiency savings with all new equipment, but only for a short period of time. You can count on those costs to increase over time as the equipment ages. However, this still does not get you the 100% Guaranteed Uptime the DIRECTAIR® system provides by monitoring and controlling your system 24/7/365 ensuring the maximum energy efficiency and reliability every minute of every day.