Metal Fabricator Eliminates Production Delays, Saves $67K Annually

The Challenge

A 66,000 sq ft precision metal fabrication shop in Sacramento operates state-of-the-art laser cutting equipment 24/7. Their business depends on consistent, high-purity nitrogen for:

• Fiber optic laser cutting (up to 1" mild steel)
• CO2 laser precision cutting (0.5" stainless)
• Clean, oxidation-free cuts for aerospace components
• Minimal downtime for just-in-time production schedules

The delivered nitrogen problem:

• Unpredictable deliveries: 2-3 day delays common, sometimes longer
• Emergency costs: Rush deliveries at 3x normal rate
• Production delays: Average 4 hours/month waiting for nitrogen
• Storage space: 12 cylinders on-site taking valuable floor space
• Safety concerns: Frequent cylinder changes, handling risks
• Annual cost: $91,800 for delivered nitrogen

“We were held hostage by the delivery schedule. When they’re late and you’re cutting aerospace parts on a deadline, you have no choice but to pay whatever they charge for emergency delivery.”

— Plant Manager

Our Measurement-First Approach

We installed monitoring equipment to track actual consumption during typical and peak production periods:

30-day data logging revealed:

• Peak demand: 142 SCFM (all lasers running, maximum thickness cutting)
• Typical demand: 95 SCFM (normal production mix)
• Weekend shifts: 78 SCFM (reduced crew, thinner materials)
• Purity requirements: 99.5% minimum for quality cuts
• Pressure needs: 120-150 PSI at lasers

Critical insight: Demand was remarkably consistent (±15%) despite 24/7 operations, making on-site generation ideal.

The Right-Sized Solution

Based on measured data, we designed a system optimized for their specific needs:

• Primary generator: 150 SCFM PSA system (99.9% purity)
• Backup capacity: Built-in redundancy, cylinder emergency connection
• Pressure optimization: Integrated dryer and filtration
• Smart monitoring: Real-time alerts, predictive maintenance
• Purity verification: Continuous monitoring for quality control

Investment: $82,500 installed

• Operating cost: $24,700/year (electricity, maintenance)
• vs. Delivered nitrogen: $91,800/year
• Annual savings: $67,100/year

Results & ROI

Financial Impact:

• Operating savings: $67,100/year
• Eliminated emergency delivery fees: ~$8,000/year
• Total annual benefit: $75,100
• Payback period: 13 months (including emergency cost elimination)
• 5-year savings: $293,000

Operational Benefits:

• Zero production delays due to nitrogen shortage (14 months operation)
• Eliminated delivery scheduling and coordination
• 150+ sq ft floor space reclaimed (removed cylinder storage)
• Reduced handling safety risks
• Consistent cut quality with verified purity

Reliability Metrics:

• 99.8% system uptime
• Zero unplanned shutdowns
• Predictive maintenance prevents issues
• Backup cylinder connection never needed (but available)

The Production Impact

Before: Delivered Nitrogen

• 4 hours/month average downtime waiting for delivery
• Emergency deliveries 2-3 times/quarter
• Production schedule flexibility limited by nitrogen availability
• Quality concerns with cylinder aging/contamination

After: On-Site Generation

• Zero downtime from nitrogen shortage
• No emergency delivery costs
• Production runs on schedule, not delivery schedule
• Consistent purity for aerospace-grade quality
• Capacity to take on additional laser equipment

Key Insight: Hidden Costs of Delivered Nitrogen

Beyond the direct cost savings, the facility discovered hidden benefits:

• Labor: 2 hours/week saved on cylinder management and deliveries
• Quality: Zero rejected parts due to contamination (was 2-3/month)
• Flexibility: Can accept rush orders without nitrogen concerns
• Growth: System sized for 30% expansion capacity

Key Takeaway

“We thought delivered nitrogen was cheaper than buying a generator. But when you factor in emergency deliveries, production delays, and the stress of wondering if the truck will show up, on-site generation was a no-brainer. Should have done it years ago.”

— Operations Director, Sacramento Metal Fabricator

Industry: Precision Sheet Metal & Laser Cutting Location: Sacramento, CA System Type: PSA (Pressure Swing Adsorption), 99.9% purity Installation: Q2 2024

Is delivered nitrogen costing you more than you think?

Most metal fabricators focus only on the cylinder cost and miss:

• Emergency delivery premiums
• Production delays and lost revenue
• Labor time managing deliveries
• Quality risks from contamination
• Floor space wasted on cylinder storage

Free assessment includes:

• 30-day consumption measurement during production
• Peak demand analysis (all equipment running)
• Purity and pressure requirement verification
• Total cost of ownership comparison
• ROI calculator with your actual numbers

Schedule Your Free Assessment or call (916) XXX-XXXX