How to Reduce Energy Costs in Your Industrial Compressed Air System

For many industrial facilities across Memphis, Jackson, Tupelo, Little Rock, and Springdale, compressed air is one of the largest hidden energy expenses in the building. It’s essential to production—but it’s also one of the least efficient utilities when not properly managed.

In 2026, rising electricity costs mean even small inefficiencies can quietly drain tens of thousands of dollars per year. The good news? Most compressed air systems have clear opportunities for improvement.

Here’s how facilities in the Mid-South can reduce energy costs without sacrificing performance.

Why Compressed Air Is So Expensive

Compressed air is often called the “fourth utility” in industrial operations—after electricity, water, and gas. But unlike those utilities, compressed air systems frequently operate at only 10–30% overall efficiency if not optimized.

Energy is lost through:

• Air leaks

• Pressure drop

• Oversized equipment

• Poor controls

• Excessive system pressure

Left unchecked, these issues compound year after year.

1. Fix Air Leaks First

Air leaks are the fastest and easiest way to reduce energy waste.

Even small leaks:

• Force compressors to run longer

• Increase electrical demand

• Raise operating temperatures

• Shorten equipment life

In many Mid-South facilities, 20–30% of compressed air production is lost to leaks. A structured leak detection program often delivers one of the fastest returns on investment available.

2. Lower System Pressure Safely

Many facilities run compressors at higher pressures than necessary to compensate for leaks or poor piping design.

Every 2 PSI increase in pressure can raise energy consumption by roughly 1%.

By:

• Fixing leaks

• Improving pipe sizing

• Evaluating point-of-use requirements

Facilities can often safely reduce system pressure—resulting in immediate energy savings.

3. Eliminate Pressure Drop in Piping

Improper pipe sizing and layout are common in older facilities around the Memphis industrial corridors.

Undersized or restrictive piping:

• Forces compressors to work harder

• Reduces pressure at points of use

• Encourages operators to increase system pressure

Improving pipe diameter, converting dead-end lines to loop systems, and reducing unnecessary fittings can significantly reduce energy use.

4. Upgrade to Variable Speed Drive (VSD) Compressors

Many facilities still operate fixed-speed compressors that run at full capacity—even when demand is low.

Variable Speed Drive (VSD) systems:

• Adjust motor speed to match air demand

• Reduce unloaded run time

• Lower partial-load energy consumption

For facilities with fluctuating production schedules, VSD technology can dramatically improve efficiency.

5. Maintain Proper Ventilation and Cooling

In the Mid-South climate, heat and humidity increase energy consumption.

Poor ventilation causes:

• Higher internal compressor temperatures

• Reduced cooling efficiency

• Increased run time

Keeping compressor rooms properly ventilated and heat exchangers clean reduces strain on the system and lowers energy use.

6. Maintain Dryers and Filtration Systems

Moisture and contamination reduce efficiency and increase system resistance.

Clogged filters and overloaded dryers:

• Restrict airflow

• Increase pressure drop

• Force compressors to work harder

Routine maintenance of dryers and filtration improves airflow and reduces wasted energy.

7. Perform a Full System Audit

Many facilities focus only on the compressor—but compressed air systems work as a whole.

A full system audit evaluates:

• Compressor load profile

• Pressure requirements

• Leak rate

• Piping design

• Dryer sizing

• Energy usage trends

Often, system adjustments deliver better ROI than equipment replacement.

Why Energy Optimization Matters in the Mid-South

Facilities in West Tennessee, North Mississippi, and Eastern Arkansas face:

• Long, hot summers

• High humidity

• Extended operating hours

These conditions increase strain on compressed air systems. Energy optimization isn’t just about cost—it’s about reliability and uptime.

The Cost of Doing Nothing

Ignoring inefficiencies leads to:

• Higher utility bills

• Increased equipment wear

• More frequent service calls

• Shortened compressor lifespan

Over time, wasted energy can cost more than upgrading the system.

Small Improvements Add Up

Energy reduction doesn’t require a full system replacement. Many facilities achieve measurable savings by:

• Repairing leaks

• Adjusting pressure

• Improving ventilation

• Upgrading controls

• Performing regular preventive maintenance

Incremental improvements often deliver substantial long-term savings.

Get Expert Help Reducing Compressed Air Energy Costs

Process & Power works with facilities across Memphis, Jackson (TN), Tupelo (MS), Little Rock, and Springdale (AR) to evaluate compressed air systems, identify energy waste, and implement cost-saving solutions.

📍 1721 Corporate Avenue • Memphis, TN 38132
📞 (901) 362-5500

If your compressed air system is driving up utility bills, a professional evaluation can uncover immediate and long-term savings opportunities.