Compressed air is often called “the fourth utility” in industrial operations, and like the other three utilities — water, electricity and gas — wasting air can have expensive consequences.
The damage done by compressed air leaks is often misunderstood and underestimated. What may seem like a simple bit of air escaping can lead to thousands of dollars each year in energy costs, reduced equipment efficiency, maintenance issues and production downtime. Surprisingly, even as most companies are striving to improve the sustainability of their operations and reduce emissions, air compressor leaks are one of the most overlooked sources of energy waste.
The U.S. Department of Energy estimates that 20%-30% of a facility’s compressed air is lost to leaks. This creates a chain reaction of unintended consequences that can affect a company’s operations.
Whether you’re operating in manufacturing, food and beverage, pharmaceutical, or general industrial sectors, compressed air leaks can impact productivity and profit. Facilities dealing with air loss may experience:
- Pressure drops that reduce equipment efficiency and cause machines to underperform
- Shortened compressor lifespans due to the excess cycling of compressor components
- Higher maintenance costs
- Increased repairs
- Production downtime due to equipment issues
Leaks can drain thousands of dollars per year, especially as energy prices rise. Here’s what a facility could be looking at depending on the size of the leak, based on calculations from the U.S. D.O.E’s compressed air resources, with updated 2025 electricity rates:
- 1/64-inch leak → ~$58/year
- 1/32-inch leak → ~$244/year
- 1/16-inch leak → ~$985/year
- 1/4-inch leak → ~$15,700/year
Digging deep to find leaks
Leak detection should be part of a facility’s routine maintenance operations — and not only reserved for when problems arise. Identifying and fixing leaks before they worsen leads to long-term savings and optimized operations.
“Companies with plants in Detroit, Grand Rapids, Lansing, or across Michigan should approach leak detection with a full-system mindset,” Kevin Sundstrom, Director of Sales. “They should go beyond the leak to understand how the entire compressed air system is performing, approaching leaks not only as isolated issues but as deeper system inefficiencies.”
Partnering with an air compression distributor can help a company uncover leaks during service visits. They can assess the health of the entire compressed air system. Most have technical field specialists who are trained to spot energy-wasting issues.
“The best way to accomplish this is by working with a company like Michigan Air Solutions to schedule an air audit,” Kevin Sundstrom.
What an air audit includes
Air audits help customers identify problems, quantify losses and help plan repairs or upgrades. Technicians utilize a variety of methods in these air audits:
- Leak detection utilizes visual inspections and ultrasonic tools to detect leaks throughout the system, such as through hoses, fittings, valves, drains, etc. It also includes soapy water testing to quickly and effectively confirm leaks around fittings and hoses.
- Pressure and flow logging make use of temporary or permanent sensors to log real-time system behavior. The goal is to identify fluctuations, patterns and possible leaks through demand and loss anomalies.
- System mapping entails technicians documenting air compression systems and how they operate. This could include compressor layouts, piping routes and accessory components to discover air bottlenecks for inefficiencies.
- Usage profiling evaluates when and how compressed air is consumed, such as during peak shifts, high-demand processes or duty-cycle operations. Technicians work to detect oversizing or pressure setpoint issues.
- Accessory and piping reviews look at filters, dryers, receivers, drains, regulators and more to ensure they are sized correctly, working efficiently and maintaining pressure.
- Compressor performance reviews look specifically at a facility’s air compressor units and study their cycling frequencies, load/unload behaviors and energy use
relative to output.
Learn more about comprehensive air assessment services.
Stopping leaks the MAS way
It’s important to consistently monitor for leaks in compressed air systems. They are rarely a one-and-done problem. Companies should work with air compressor partners to assess total system health.
“Many Michigan businesses across sectors struggle with maintaining internal compressed air expertise due to employee turnover or limited engineering resources,” Kevin Sundstrom. “That’s where a partner like Michigan Air Solutions provides long-term value — keeping systems efficient and stable over time.”
A proactive air compression partner can help companies purchase the air compressor equipment, helping them decide what type of compressor (such as oil-free or oil-flooded), its proper size (CFM and PSI), a proper system to support it (valves, hoses, drains, filters, fittings), and of course, the ability to keep it effectively running over the long term.
Our team supports facilities throughout Michigan with full-system design, installation, and long-term maintenance. Whether you need an upgrade, a service plan, or temporary support, we’re here to help.
“Compressed air leaks add up faster than you think. But with the right partner, they’re one of the easiest problems to solve,” Kevin Sundstrom. “Don’t let leaks drain your budget.”
