Compelling Capital Cost Savings: AHU Refurbishment vs. Replacement
Published August 29, 2016, by Christine Parrington
Effective capital planning is an essential part of any organization’s short and long-term strategic goals. A comprehensive capital plan serves as both a virtual road map for identifying and assessing existing capital assets, and as the primary vehicle that drives decision making for all capital spending. Prioritizing needs and spending wisely, however, can often present a challenge to Facilities Management teams trying to do as much as they possibly can with their limited piece of the pie. Sound familiar? Take air handler replacement, for example, which is a significant capital expense. What if you could potentially save millions in your budget by refurbishing your facility’s air handling units to like-new condition instead of replacing them? One AQUIS customer did just that and ultimately saved $9.4 Million in capital dollars.
Case in point: One hospital in New York City was faced with the problem of having dozens of decades-old air handling units all suffering similarly from years of wear and constant use. Built in 1972, the hospital had 52 original air handlers still in operation but struggling to keep up due to their age. Since hospital AHUs run 24/7 under heavy demand, time was a luxury this hospital didn’t have, and replacing all of the air handlers was both financially and logistically impossible. The hospital’s Facilities and Capital Projects teams had a limited AHU replacement budget, so they decided to focus first on replacing four (4) air handlers. They were dismayed to learn, however, that replacement costs for just four air handlers would exceed $1 Million. This realization, coupled with the fact that there were still 48 other AHUs that needed to be addressed sooner rather than later, prompted them to seek out an alternative solution – they called AQUIS. Through refurbishment with AQUIS, the hospital’s capital cost savings for the initial project was so compelling that they decided to have AQUIS refurbish all 52 air handling units. The Financial Analysis for the initial project can be found on this page, but it’s worth underscoring that in the end, the hospital saved $9.4 Million in capital dollars by refurbishing all of the air handlers through AQUIS instead of replacing them.
If your Facilities Management team is faced with the common dilemma of having limited funds and resources to fully and properly address efficiency improvements and equipment upgrades like AHU replacement, AQUIS can help. Since most major capital projects, like the replacement of air handling units, are typically done in phases due to the exorbitant associated costs, refurbishment is an ideal solution that will save you both time and money with virtually no impact to daily operations. With each fiscal year bringing the perpetual struggle between spending, saving, and how to do both in the best and most efficient manner possible, AQUIS can be part of the solution to restore your air handlers and save you from the staggering costs of replacement. Here’s what one customer had to say about AQUIS:
“There’s a lot of possibility out there for a solution like AQUIS. Not only do they continue to exceed my expectations, but I wish I had more business partners like them. The AQUIS installation teams are of the highest caliber and very professional. When they show up for a project they are in and out, and next to no one even knows they’re here working. We have saved a lot of money by refurbishing our air handlers with AQUIS, and we look forward to working with them again soon on other projects.”
-Devin Hugie, Director of Facilities
Children’s Hospital of Orange County (CHOC)
Get in touch with us today to see what AQUIS can do for you.