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American Businesses Will Spend Between
126 BILLION to 229 BILLION DOLLARS*1 In 2008 Just to Pay for POWER DISTURBANCE Problems
These numbers are staggering just by themselves. However; these numbers rise drastically when we calculate the cost of money from typical after tax profit margins from some major American companies retrieved from their financial statements. Example an American company has a ten percent after tax profit margin. With this example, to repair a POWER DISTURBANCE that caused an equipment outage of one hundred dollars ($100), it requires one thousand dollars ($1,000) in sales to pay for the equipment outage. If this margin would stay constant across all businesses the sales required to pay for POWER DISTURBANCES in 2008 for all American business would be between 1.26 Trillion to 2.29 Trillion Dollars.
POWER DISTURBANCES, poor power quality, improper bonding, grounding, electrical building protection and electrical equipment protection are causing equipment failures and outages.
How many POWER DISTURBANCES occurred in your facilities last year?
How many random equipment failures, frozen computer monitors, non-scheduled equipment restarts, static shocks, major equipment outages and failures during or after lightning strikes power surges did your company have last year?
What was your facilities cost for POWER DISTURBANCES last year?
What is your company’s after tax profit margin?
How many sales dollars does it take your company to pay for your equipment repairs from POWER DISTURBANCES each year?
Does anyone in within your company track the total cost involved with these equipment failures and outages?
Is the most common solution to the outage repair or replace the failed device bring it back on line as soon as possible and wait for the next failure?
Is the rising cost of equipment maintenance and equipment repair causing your profit margin to drop due to production being delayed?
Are increased electrical service interruptions and non-repairable electrical equipment damage becoming more normal?
Is your company considering total replacement of the electrical systems just because of increased down times?
Do non-scheduled electrical equipment expenses seem to increase each year at your facility?
Is your electrical equipment being replaced or updated by the company’s long range plan or is the electrical equipment being replaced after it continues to fail?
Are your facilities, which are wired to the current National Electrical Code, experiencing the same or similar symptoms as other facilities that may not comply with the current National Electrical Code?
These failures all come from some type of POWER DISTURBANCE. The costs of POWER DISTURBANCES are counted in billions of dollars of lost profit per year. Total POWER DISTURBANCE costs in almost all cases are accepted by managers as a cost of doing business. The instant a POWER DISTURBANCE happens, all its costs/losses are automatically incurred. These costs can only be prevented by precluding the POWER DISTURBANCE in the first place.
POWER DISTURBANCES can be broken down into four different categories.
One is a total or partial power failure; which is either a complete loss of power serving the building or a loss of one or more power phase legs serving the building.
Two is a complete loss of power within the building, an AC service panel, an individual electrical circuit or an individual electrical device.
Three is an equipment failure of an electrical device for any reason.
Four is from long term effects of poor power quality which causes an equipment failure from long-term conditions such as past lightning strikes, voltage sags, surges, transients, harmonics and phase voltage imbalances
80% of the POWER DISTURBANCE problems occur within an organization’s own electrical power infrastructure, not because of external causes. e.g., their utility power fails
72% of all American businesses are interrupted from a POWER DISTURBANCE each year.
33.7% of American companies have had business operations interrupted because of lightning storms.
45.3% of all computing and network equipment or data loss failures reported are attributed directly to POWER DISTURBANCES.
33% of all server failures are from Power Disturbances.
31% of computer outages are the result of POWER DISTURBANCES.
Computers, communication equipment, or any equipment incorporating low voltage components are extremely susceptible to voltage fluctuations. These systems experience more downtime, malfunctions, and shortened service lifetimes. They require frequent repair or replacement when the building’s power quality, bonding, grounding systems, electrical building protection, and electrical equipment protection systems are inadequate or compromised.
Electrical equipment failures and electrical outages causing down time have always been accepted by businesses as a normal cost of doing business.
The National Electrical Code does not assure a protected or reliable environment for voltage susceptible equipment. Fire codes and insurance guidelines do not assure the proper performance or reliability of voltage susceptible equipment.
Manufacturer’s have standards that deal with their individual equipment, these standards have little or no consideration given to the total building’s power quality, bonding, grounding systems, electrical building protection, electrical equipment protection, or the strain on the facility electrical load. In many cases the manufacturer’s warranty on their equipment may be void if their standards are not followed. To the best of SPGS’s knowledge every manufacturer’s repair and return center are called profit centers.
The Institute of Electrical and Electronics Engineers, Inc. have standards that are for equipment performance and equipment reliability. These standards address the total building’s power quality, bonding, grounding systems, electrical building protection, electrical equipment protection, and the actions of the facility electrical load. One of the Institute of Electrical and Electronics Engineers, Inc. standards, the IEEE Std 1100™-2005 Emerald Book, even recommends electrical surveys and evaluations be completed on many facilities every two (2) years by qualified industry recognized Subject Matter Experts (SME’s). They also remind us that certain certificates or other documents may not endorse a person as a Subject Matter Expert (SME).
New electrical equipment and buildings should be designed and commissioned by industry recognized Subject Matter Experts (SME’s) for proper power quality, bonding, grounding, electrical building protection and electrical equipment protection. Existing electrical equipment and buildings should have electrical surveys and evaluations by industry recognized Subject Matter Experts (SME’s) for proper power quality, bonding, grounding, electrical building protection and electrical equipment protection. These inspections will actually reduce the cost of doing business and increase equipment performance and reliability.
SPGS has qualified industry recognized Subject Matter Experts (SME’s) for all your electrical needs. SPGS abides by all available recognized electrical codes, standards and practices to assure that your electrical equipment stays on-line. We work within your policies and guidelines. We have a long proven historical record of increasing the life cycles of electrical equipment and reducing electrical maintenance cost. We do this by reducing or eliminating circuit card failure and total system failures. If electrical equipment failures and in house electrical equipment outages are causing production or service delays CALL SPGS at 888-219-9247 for your facilities outage solution.
*1June 2001 Consortium for Electric Infrastructure to Support a Digital Society Report, and adjusted to reflect inflation increases.
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