By Wayne Rose of the British Pump Manufacturers Association (BPMA)
When it comes to purchasing industrial equipment, few principles appear more straightforward than getting the best price. Yet when applied to pumping systems, an excessive focus on initial purchase cost can ultimately prove to be a false economy.
The reason is simple: the purchase price of a pump is often only a small part of its total cost over its operational lifetime. Energy consumption, maintenance, downtime, replacement components and eventual disposal can all contribute significantly to the overall cost of ownership.
With commerce and industry under increasing pressure to reduce both operating costs and carbon emissions, it is time to look beyond the initial quotation and consider what a pumping system will actually cost throughout its working life.
The real cost of pumping
Pumps are often expected to operate continuously, sometimes for many years. Even relatively small differences in efficiency can therefore translate into substantial differences in energy consumption over time. This makes the selection of a pump fundamentally different from purchasing a commodity, where the lowest initial price may reasonably represent the lowest overall cost.
A pump that costs less to purchase but consumes more energy can quickly become considerably more expensive than a higher-efficiency alternative. The same applies where cheaper equipment requires more frequent maintenance or has a shorter operational life.
The challenge is that these costs are not always visible at the point of procurement.
Capital expenditure is immediate and easy to compare. Energy consumption and maintenance costs accumulate gradually over years. As a result, procurement decisions can unintentionally prioritise what is easiest to measure rather than what matters most over the asset’s lifetime.
Whole-life costing changes the conversation
Adopting a whole-life costing approach provides a more complete picture. Rather than asking simply, “How much does this pump cost?”, purchasers should be asking questions such as:
- How much energy will it consume?
- What maintenance will it require?
- How long is it expected to operate?
- What will happen if it fails?
- How readily are replacement components available?
- Can its performance be optimised as operating conditions change?
- What is its expected residual or refurbishment value?
These considerations can transform the economics of a purchasing decision. But most importantly, whole-life costing does not necessarily mean selecting the most expensive equipment. It means identifying the solution that provides the most appropriate balance of purchase cost, performance, reliability, energy consumption and maintainability for the particular application.
Efficiency starts with the system
It is also important not to view pump efficiency in isolation. A highly efficient pump can still consume excessive energy if it has been incorrectly sized or is operating significantly away from its optimum duty point. Conversely, an appropriately selected pump, combined with effective system design and variable speed control where appropriate, can deliver significant operational savings.
This is why pump selection should be considered as part of the wider system rather than as an individual component. Understanding the actual duty requirements, flow profile and operating conditions is essential. So too is recognising that those requirements may change during the lifetime of the installation.
A procurement process that considers these factors from the outset is far more likely to deliver a system that remains efficient throughout its operational life.
Procurement needs to evolve
None of this is an argument for ignoring capital cost. Budgets matter, and responsible procurement must always demonstrate value for money. But value and price are not the same thing.
For organisations operating hundreds or thousands of pumping assets, relatively small improvements in efficiency, reliability or maintenance requirements can have a substantial cumulative impact. The potential financial and environmental benefits therefore extend well beyond the individual pump purchase.
The pump industry now has an opportunity to make whole-life value a much more prominent part of procurement decisions. That requires closer collaboration between end users, consultants, contractors, manufacturers and distributors, with performance and lifecycle information considered alongside the initial quotation.
A better definition of value
Moreover, the sector has an important role to play in helping customers understand the economics of their equipment and providing the information needed to make informed decisions. But ultimately, this is about changing the question being asked at the beginning of the procurement process. Instead of asking “Who can supply this pump at the lowest price?”, perhaps the more appropriate question is:
“Which solution will deliver the greatest value throughout its working life?”
That shift in thinking could make a significant difference – not only to the operating costs of UK industry and infrastructure, but also to the energy and carbon associated with pumping. The cheapest pump to buy is not necessarily the cheapest pump to own, and in an increasingly energy-conscious economy, that distinction has never been more important.
For further information on the work the BPMA undertakes on behalf of the pump industry across the UK and Ireland, visit the website www.bpma.org.uk.
