ITA’s Committee for Industrial Applications Hosting Life Cycle Costing Session Demonstrating True Long-Term Value of Titanium
Life cycle costing has long been put forth as a favorable metric to demonstrate titanium’s “good value” as a material of choice in a host of industrial applications. However, despite the math and logic that supports the use of titanium compared with competing materials, industry executives admit that this argument, despite its merits, falls short. In some cases, titanium is passed over due to short-term budget constraints for so-called “less-expensive” metals. It’s fair to say titanium’s durability and affordability as a long-term investment for infrastructure or industrial projects simply doesn’t convince everyone.
Barry Benator is looking to address that entrenched mindset and will provide titanium executives and sales representatives the tools they need to make a more convincing case to win business. Benator, the founder and president of Benetech Inc., Roswell, GA, a leadership and management consulting and training firm serving clients throughout the United States and internationally, produces an online seminar on life-cycle costing for the energy industry, and now looks to impart that knowledge to the titanium sector.
ITA has organized a ½ day session at the upcoming TITANIUM USA 2015 conference and exhibition to be held this October 4th – 7th in Orlando, Florida USA. Barry wants to give the titanium industry the “ammunition” it needs to prove to potential customers how and why titanium can be a more affordable investment over the long term, even if there is an initial, higher “up-front” price tag compare with other metals.
Simply put, Benator defines life-cycle costing as a calculation to determine the long-term payback for an investment, taking into account the savings and cost over the entire life of a product or system. “The basic idea is: do I spend a bit more now to get a better system for the long haul,” Benator explained. “Customers are always concerned about their return on investment. A lot of this is intuitive, but some people have to understand it and ‘see’ it before they truly believe it. I try to put together the rationale behind the numbers.”
Businesses and governments make important decisions based on financial benefits (and risks) to their organizations. For industrial projects like desalination installations, heat exchangers, and chemical or food processing, factors such as annual maintenance costs, reliability, production speeds and long-term performance come into play. And of course, material costs are factored into the front end of the equation. Benator said his course will provide ITA members with practical tools to help explain and prove the financial benefits of titanium, especially when the application calls for corrosion resistance and high strength. The course will focus on sound financial comparisons of the strength, durability and other benefits of titanium.
Rob Henson, Manager, Business Development for
VSMPO Tirus US is the 2015 Chair of the ITA Committee for Industrial Applications.