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I got a reminder notice in the mail last week from a company whose business is the proactive maintenance of domestic hot water heaters.<\/p>\nI got a reminder notice in the mail last week from a company whose business is the proactive maintenance of domestic hot water heaters.<\/p>\n
Now, you might be thinking: “How could anyone make a business out of that?” Well, the hot water heater in my house, like thousands of others, is a storage type – basically a tank of water heated by gas. But the steel tank has a sacrificial anode installed to protect it from corrosion and therefore extend its life.<\/p>\n
I had the anode replaced three years ago. And the letter is to remind me it is now due for inspection. But from past experience, I know the anode will be spent. The cost of a new anode is $150. What to do?<\/p>\n
If you’re responsible for keeping hydraulic equipment running, this is the sort of decision you have to make on a regular basis: do I spend a modest amount of money now to avoid an expensive disaster down the track?<\/p>\n
In the case of my hot water heater, $150 is not a life-changing amount of money. Still, it would be very easy to sit on my hands and do nothing. After all, replacing the anode will do nothing to enhance its performance; I won’t get a better shower in the morning.<\/p>\n
But that’s why it’s called proactive<\/i> maintenance. Proactive maintenance requires accurate thinking, followed by appropriate action – or in some cases, intentional<\/i> inaction.<\/p>\n
Since ignoring the reminder notice is neither of the above, some accurate analysis is required. My brother-in-law is a plumber, and he reckons if the anode is replaced every 3 to 4 years, the water heater should last at least 12. But it could rust out in as little as 6 without anode replacement. A new unit is around $1200 excluding installation. And Murphy’s Law suggests it will rust out during the Christmas holidays when my Mother-in-law wants to wash her hair. Plus, assuming I can get hold of a plumber at that time of the year, he’ll want a king’s ransom just to show up.<\/p>\n
Without factoring in the consequences of my Mother-in-law having to choose between a cold shower or a bad hair day, the numbers are not hard to crunch: without any anode replacements, assuming a service life of 6 years, then after 12 years I will have replaced two water heaters at a cost of $2400 (2 x $1200). If I replace the anode at years 3, 6 and 9 – and the complete hot-water unit at 12 years, the total cost over 12 years is $1650 ($1200 + 3 x $150).\u00a0 So I am in front by $750 ($2400 – $1650) worth having.<\/p>\n
The return on investment (ROI) is even more impressive: I have invested $450 to save $750, and ROI of 67% (750\/450 -1 x 100). I won’t get that sort of return by leaving the money in the bank.<\/p>\n
But what if my water heater doesn’t make it to the 12-year mark? Say it rusts out in 8 years. Well, based on a 6 year life without anode replacement, and a unit replacement value of $1200, each year of service life extension is worth $200 ($1200\/6 = $200).<\/p>\n
So say I replaced the anode twice at years 3 and 6 for a total cost of $300 (2 x $150) but only got 8 years out of the unit. Those 2 years of life extension are worth $400. In this case I am only $100 in front after deducting the cost of two anode replacements ($400 – $300 = $100). But even in this worst case scenario I’m still better off.<\/p>\n
So based on this analysis I feel confident that getting the anode replaced now (year 6) is a sensible proactive maintenance decision.<\/p>\n
“That’s great Brendan, but what’s it got to do with me?” I can hear you thinking. Well, if you’re a hydraulic equipment owner, or work for one, consider this your<\/b> reminder notice. What proactive maintenance decisions are you putting off or procrastinating about?<\/p>\n
Of course, as the above example illustrates, to make informed decisions in these matters you need accurate information about your hydraulic equipment. And that’s another reason to get plugged-in to the resources available at: www.HydraulicSupermarket.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" I got a reminder notice in the mail last week from a company whose business is the proactive maintenance of domestic hot water heaters. Now, you might be thinking: “How could anyone make a business out of that?” Well, the … Continue reading