Kaeser Compressors. The U.S. Department of Energy estimates that air compressors use as much as 10% of all electricity generated in the United States. Further, the DOE calculates that as much as 50% of this energy is wasted. Compressed air leaks alone account for 25-30% of compressed air use. Consequently, many industrial companies are identifying ways to lower their compressed air system energy consumption. One of the most popular methods to do so is a comprehensive compressed air assessment or “air demand analysis.” The objective of this paper is to define the five steps required in a compressed air assessment. It will use a real-world example with system information from a magnetic materials manufacturer to clearly illustrate each step. In the following case, the user achieved a 42% reduction in annual energy costs.