How Automatic Transfer Switches Enhance Business Resilience

Do you want to keep your business running during a power outage?

There’s a simple reason power outages are a problem for business owners.

Imagine this scenario: a power outage hits. You’re sitting there watching your business sit in the dark. That is, until you realize you have automatic transfer switches.

Your business is already down, but at least you’re up and running. You’ve been able to keep your business up and running.

Automatic transfer switches can keep your business running when power goes out. Read on to learn more about how automatic transfer switches can help keep your business up and running.

In this guide:

1. What Are Automatic Transfer Switches?
2. The Real Cost of Power Outages
3. How Automatic Transfer Switches Actually Work
4. Key Benefits for Your Business Operations
5. Implementation Considerations
6. Maintenance Requirements You Can’t Ignore

What Are Automatic Transfer Switches?

An Automatic Transfer Switch is a smart electrical device that automatically transfers power from your primary source to a backup source when it senses a power outage. Whereas manual transfer switches require a person to flip a switch, an automatic transfer switch does it automatically and instantaneously.

In other words, it’s an electrical bodyguard that never sleeps. If your main power source fails, your automatic transfer switch senses the issue and automatically switches to your generator or other backup power source. When normal power returns, it switches back.

The Real Cost of Power Outages

A surprising number of business owners significantly miscalculate their financial losses due to operational downtime.

The average organization faces 86 outages a year. And recent studies indicate that downtime can:

• Shut down production lines
• Damage critical data
• Destroy sensitive equipment
• Leave systems vulnerable to security threats
• Create unsafe conditions for employees
• Spoil perishable goods

That’s pretty shocking, right? Here’s another number you may find hard to believe:

Only 21% of businesses feel they are prepared to comply with new regulations, like DORA and NIS2, so there is a big opportunity for them to be more proactive.

But that’s just the beginning of what downtime can cost a business.

According to the data, resilient companies achieve 3-5% higher annual revenue growth than their peers. That’s the benefit of maintaining operations, innovating regularly, and keeping customers’ trust, even in the face of an outage.

How Automatic Transfer Switches Actually Work

What systems ensure your business remains operational during power outages?

Automatic transfer switches are constantly monitoring your main power source for any one of these conditions:

• Loss of power
• Voltage dropping below safe levels
• Changes in frequency
• Loss of one phase in three-phase systems

When one of these conditions occurs, the switch does the following:

1. Signals your backup generator to start
2. Waits for the generator to reach proper voltage and frequency
3. Disconnects from the utility power source
4. Connects to the generator power
5. Transfers the load to your backup power

This process typically takes about 10-20 seconds, though many modern switches can complete the process in less than 10 seconds.

When normal power is restored, the transfer switch automatically does the following:

1. Detects stable utility power has returned
2. Waits a predetermined amount of time to ensure it’s stable
3. Transfers the load back to utility power
4. Signals the generator to start a cool down cycle
5. Eventually shuts down the generator

Key Benefits for Your Business Operations

An automatic transfer switch offers several benefits:

• Continuous operations during outages: No more sending employees home or shutting down production when the power goes out. Your critical systems keep running.
• Protection for sensitive equipment: Power surges when electricity returns can damage expensive equipment. Transfer switches provide clean, regulated power transitions.
• Compliance with regulations: Many industries have specific requirements for backup power systems. Automatic transfer switches help ensure you meet these standards.
• Reduced recovery time: When power outages do occur, your business can continue operations without the lengthy restart processes.
• Peace of mind: You can rest easy knowing your business is protected against unexpected power issues, even when you’re not there.

Less than one-third of business leaders feel “very prepared” to deal with challenges like technology integration and changing regulations. An automatic transfer switch can put you ahead.

Implementation Considerations

Before you rush to purchase an automatic transfer switch, here are some considerations to make:

• Load requirements: What’s your total power load? This determines the size and type of transfer switch you’ll need.
• Critical systems: Which systems absolutely must stay running during an outage? Prioritize these in your planning.
• Transfer switch location: Where will the switch be installed? It needs to be accessible but secure.
• Generator compatibility: Your transfer switch must be compatible with your backup generator’s specifications.
• Code compliance: Local electrical codes may have specific requirements for transfer switch installations.

Working with an experienced electrical engineer or contractor is critical for a proper installation. They can help you work through these considerations and properly size and install your system.

Maintenance Requirements You Can’t Ignore

Just like any critical system, automatic transfer switches need maintenance in order to work when you need them most.

An appropriate maintenance schedule includes:

• Monthly visual inspections
• Quarterly no-load tests
• Annual load bank testing
• Inspection of all connections and contacts
• Verification of all timing functions
• Testing of all sensing and control circuits

One of the biggest mistakes business owners make is to neglect maintenance. An automatic transfer switch that doesn’t work when you need it is worse than having no transfer switch at all because you have a false sense of security.

Most manufacturers recommend professional maintenance annually with more frequent checks for systems in harsh environments or for critical systems protecting operations.

Boosting Your Business Resilience

Automatic transfer switches are not just another piece of equipment – they’re an integral part of your business continuity strategy.

With companies experiencing an average of 86 outages a year, and only 21% of companies feeling prepared for business continuity regulations, taking a proactive approach to power back up makes your business a step ahead.

Remember:

• Organizations face an average of 86 outages annually
• Only 21% of companies feel prepared for operational resilience regulations
• Resilient companies achieve 3-5% higher annual revenue growth

Don’t wait until after a costly outage to learn how valuable business continuity really is. Start now to make sure your business keeps running no matter what.