A new survey from ABB has revealed the close tie between uptime and reliability, confirming its findings that unplanned downtime can cost some industrial sites $103,000 per hour in the U.S. and $125,000 globally.
According to the new “Value of Reliability” survey, 69% of industrial businesses experience unplanned outages at least once a month, a number found both in the U.S. and globally. While this costs a typical U.S. business close to $103,000 per hour, $125,000 globally, some 22% of U.S. businesses surveyed still rely on run-to-failure maintenance.
The survey, conducted by Sapio Research in July 2023, gathered responses from 3,215 plant maintenance decision-makers globally across the metals, energy generation, utilities, plastics and rubber, oil and gas, wind, chemicals, rail, marine, food and beverage and water and wastewater sectors. It is part of a report that provides insights into how businesses currently manage maintenance and how they can reduce unplanned downtime.
“The findings demonstrate the importance of equipment reliability and maintenance,” ABB noted. “Globally, 92% reported that maintenance has increased their uptime in the last year, with 38% reporting an improvement of at least a quarter. Also, three-quarters of respondents said that reliability positively impacts their business reputation and financial performance, and helps them meet contractual obligations, prevent waste and secure repeat business. Reliability was rated by respondents as the top priority when purchasing new equipment.”
Looking forward, 60% plan to increase their investment in reliability and maintenance in the next three years, with a third planning to boost spending by more than 10%. Nine in 10 respondents expressed interest in outcome-based maintenance agreements; under these, operators pay service partners based on achieved outcomes, such as increased uptime or energy efficiency. This results in efficient and effective service delivery with predictable cash flow.
“Proactive planned maintenance is essential for preventing costly downtime. Without it, organizations are at higher risk for substantive financial losses and the challenge of relying on increasingly difficult-to-source labor,” said Local Division Manager – Motion Services Rob Snyder.
“With this in mind, industrial businesses should aim to progress from a high-risk run-to-failure maintenance approach to a long-term outcome-based strategy. This will improve reliability, business reputation, competitivity, cut costs, and provide peace of mind, empowering businesses to focus on their core competence.”
This new, outcome-based model of maintenance will help industrial businesses meet incoming emissions targets and regulations as the world fights against climate change. In addition, it will help overcome the industry skills gap as experienced technicians reach retirement age.
Here is the full survey report.