The high cost of downtime

A new Siemens report, The True Cost of Downtime 2024, highlights the financial scale of the problem. It found that unplanned downtime now costs the world’s 500 largest companies an average of 11% of their revenues – a staggering $1.4 trillion, equivalent to the GDP of Spain.

The challenge is exacerbated by ageing assets. A recent white paper by ERIKS UK & Ireland and IET revealed that more than 50% of equipment in 65% of factories is over ten years old. In over 70% of cases, no OEM spare parts are available. While equipment suppliers promote Industry 5.0 and IIoT solutions to minimise downtime in the future, many businesses must continue operating with legacy systems.

This reality makes effective maintenance not only a financial necessity but also an opportunity to strengthen sustainability strategies.

ESG benefits of maintenance and spares

Choosing to repair or replace individual parts, rather than entire systems, brings clear ESG benefits:

• Environmental: Resource efficiency, reduced waste, lower carbon emissions, and less water and energy use compared to full system replacement.

• Social: Support for local suppliers and service providers, plus longer product lifecycles that increase customer trust.

• Governance: Better resource stewardship, reduced operational and compliance risks, and improved transparency in sustainability reporting.

In short, maintenance decisions can make a measurable contribution to a company’s ESG commitments, while also protecting the bottom line.

Matthias Ludwig, Managing Director of Radwell International Germany

A strategic approach

To capture these benefits, Ludwig recommends combining predictive maintenance and obsolescence management in a structured plan. The process typically follows four stages:

1. Risk Assessment: Identify critical assets and evaluate obsolescence risk using data such as maintenance logs, supplier reliability, and end-of-line (EOL) plans.

2. Repairs: Define in advance what can be repaired, who will do it, and what lead times apply – particularly for critical components like HMIs.

3. Spare Parts: Secure key spares in advance to minimise downtime. Buying before a breakdown can save costs compared to last-minute sourcing of rare items. Subscription-based inventory services, such as Radwell’s new SparesVault, can also support this process.

4. Strategy and Upgrades: Review maintenance policies regularly and plan upgrades proactively, rather than during unplanned downtime. For example, AC drives are often cost-effective upgrade candidates, offering higher productivity, reliability and energy savings.

Financial and operational gains

Planned upgrades and well-managed spares can significantly cut downtime and reduce costs. In some cases, obsolete parts may be more than twice as expensive as modern equivalents. By upgrading in advance, companies gain access to warranties, longer-term support, and more energy-efficient technologies.

As Matthias Ludwig concludes, “Maintenance is no longer just about keeping the line running. Done strategically, it supports ESG targets, reduces costs, and ensures manufacturers get the best performance from both their people and their capital assets.”