Unplanned downtime in numbers: How bad is it?
A study sponsored by ServiceMax (conducted by Vanson Bourne of GE Digital), After The Fall: Cost, Causes and Consequences of Unplanned Downtime surveyed 450 field service and IT decision-makers in the UK, US, France, and Germany across the manufacturing, medical, oil and gas, energy and utilities, telecoms, distribution, logistics and transport sectors, among others.
The study finds that production and productivity, IT, and customer service are hit hardest by unplanned downtime, with damaging repercussions for businesses as a whole.
Key Research Findings:
- 82% of companies have experienced at least one unplanned downtime outage over the past 3 years (average number of outages = 2).
- Based on Aberdeen’s independent research of unplanned downtime, it can cost, on average, a company more than $250K/hour with some industries reporting an average cost of more than $25,000/minute!
- 70% of companies lack complete awareness of when equipment assets are due for maintenance or upgrade.
- Zero unplanned downtime is now the No. 1 priority or a high priority for 72% of organizations.
Apart from the above, here are a few more statistics that might interest you:
- On average, a manufacturer has to handle 800 hours of downtime every year
- The cost of unplanned downtime is 10 times more than planned downtime
- Oil & Gas companies incur a financial loss of about $38 million every year due to downtime
- 69 percent of organizations don’t know when assets are due to be upgraded
- 71 percent of organizations don’t know when assets should be scheduled for maintenance
- 75 percent of organizations don’t know when assets should be replaced
Unplanned downtime can be mitigated to a healthy degree by having a condition monitoring system in place. We have outlined some of the most high-impact benefits that a condition monitoring system can deliver. You can read them here. However, and we cannot stress it enough, it has to be done with the right technology partner. We have prepared some guidelines for you that can help you in deciding about a condition monitoring system implementation partner. We hope you make a great decision!
If you are interested in seeing a state-of-the-art condition monitoring system in action that has been developed by leading industry experts, fill in the details below and one of our experts will be with you shortly to help you out!