Companies being hit by weekly downtime costing $500,000 an hour

A new global survey of 3,600 senior decision-makers working across many sectors of industry, has revealed that 44% experience equipment-related breakdowns at least once a month, with 14% reporting stoppages every week. Most (83%) say that this unplanned downtime costs their businesses at least $10,000 per hour, with 76% reporting hourly costs of up to $500,000.
The survey, conducted for ABB by Sapio Research, also found that 55% of those quizzed say that they have plans to modernise their facilities and get rid of obsolete components such as old motors and drives. But only one in five of those facing weekly interruptions actually implement such a plan. And, among the 30% who are dealing with monthly breakdowns, just 34% are actively managing lifecycle processes for their facilities and assets.
“Unplanned downtime is costing industry up to half a million dollars per hour – yet one in three businesses hasn’t modernised their motor-driven systems in the last two years,” reports Oswald Deuchar, global head of ABB Motion Services’ modernisation programme. “That’s more than a missed opportunity, it’s a silent crisis.
“Our research shows that those who shift from reactive firefighting to forward-looking lifecycle strategies experience fewer failures and greater resilience,” he adds. “A key challenge, though, remains justifying the up-front investment. With some applications, upgrading obsolete, inefficient equipment can generate return-on-investment in less than two years, but leadership buy-in is often hard-won.”
Despite the high hourly cost of unplanned downtime, more than a third of respondents say they find it “somewhat” or “very” difficult to justify the ROI of modernisation projects to their senior leaders. And 17% of businesses “rarely or never” include the impact of lost productivity in their capital investment decisions.
Cost remains the main barrier to modernisation for 28% of those surveyed. Among the 66% who have undertaken upgrading and retrofitting projects in the past two years, just over one quarter did so to reduce the risk of stoppages.
“We’re hoping this report opens some eyes,” says Deuchar. “Modernisation isn’t just about replacing old parts, it’s about rethinking performance. With 44% of industrial players facing monthly setbacks, the case for smarter asset management has never been more urgent.”

