The cost of downtime has soared despite a 23 per cent reduction in production line failures. Major manufacturers now experience 20 monthly unplanned downtime incidents per facility, six fewer than two years ago. But with each failure taking longer to recover from, they have only gained two additional hours of production capacity each month.
Senseye estimates unplanned downtime will cost Fortune Global 500 industrial companies almost $1.5 trillion this year, 11 per cent of their annual revenues. Previous Senseye research from 2019 and 2020 put the cost to these companies at $864 billion a year, around eight per cent of turnover.
Robert Russell, CTO and Co-Founder at Senseye, comments: “It’s clear from our findings that downtime is getting more costly – much more costly. In every sector surveyed, an hour’s downtime costs significantly more than it did two years ago. This is a drag on profits that businesses can no longer afford to ignore.
“What is clear is that predictive maintenance can play a crucial role in reducing costs and boosting productivity. Especially when manufacturers need to use every tool at their disposal to meet the demands of an ever-changing industry,"