The majority have companies have experienced at least one unplanned downtime outage over the past three years, lasting an average of four hours, according to new research.
Unplanned downtime costs $260,000 an hour across all businesses, with two episodes of downtime lasting four hours each equates to more than $2m.
The issue is being compounded by the more than two-thirds (70%) of companies which lack full awareness of when their equipment is due for maintenance, upgrade or replacement.
The costs, causes and repercussions of unplanned downtime are triggering investment in digital tools and field service management, according to the new Vanson Bourne global study, sponsored by ServiceMax, from GE Digital, a leading provider of field service management solutions.
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.
The study further reveals the extent to which businesses are investing in digital tools and field service management solutions:
- 8 in 10 companies recognise that digital tools can eliminate unplanned downtime, and zero unplanned downtime is now the number one or high priority for 72% of organisations surveyed.
- 60% of businesses confirm that digital transformation is a high or number one board level priority, and 56% report the same for innovation.
Almost half (44%) of respondents say that a digital twin with predictive maintenance would help prevent major failures, and 54% are planning to invest in a digital twin by 2020.
Likewise, field service management is expected to become a primary revenue driver within the next two years, on average.
Mark Homer, vice president Global Customer Transformation for ServiceMax, explained: “As the world has become more reliant on machines, we’ve seen a widening gap in asset efficiency awareness that’s historically gone largely unnoticed.
“This fractured insight is unnecessarily lengthening recovery time, but the research hints at a tipping point in recognition of the problem and planned investment to address it. In the same way field service management solutions moved from being reactive to proactive to preventative, we are seeing a similar shift in attitudes to unplanned downtime from recovery to protection to pre-emptive.
“Over time, zero tolerance and zero unplanned downtime will become the norm as companies develop and invest in their industrial digital strategies.”
Register for the UK’s biggest digital manufacturing show – 50% bigger for 2018!
Are you looking to learn more about Smart Factories, technology, innovation and high-growth opportunities? Then don’t miss Digital Manufacturing Week, taking place 14-15 November, 2018 at Exhibition Centre Liverpool.
Organised by The Manufacturer, Digital Manufacturing Week includes Smart Factory Expo – Europe’s largest showcase for the Fourth Industrial Revolution, and Manufacturing Leaders Summit – the UK’s largest manufacturing conference.
New features for Smart Factory Expo 2018:
- Six dedicated Visitor Zones, grouping together exhibitors thematically and helping visitors meet with the companies most relevant to them: Digital Transformation, Industrial Automation, Industrial Data, Internet of Things, Manufacturing Innovation, and Smart Factory.
- Partner Districts showcasing some of the world’s largest tech companies’ partner ecosystems, allowing you to see which solutions are the most integrated.
- Grab a seat and a coffee in the Case Study Café and be inspired by a display of UK manufacturing success stories that take you on a digital manufacturing journey.
- Come along and watch The Business Show as The Manufacturer’s Editorial team interview the great and good of UK manufacturing about their successes and failures, quiz exhibitors, and rope in passing show visitors to tell their story.
- Match/Makers is an opt-in web networking platform allowing visitors to set-up meetings with exhibitors and one another on the show floor.
- Attend one of the dozens of Manufacturing Tours on offer to facilities in and around Liverpool, and discover the fabulous infrastructure the region has to offer.
Click here to register your attendance at Smart Factory Expo for free.
- Ten Conference Streams feature UK and international manufacturing success stories: Leadership, Finance, Export Excellence, Innovation, Future Factory, Digital Transformation, Industrial Automation, Big Data, Talent Management, and Supply Chain & Logistics.
- Grab a sandwich, choose a zone and get a guided group-tour of the co-located Smart Factory Expo and finish in a dedicated VIP Lounge with our Networking Lunches.
- Pay it forward by offering five minutes of advice to the next generation of manufacturing talent via our Mentor Minutes.
- Summit delegates receive priority booking for dozens of Manufacturing Tours, organised on 13 and 16 November.
- The Hack and Pitch Competition offers a platform for the UK’s most promising tech start-ups to pitch the next big thing live to our audience of manufacturing leaders. But there can only be one ‘Rising Star’!