We all know the adage that “stuff happens,” and it certainly applies in manufacturing environments.

Bearings break, packaging lines jam, processing equipment stops working for any multitude of reasons, and these issues lead to unplanned downtime that is as frustrating as it is costly.

But do you know just how much downtime is costing you?

In a recent survey of 3,600 senior decision makers across sectors, ABB — with help from Sapio Research — found 44% of leaders experience equipment-related interruptions at least monthly, with 14% reporting stoppages every week.

Frequent stoppages add up. Nearly half (47%) of ABB’s survey respondents report disruption costs ranging from $10,000 to $99,999 per hour, while 29% report costs ranging from $100,000 to $499,999. Less than 10% (7%) report downtime costs of more than $500,000 per hour.

ABB says the average per-hour cost of downtime is $169,889.

How can manufacturers reduce the financial burden of downtime? ABB points to lifecycle management with a focus on modernization strategy.

This seems like common sense. In fact, 55% of respondents report having a proactive modernization strategy, while 38% say they act on a case-by-case basis. Just 6% of respondents say they’re reactive.

But there are several barriers to modernization, with budget constraints being the most significant. The report also points to reliability of upgrades, internal skills gaps, difficulty proving ROI and a preference for full replacement.

“Unplanned downtime is costing industry up to half a million dollars per hour — yet one in three businesses hasn’t modernized their motor-driven systems in the last two years,” says Oswald Deuchar, global head of modernization program, ABB Motion Services. “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 life-cycle strategies experience fewer failures and greater resilience. A key challenge, though, remains in 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.”

And ABB notes just having a modernization strategy isn’t enough. It also needs to be aligned with operational goals and well-executed to truly provide operational and financial benefits.