- The survey underscores the significance of well-executed maintenance strategies and service collaborations.
- 91 percent of the participants express keen interest in understanding how outcome-based maintenance agreements can enhance business prosperity.
In a recent survey titled “Value of Reliability,” conducted by ABB, startling statistics have emerged about the state of industrial businesses in India. The study in July 2023 by Sapio Research involved 3,215 plant maintenance decision-makers from various sectors, including metals, oil and gas, chemicals, energy generation, food and beverage, plastics and rubber, water and wastewater, rail, utilities, marine and wind. The findings shed light on the impact of unplanned outages on Indian businesses and highlight the critical role of reliability and maintenance.
According to the survey, 88 per cent of Indian industrial businesses face unplanned outages at least once a month, significantly higher than the global average of 69 percent. These disruptions come at a considerable cost, with Indian businesses losing close to INR 7 million per hour during outages, compared to the global figure of INR 10.3 million. Alarmingly, despite these challenges, 19 percent of Indian companies still rely on run-to-fail maintenance practices.
The survey underscores the importance of equipment reliability and maintenance. Globally, 92 percent of respondents reported that maintenance efforts had increased their uptime in the past year, with 38 percent experiencing an improvement of at least 25 percent. Moreover, 75 percent of those surveyed highlighted the positive impact of reliability on business reputation and financial performance and its role in meeting contractual obligations, preventing waste, and securing repeat business. Notably, respondents ranked reliability as their top priority when procuring new equipment.
Looking ahead, 60 percent of respondents plan to boost their investments in reliability and maintenance over the next three years, with a third intending to increase spending by more than 10 percent. A significant development is a growing interest in outcome-based maintenance agreements, with 90 percent of respondents expressing a willingness to explore this approach. Such contracts involve operators paying service partners based on outcomes such as increased uptime or enhanced energy efficiency. This model ensures efficient service delivery and predictable cash flow.
The need for the industry to address the genuine consequences of unplanned downtime urged a shift towards energy efficiency, digitalisation for better decision-making, and adopting forward-thinking, outcome-based strategies. This transition from high-risk run-to-fail maintenance to outcome-based plans promises improved reliability, business reputation, cost reduction, and peace of mind for industrial businesses.
This maintenance approach helps businesses and aligns with global efforts to combat climate change by meeting emissions targets and regulations. Additionally, it is pivotal in bridging the industry’s skills gap as experienced technicians approach retirement age. In conclusion, the “Value of Reliability” survey signals a critical moment for Indian industrial businesses to prioritise reliability and maintenance in their long-term strategies, ensuring competitiveness and sustainability in an ever-evolving landscape.
