The “Value of Reliability” survey by ABB India reveals that 88% of Indian industrial businesses face unplanned outages monthly, costing nearly INR 7 million per hour. This surpasses the global average, highlighting the critical need for robust maintenance strategies. Despite this, 19% still rely on run-to-fail maintenance. The report emphasizes the pivotal role of reliability and maintenance in business success, with 92% globally reporting increased uptime due to maintenance efforts. Outcome-based maintenance agreements are of interest to 91% of respondents, offering efficient service delivery and predictable cashflow. ABB urges a shift towards outcome-based strategies for long-term benefits.
Bangalore, India — ABB India, a global technology leader in electrification and automation, has released key findings from their latest survey, “Value of Reliability,” shedding light on the critical correlation between uptime and reliability in industrial operations.
The survey, conducted in July 2023 by Sapio Research, canvassed the perspectives of 3,215 plant maintenance decision-makers across 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 results indicate that 88% of Indian industrial businesses face unplanned outages at least once a month, a figure higher than the global average of 69%. This translates to an approximate cost of INR 7 million per hour for Indian businesses, compared to the global average of INR 10.3 million.
Despite the significant financial implications, the survey highlights that 19% of Indian businesses still rely on run-to-fail maintenance. The report underscores the critical need for effective maintenance strategies, reliability, and service partnerships to mitigate such costly disruptions.
Among the global respondents, 92% reported that maintenance efforts led to increased uptime over the past year, with 38% noting an improvement of at least a quarter. Moreover, three-quarters of participants emphasized the positive impact of reliability on business reputation, financial performance, contract fulfillment, waste reduction, and repeat business generation. Reliability was identified as the top priority in the procurement of new equipment.
Looking ahead, 60% of respondents plan to increase investments in reliability and maintenance over the next three years, with a third aiming to boost spending by more than 10%. Additionally, an overwhelming 91% expressed interest in outcome-based maintenance agreements, where operators remunerate service partners based on achieved outcomes, such as increased uptime or enhanced energy efficiency. This approach ensures efficient and predictable service delivery.
Commenting on the survey results, Amit Gupta, Division President, Motion Services, ABB India Ltd., stated, “The study’s findings make it abundantly clear that our industry frequently underestimates the genuine consequences of unplanned downtime, and the survey strongly corroborates this reality. This serves as a pivotal moment for our industry to shift its collective focus towards energy efficiency, recognizing the substantial impact of downtime.”
Gupta further emphasized, “It’s paramount that we invest in bolstering reliability, incorporate digitalization to enhance decision-making, and adopt a forward-thinking, outcome-based approach for the long term. This will improve reliability, business reputation, competitivity, cut costs, and provide peace of mind – empowering businesses to focus on their core competence.”
This innovative, outcome-based maintenance model not only aligns with climate change objectives by helping businesses meet emissions targets and regulations, but it also addresses the industry skills gap as seasoned technicians approach retirement.
For more detailed insights, please refer to the complete survey report.
** Please note that the survey is based on information provided by third parties in response to a questionnaire, rather than reviewing actual accounting records.