The cost of downtime soars

Senseye’s ‘True Cost Of Downtime 2022 ‘ report reveals that unplanned downtime costs manufacturers at least 50% more today than it did in the period 2019-20, due to spiralling inflation and production lines running at higher capacity. The cost of a lost hour now ranges from $39,000 for FMCG facilities to over $2 million in the automotive sector.

 

This is despite a 23% 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% 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, said: “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.

To download the report go to: https://www.senseye.io/downtime-report-download