Why wait for incidents to occur? For asset-intensive industries, the proactive management of assets is not merely advantageous but imperative. The consequences of waiting for incidents to occur before addressing maintenance issues are far-reaching and can significantly impact a company’s financial health, productivity, safety record, reputation, and regulatory compliance.
Let’s review five consequences:
- Financial Loss: Reactive approaches to asset management often come with a hefty price tag. Unexpected repairs, downtime, and potential legal liabilities can quickly escalate costs. According to a report by Aberdeen Group, unplanned downtime can cost industrial manufacturers up to $260,000 per hour on average. Waiting for an incident to prompt action can lead to dire financial consequences, draining resources that could have been allocated more efficiently.
“Some of our larger industrial customers could experience $2,000,000 per hour in unplanned downtime.” – CoGo
- Decreased Productivity: The ripple effect of waiting for incidents to occur extends to decreased productivity. Each one of these individual ripples can build into a wave if unaddressed. Disruptions in operations due to asset failures can cause delays in production schedules, impacting overall efficiency. Research from Deloitte underscores the importance of predictive maintenance in mitigating such risks. By anticipating asset failures ahead of time, companies can avoid unplanned downtimes, reduce breakdowns by 70%, and increase productivity by 25%.
- Safety Risks: Neglecting proactive maintenance and inspections elevates safety risks for personnel. Failure to keep equipment in safe working conditions is a leading cause of workplace accidents in asset-intensive industries, as highlighted by the Occupational Safety and Health Administration (OSHA). Safety regulations also vary by industry. For example, in the USA, mining companies face a range of safety compliance issues governed by a specific body named MSHA. The bottom line is that waiting for incidents to prompt maintenance actions jeopardizes the well-being of employees and exposes companies to potential legal liabilities arising from workplace injuries.
- Reputation Damage: Incidents stemming from neglected assets can tarnish a company’s reputation and erode customer trust. Consumer expectations regarding corporate responsibility are higher than ever – a study by PwC found that 76% of consumers would discontinue relationships with companies that treat the environment, employees, or the community in which they operate poorly. The fallout from reputation damage can have long-lasting effects on a company’s bottom line and market standing.
- Regulatory Compliance Issues: Neglecting asset maintenance and safety protocols can spell regulatory trouble for companies. Non-compliance with industry regulations and standards can result in fines, penalties, and legal consequences. In industries such as oil and gas, where safety regulations are stringent, failure to adhere to prescribed protocols can lead to significant financial penalties and even criminal charges.
Protecting Your Company’s Future with CoGo’s Loss Prevention Solutions
Considering these consequences, it is clear that the cost of waiting for incidents to occur far outweighs the benefits. Asset-intensive companies cannot afford to adopt a reactive stance when it comes to maintenance management. Instead, they must embrace proactive strategies that prioritize preventative action and predictive maintenance.
At CoGo, we understand the critical importance of proactive asset management. That’s why our Loss Prevention solution, equipped with advanced sensors and real-time monitoring solutions, empowers companies to detect potential issues before they escalate into costly incidents. By leveraging real-time data and predictive analytics, we assist our clients in optimizing maintenance strategies, enhancing operational efficiency, and safeguarding their reputation.
Don’t wait for incidents to occur before taking action. Reach out by emailing firstname.lastname@example.org and take proactive steps to secure your assets. Let us partner with you in your journey toward sustainable success!