The Cost of Unplanned Downtime
Unplanned equipment downtime costs North American manufacturers approximately $50 billion annually, according to Aberdeen Research. For automotive assembly plants, a single line stoppage costs $50,000–$200,000 per hour. For semiconductor fabs, downtime on a critical tool can cost millions per incident. For oil and gas upstream operations, an unplanned compressor failure can cost $500,000 per day in lost production.
Traditional maintenance approaches — either running equipment to failure (reactive maintenance) or replacing components on fixed schedules (preventive maintenance) — are both expensive. Reactive maintenance accepts downtime risk; preventive maintenance replaces components that still have useful life, wasting capital. Predictive maintenance uses AI to identify the optimal moment for intervention — before failure, but not before the component has delivered full value.