true cost of downtime report 2022
The report, produced by Siemens Digital Industries on behalf of Senseye Predictive Maintenance, presents the findings of a 2021‑22 survey of 56 large manufacturing and industrial organisations (automotive, oil & gas, heavy industry, FMCG/CPG). It quantifies the soaring financial impact of unplanned downtime, showing that an hour of downtime now costs at least 50 % more than in 2019‑20 across all sectors – from $39 k per hour in FMCG to over $2 m per hour in automotive. Annual losses per large plant have risen 65 % to $129 m, amounting to roughly $1.5 trillion a year for Fortune Global 500 firms (≈11 % of turnover). While the number of downtime incidents has fallen (average 20 per month, six fewer than two years ago), recovery times have lengthened, keeping total lost production high. The report attributes cost growth to post‑COVID demand spikes, inflation, supply‑chain stress, and sector‑specific pressures. It documents rapid adoption of condition monitoring and predictive maintenance (PM): three‑quarters of respondents collect basic machine data, two‑thirds perform condition‑based maintenance, and one‑third have dedicated PM teams. The authors claim PM can halve downtime, boost productivity by 6 % (≈$734 bn), cut maintenance costs by 40 % (≈$236 bn), and deliver ROI within three‑to‑six months. Detailed methodology, data‑collection practices, and extrapolation techniques are described, and the report concludes that PM has moved from niche to must‑have for large manufacturers.
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Escalating Financial Impact of Unplanned Downtime
Quantifies hourly and annual cost increases across sectors, highlighting a 50 % rise in hourly costs and a 65 % rise in annual plant losses.