What’s the True Cost of Machine Downtime?

The continuous modernization of industrial processes is dizzying and exciting. All Systems Go is a show that intends to demystify the varying technologies—from UAVs and robotics to supply chain software and virtual reality sims—and how they will advance everything from logistics to manufacturing across the globe.

Senseye’s recently-launched report, “The True Cost of Downtime,” found that large facilities lose 27 hours a month to machine failures, on average, at the cost of $532,000 for each hour of unplanned downtime.

Total losses are estimated to total $3.3 million production hours, worth US$864 billion per year across Fortune Global 500 industrial companies.

The results were compiled from studies of 72 major multinational industrial and manufacturing companies.

Alexander Hill, Chief Global Strategist of Senseye, said that unplanned downtime is “the curse of the industrial sector.” When expensive production lines and machinery stop, organizations stop earning, and those investments start costing rather than making money.

The sector hardest hit is automotive, even after years of investment in automation and systems. Auto plants were found to lose, on average, 29 production hours a month at the cost of $1.3 million per hour.

Mining, metals and other heavy-industrial companies lose 23 hours/month, equating to 1.2 million hours a year across the sector. At $187,500/hour, this adds up to $225 billion annually.

Oil and gas producers suffer 32 hours of unplanned downtime each month, on average, at the cost of $220,000 per hour, amounting to $84 million per facility.

One of the big challenges manufacturers face is managing data, sorting the valuable wheat from the white noise of chaff, and using it to effect improvements.

Senseye can help clients and customers implement effective strategies and manage them to get unplanned machine downtime under control.

Check Out Previous Episodes of All Systems Go Here!

Follow us on social media for the latest updates in B2B!

Twitter – @MarketScale
Facebook – facebook.com/marketscale
LinkedIn – linkedin.com/company/marketscale

Follow us on social media for the latest updates in B2B!

Image

Latest

Real-World Marketing
Human Skills Power Real-World Marketing in the AI Era
October 22, 2025

As marketing teams adapt to tighter privacy regulations, the decline of traditional ad tracking, and the rise of social commerce, the profession is navigating a period of rapid transformation. Generative AI, automation, and data-driven personalization are reshaping how brands communicate and compete. Amid these shifts, marketers and educators alike are reexamining the skills and values…

Read More
SPD
The SPD Hack Playbook: Streamlining Sterile Processing with Smart Tech and Team Buy-In
October 22, 2025

Sterile Processing Departments (SPDs) are the unsung backbone of surgical care — ensuring every instrument, tray, and tool is safe, sterile, and ready when needed. Yet, despite their vital role, SPD workflows often rely on manual processes and underrecognized best practices. As healthcare systems push for greater efficiency and staff well-being, SPD managers are turning…

Read More
energy
Solar + Storage: Your Defense Against Rising Energy Costs
October 21, 2025

Homeowners should consider their energy security as utility rates are increasing about 5% annually, outpacing inflation, and grid demand is rising due to AI data centers. There is a time-sensitive incentive to act, as federal tax credits for owning a solar system require the project to be completed by December 31st of this…

Read More
Investment
Business Investment in Solar and Battery Storage
October 21, 2025

Commercial and industrial electrical rates are rising, and this trend is expected to accelerate due to the massive energy demands from new data centers supporting the AI industry. For example, the Texas electrical grid is projected to need to double its capacity by 2030 to meet this new demand. This significant capital investment…

Read More