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

future of healthcare
Leading Through Change: Dr. Kevin Stevenson on Workforce, Innovation, and the Future of Healthcare
October 1, 2025

Healthcare is at a critical turning point, where staffing pressures, shrinking reimbursements, and rising patient expectations are reshaping the future of healthcare. According to the AACN Nursing Workforce Fact Sheet, the federal government projects more than 203,000 new registered nurse positions will be created annually from 2021 to 2031, reflecting high demand from an…

Read More
Non-traditional students
Holistic Support in Higher Ed: Why Non-Traditional Students Need More Than Just Financial Aid
October 1, 2025

Non-traditional students—adult learners, student parents, veterans, and first-generation college-goers—are carrying heavier burdens than ever. Upswing’s 2024 Ana Insights Report found that nearly nine in ten students intended to complete a FAFSA application, while many also sought help with essentials like food, housing, and bill payments. Perhaps most concerning, students expressed declining confidence in higher…

Read More
EAA AirVenture
From Ground to Sky: How Icom Radios Connect Crews, Docks, and Air Traffic at AirVenture 2025
October 1, 2025

Nestled in the shaded quiet of Oshkosh’s Seaplane Base, there exists a side of EAA AirVenture that many attendees never see. Unlike the bustling main grounds, the Seaplane Base operates for just one week each year, transforming from an unused shoreline into a hub of aviation activity. It takes hundreds of volunteers and days…

Read More
Seaplanes
Clear Signals, Safe Waters: Why Icom Radios are Key to Seamless Seaplane Operations at AirVenture 2025
October 1, 2025

At the heart of EAA AirVenture 2025, the Seaplane Base offers a unique glimpse into aviation’s most delicate dance—where water and air meet. Unlike traditional runways, this floating airfield demands a constant balance of precision, coordination, and communication. Here, pilots don’t just rely on their own skill; they depend on an entire team of…

Read More