As a CFO or Financial Controller, the balance between operational efficiency and cost management is paramount. One area where this balance is frequently tested is in the maintenance and replacement of industrial electronic assets. When equipment malfunctions, decision-makers often face two options: repair the existing asset or purchase a new OEM (Original Equipment Manufacturer) replacement. While buying new equipment may be necessary in certain situations, repairing industrial electronic assets is usually the more financially sound and operationally effective choice. Below, I’ll outline the key advantages of repairs, touching on financial, operational, and sustainability benefits.
The financial savings from repairs are one of the most compelling reasons to choose this option over replacement. Repairing an industrial electronic asset generally costs a fraction (50-60% or even less) of the price of a new OEM replacement. For example, repairing a Programmable Logic Controller (PLC) or Variable Speed Drive (VSD) can lead to immediate cost benefits, freeing up funds for other critical business priorities such as employee training, technology upgrades, or strategic investments.
Additionally, adopting a repair-focused strategy reduces the need for large spare parts inventories. Instead of maintaining redundant stock for potential breakdowns, you can rely on local repair vendors for quick fixes, significantly lowering inventory holding costs and minimising waste.
Industrial operations rely on minimal downtime to maintain productivity, meet deadlines, and avoid financial loss. New OEM replacements often involve long lead times—weeks or even months—due to supply chain complexities, manufacturing delays, or shipping logistics. In contrast, repair services, especially those offered locally, can restore functionality in as little as 7 days.
For industries such as manufacturing, mining, energy, and logistics, where even a single day of downtime can lead to substantial revenue loss, timely repairs ensure production lines remain operational. This is a critical advantage that helps businesses maintain their competitive edge.
Repairing industrial electronic assets plays a direct role in supporting corporate sustainability goals. By repairing equipment rather than discarding it, businesses reduce electronic waste, preventing it from ending up in landfills and slowing resource depletion. Repairs also lower the demand for new manufacturing, which reduces the carbon emissions (CO₂) associated with mining raw materials, production, and shipping.
This recycling-based approach aligns with growing global emphasis on environmental responsibility and can even unlock financial benefits such as tax incentives or improved stakeholder relationships. Companies that promote sustainable practices gain a competitive advantage in an increasingly eco-conscious marketplace.
Repairs don’t just fix what’s broken—they enhance reliability. During the repair process, technicians often replace aging components such as capacitors, relays, or circuit boards with higher-quality alternatives. They might also re-solder weak connections to improve durability. These proactive steps result in better performance and fewer breakdowns, extending the life of the equipment and reducing long-term maintenance costs.
Furthermore, repair services provide opportunities for root cause analysis. By identifying why a component failed, businesses can implement preventative maintenance strategies to avoid similar issues in the future. Vendors often provide warranties on repairs, adding another layer of reliability. If no warranty is offered, it may be time to find a more dependable repair partner.
In many cases, businesses rely on older equipment that is no longer supported by OEMs. Instead of scrapping these assets, proactive refurbishment can restore them to like-new condition. This is particularly valuable for superseded equipment that is still vital to operations. Refurbishment not only extends the usable life of older assets but also ensures compatibility with existing systems, avoiding the hidden costs of reprogramming or recalibration required for new replacements.
This approach future-proofs critical assets and avoids costly system overhauls while maintaining operational consistency.
Industrial facilities often operate highly integrated systems where all components must work seamlessly together. Replacing an asset with a new OEM model may require additional upgrades, reprogramming, or calibration to ensure compatibility with the existing infrastructure—costs that aren’t immediately apparent but can quickly escalate.
Repairing the existing asset eliminates these risks, preserving the current operational setup and minimising disruption. This ensures that businesses can maintain efficient operations without incurring unnecessary expenses.
Repairs also open the door for customisation and performance upgrades. For instance, during repairs, technicians can replace standard components with higher-quality alternatives, enhancing the equipment’s overall functionality. This is often impossible with new OEM replacements, which are designed to baseline specifications. By upgrading critical components during the repair process, businesses can gain performance improvements without the need for significant capital investment.
Understanding Industrial Electronic Assets
Industrial electronic assets are essential for automating, controlling, and monitoring industrial processes. These include:
These assets are critical in industries like manufacturing, energy, mining, transportation, and more. Understanding their role helps businesses better manage maintenance and repair strategies.
Conclusion: A Strategic Approach to Asset Management
Repairing industrial electronic assets is far more than a cost-saving measure—it’s a strategic decision that enhances reliability, sustainability, and operational efficiency. By prioritising repairs, businesses can reduce downtime, extend equipment lifespans, minimise inventory needs, and contribute to environmental goals, all while maintaining financial flexibility.
While new OEM replacements may be necessary in cases of obsolescence or beyond-economic-repair (BER) scenarios, these should remain exceptions. Developing partnerships with reliable repair service providers ensures businesses can maximise the value of their existing assets and remain competitive in an ever-demanding marketplace.
About Rom Control
Since 2007, Rom Control has repaired and refurbished nearly 10,000 industrial electronic assets across industries like wind, solar, mining, oil & gas, manufacturing, food & beverage, pharmaceuticals, and more. From ad hoc repairs to asset auditing, duplication (redundancy protection), and remanufacturing, Rom Control is dedicated to extending the life of your critical electronics.
**Rom Control – New life for your Industrial Electronic Assets**
Visit: http://www.rom-control.com.au
Email: rc@rom-control.com.au