The Strategic Case for Repairing and Refurbishing Industrial Automation and Power Electronics: An Asset Manager’s Perspective
Industrial automation and power electronics are the backbone of modern manufacturing, processing, and infrastructure. As an asset or maintenance manager, the decision to repair, refurbish, or replace these critical components is a recurring and high-stakes challenge. While the allure of new equipment from Original Equipment Manufacturers (OEMs) is strong, a compelling case exists for prioritising repair and refurbishment—provided, of course, the equipment is not obsolete. This article explores the financial, operational, environmental, and strategic reasons why repair and refurbishment should be the default approach, drawing on industry data, best practices, and real-world experience.
Direct Cost Comparison
Repairing or refurbishing typically costs only 50-60% of the price of new equipment, making it a financially attractive option. This means that for every dollar spent on a new PLC or drive, you could potentially repair or refurbish two similar units, dramatically stretching your maintenance budget.
Hidden Costs of Replacement
Purchasing new equipment from OEMs involves more than just the sticker price. Hidden costs include:
In contrast, repair and refurbishment focus on the specific faulty components, minimising downtime and operational disruption.
Long-Term Financial Benefits
Repairing equipment can extend its lifecycle by 5-7 years, allowing you to amortise the original investment over a longer period and improve return on investment (ROI). This approach also reduces capital expenditure, freeing up funds for other critical investments.
Comparable Lifespan and Performance
With proper maintenance and the use of high-quality replacement parts, repaired and refurbished equipment can achieve a lifespan comparable to new units. The typical useful life of industrial automation equipment is 10-20 years, and effective repair strategies can help approach or even match this benchmark. Predictive and preventative maintenance further enhance reliability, reducing the frequency of unexpected failures.
Common Repairable Issues and Success Rates
Most failures in PLCs and drives are due to issues such as electrical faults, environmental stress, software glitches, component wear, and communication errors. These are typically repairable with high success rates, especially when addressed promptly by skilled technicians. For example:
Repair costs are generally much lower than replacement, and the turnaround time is faster, minimising production losses.
Waste Reduction and Resource Conservation
Repairing and refurbishing equipment prevent it from ending up in landfills, where hazardous materials can leach into the environment. Manufacturing new equipment is resource-intensive, requiring the extraction and processing of metals and other materials. By extending the life of existing assets, you conserve natural resources and reduce the environmental footprint of your operations.
Lower Carbon Emissions
The production of new industrial equipment is energy-intensive and generates significant carbon emissions. Refurbishing bypasses much of this process, resulting in a substantially lower carbon footprint. Additionally, upgrades during refurbishment can improve energy efficiency, further reducing operational emissions.
Alignment with Corporate Sustainability Goals
Repair and refurbishment support the principles of the circular economy, keeping materials in use for as long as possible and reducing demand for new products. This not only benefits the environment but also enhances your company’s corporate social responsibility (CSR) profile, which is increasingly important to stakeholders and customers.
Mitigating Supply Chain Risks
Global supply chain disruptions have made the procurement of new automation equipment unpredictable. Repairing and refurbishing existing assets provide a buffer against these uncertainties, ensuring that critical operations are not held hostage to external delays.
Avoiding Premature Obsolescence
OEMs may discontinue support for older models, which means obsolete asset repair and refurbishment is viable. This approach allows you to maximise the value of your existing investments and avoid being forced into costly upgrades before they are truly necessary.
Customisation and Upgrades
Refurbishment offers the opportunity to upgrade components, improve performance, and customise equipment to better suit evolving operational needs. This can result in performance that matches or even exceeds the original specifications, often at a fraction of the cost of new equipment.
Preventative and Predictive Maintenance
Implementing a robust preventative maintenance schedule—including regular inspections, cleaning, lubrication, and calibration—can prevent many common failures and extend equipment life. Predictive maintenance technologies, such as AI-driven diagnostics, can identify issues before they lead to costly breakdowns.
Use of High-Quality Parts and Skilled Technicians
The success of repairs depends on the quality of replacement parts and the expertise of maintenance personnel. Investing in training and sourcing reliable components ensures that repairs are durable and effective.
Environmental Protection and Proper Operation
Protecting equipment from environmental hazards (dust, moisture, temperature extremes) and ensuring proper operation through staff training further reduce the risk of failure and the need for replacement.
Warranty Policies
OEMs typically offer comprehensive warranties for new equipment, but warranties for repaired or refurbished units may be shorter or limited to specific components. However, many reputable third-party repair providers offer competitive warranties and support, often matching or exceeding OEM standards for the repaired parts.
Support Services
While OEMs may provide more extensive support for new equipment, many third-party repair specialists offer tailored support for refurbished units, including diagnostics, upgrades, and ongoing maintenance.
Cost-Benefit Analysis
Given the lower upfront and lifecycle costs, the slightly reduced warranty coverage by some providers of equipment repair is often outweighed by the financial and operational benefits, especially when repairs are performed by experienced providers.
While direct testimonials from maintenance managers are less frequently published, industry case studies consistently highlight the benefits of repair and refurbishment. For example, a manufacturing client reported a 25% reduction in equipment downtime after switching to high-quality parts for PLC replacements. In sectors where uptime is critical, such as oil and gas or power generation, the ability to quickly repair and return equipment to service is a decisive advantage.
Supporting Local Economies
The repair and refurbishment industry creates skilled jobs and supports local economies, contributing to economic sustainability and resilience.
Corporate Image and Stakeholder Value
Demonstrating a commitment to sustainability through repair and refurbishment can enhance your company’s reputation with customers, investors, and regulators.
From the perspective of an asset or maintenance manager, the case for repairing and refurbishing industrial automation and power electronics is clear and compelling. The financial savings, operational reliability, environmental benefits, and strategic flexibility far outweigh the perceived advantages of buying new.
By adopting a proactive approach to maintenance, working with a partner employing highly skilled personnel, organisations can maximise the value of their assets, reduce costs, and contribute to a more sustainable industrial future. In an era where efficiency, resilience, and sustainability are paramount, repair and refurbishment are not just cost-saving measures—they are strategic imperatives.
Rom-Control Group
Rom-Control repairs and refurbishes customer industrial electronic assets such as VSDs, PLCs, HMIs, IGBTs, Inverters, Converters, UPS’ and other automation and power electronics for substantially less that new equipment and is warranted for 2-years, which is more than most OEMs offer.
With 18 years of experience across mining, oil & gas, manufacturing, renewable & fossil energy, food & beverage, light & heavy rail, ports & marine, construction, water and more, Rom-Control is well-placed to support any business in ANZ that utilises such equipment