This article is the first part of the Secapp in the Manufacturing Industry serial. The serial includes three articles, each examining different angles of how Secapp’s critical communication and alerting solution can support manufacturing companies and production facilities.
The first article provides an overview of the rising costs of unplanned production downtime and how companies are working to minimize these financial risks in the 2020s. The second article explores how Secapp’s solutions are applied in manufacturing environments to reduce downtime costs. And the third and final part dives into ROI calculations, showing how Secapp can quickly pay for itself in these scenarios.
Secapp helps save lives and manage critical operations during crisis situations.
- Secapp is an award-winning critical communication and alerting service that enables you to reach all stakeholders important to your organization quickly and reliably. The security management of Secapp’s SaaS platform is ISO 27001:2022 certified (by Into Certification Oy).
- Secapp eliminates communication bottlenecks, especially in situations requiring rapid response. With the solution, you can prepare for, alert, act during, and recover from disruptions and emergencies.
- The system is designed to meet the needs of, among others, manufacturing industries, critical infrastructure, and public administration. Secapp works on all devices and offers multiple integration possibilities with systems used across different sectors. Learn more about Secapp’s user sectors and use cases.
1) The costs of unplanned downtime are soaring
Unplanned downtime in manufacturing causes major financial losses for European companies. Recent studies, such as Siemens’ The True Cost of Downtime 2022, show a steep rise in downtime-related expenses since 2020 (Siemens 2023, p. 6). Factors include inflation, tighter capacity utilization, and disruptions in supply chains – all of which increase the cost of each downtime incident. Below, we summarize key statistics and findings from 2020s reports, along with examples of predictive maintenance solutions.
Costs at the company level in Europe and beyond
According to Siemens’ study, in Fortune Global 500 manufacturing companies, downtime costs accounted for an estimated 11% of annual revenue in 2021-2022, up from 8% in 2019-20 (Siemens 2023, p. 12). This translates to an average of $129 million in annual losses per large production site.
A press release by Splunk LLC states that European Global 2000 companies may see average yearly downtime costs of up to $198 million (Splunk LLC 2024).
Downtime costs more per hour in Finland
Several sources estimate the cost of one hour of downtime in manufacturing at hundreds of thousands of euros. According to ABB’s 2023 global Value of Reliability survey, the global average cost per hour is around $125,000 (approx. €116,000) (ABB 2023, p. 9). In Finland, Prometalli magazine (3/2023) estimates the cost for an average company at up to €154,000 per hour. These numbers only account for lost production and direct costs – not long-term damage to reputation or fulfillment.
The 20 refers to a Gartner study estimating the average cost of IT system downtime at $5,600 per minute. Depending on the business model, hourly costs may range from $140,000 to $540,000, with a $300,000 average (The 20, 2024).
Costs vary by industry – but the trend is rising everywhere
Siemens’ 2023 “The True Cost of Downtime” report highlights the automotive industry as among the most expensive: one hour of downtime can exceed $2 million (approx. €1.8M) (Siemens 2023, p. 6). Major car factories reportedly lost over $600 million per year due to downtime (Siemens 2023, p. 11).
Oil & gas industries see similarly high figures (approx. $500,000/hour), while consumer goods and food industries experience lower costs, averaging $39,000/hour (Siemens 2023, p. 11).
Across all sectors, costs per downtime hour rose by 50% in 2021-2022 compared to 2019–20 (Siemens 2023, p. 6).
Fewer downtime events, but rising overall costs
Siemens’ report notes a positive trend: the number of unexpected equipment failures is slightly decreasing. For instance, large manufacturers experienced about 20 unplanned outages per line per month in 2021-2022, down from 26 two years earlier (Siemens 2023, p. 13).
Despite this drop, total costs continue to rise due to longer incident durations and increased productivity loss per event (Siemens 2023, p. 13).
2) Predictive maintenance aims to reduce downtime
Due to the high cost of unplanned outages, manufacturers are heavily investing in predictive maintenance to manage risks. The goal is to forecast equipment failures and perform maintenance just before a breakdown, avoiding surprise failures and unnecessary service disruptions.
Many companies report improved uptime and reduced costs when shifting from reactive to predictive maintenance. Below are some typical methods and examples.
Technology assists humans in predicting faults and scheduling maintenance
Modern predictive maintenance systems rely on IoT, sensors, and AI. Machines are equipped with vibration, temperature, or pressure sensors that monitor equipment in real-time. These devices are linked to cloud systems, where data is collected and analyzed.
Machine learning and AI detect early warning signs, such as rising vibration or heat, which may indicate a bearing failure. When a likely issue is detected, the system alerts maintenance teams in advance so they can act before a failure occurs, reducing downtime.
Many production facilities also use condition monitoring systems combining IoT sensors and analytics – tracking vibration or lubricant quality and using AI models to predict failure likelihood.
3) Predictive maintenance yields tangible benefits
Predictive maintenance has significantly reduced downtime. Siemens reports that scalable predictive maintenance is one of the most promising ROI optimization strategies (Siemens 2024).
According to a March 7, 2024 article in Maintworld magazine, U.S. Department of Energy statistics show that predictive maintenance can reduce outages by 35-45% and equipment failures by 70-75% compared to fully reactive maintenance.
The same article notes a 25–30% reduction in maintenance costs and greatly improved return on investment.
European industry shows strong interest as well: 81% of companies are already investing time and resources into predictive maintenance, and 40% see it as the most important strategy going forward (Maintworld 2024).
The pandemic in 2020-2021 accelerated the adoption of digital maintenance tools. Maintworld highlights that companies found AI-based remote monitoring solutions helpful for keeping operations running despite disruptions (Maintworld 2024).
Sources
ABB, 2023. Value of Reliability: ABB Survey Report 2023. Website: https://library.e.abb.com/public/45afcf54780c489095517e653422d157/ABB_Survey%20Report%202023_1920x1080_20231010_JL_final_edits.pdf?x-sign=Ak370UohtE0GAN4ny6J08x57u7l3IcFZYvqUBcS%2fWyWdqEyDL%2bjtb%2f8jVZZmrAep Read 25.3.2025.
Anteroinen Sami J., 2023. Kunnossapito paljon vartijana article. Prometalli. Website: https://www.prometalli.fi/natiivi/4201/kunnossapito-paljon-vartijana#:~:text=maailmanlaajuisesti%20niit%C3%A4%20oli%2069%20prosentilla Read 25.3.2025
The 20, 2024. The Cost of IT Downtime. Website: https://www.the20.com/blog/the-cost-of-it-downtime/ Read 25.3.2025
Maintworld, 2024. The predictive maintenance market forecast. Website: https://www.maintworld.com/News/The-predictive-maintenance-market-forecast#:~:text=Market%20growth%20is%20primarily%20driven,the%20minimum%20impact%20on%20production Read 25.3.2025
Siemens and Sensey Predictive Maintenance, 2024. Maximising your ROI with scalable, predictive maintenance. Website https://assets.new.siemens.com/siemens/assets/api/uuid:854533af-0f63-46d2-8534-324cf0bbb161/ROI-Report_original.pdf#:~:text=quick%20return%20on%20investment,reduction%20in%20unplanned%20downtime Read 25.3.2025
Siemens and Senseye Predictive Maintenance, 2023. True Cost of Downtime 2022. Website: https://assets.new.siemens.com/siemens/assets/api/uuid:3d606495-dbe0-43e4-80b1-d04e27ada920/dics-b10153-00-7600truecostofdowntime2022-144.pdf#:~:text=The%20average%20annual%20cost%20of,not%20running%20at%20full%20capacity Read 25.3.2025.
Splunk LLC, 2024: .conf24: Splunk Report Shows Downtime Costs Global 2000 Companies $400B Annually. Website: https://www.splunk.com/en_us/newsroom/press-releases/2024/conf24-splunk-report-shows-downtime-costs-global-2000-companies-400-billion-annually.html#:~:text=in%20Europe%20reaches%20%24198M%2C%20and,an%20organization%20recovers%20financially%20post Read 25.3.2025
This article is the first part of the Secapp in the Manufacturing Industry serial. The serial includes three articles, each examining different angles of how Secapp’s critical communication and alerting solution can support manufacturing companies and production facilities.
The first article provides an overview of the rising costs of unplanned production downtime and how companies are working to minimize these financial risks in the 2020s. The second article explores how Secapp’s solutions are applied in manufacturing environments to reduce downtime costs. And the third and final part dives into ROI calculations, showing how Secapp can quickly pay for itself in these scenarios.
Secapp helps save lives and manage critical operations during crisis situations.
- Secapp is an award-winning critical communication and alerting service that enables you to reach all stakeholders important to your organization quickly and reliably. The security management of Secapp’s SaaS platform is ISO 27001:2022 certified (by Into Certification Oy).
- Secapp eliminates communication bottlenecks, especially in situations requiring rapid response. With the solution, you can prepare for, alert, act during, and recover from disruptions and emergencies.
- The system is designed to meet the needs of, among others, manufacturing industries, critical infrastructure, and public administration. Secapp works on all devices and offers multiple integration possibilities with systems used across different sectors. Learn more about Secapp’s user sectors and use cases.
1) The costs of unplanned downtime are soaring
Unplanned downtime in manufacturing causes major financial losses for European companies. Recent studies, such as Siemens’ The True Cost of Downtime 2022, show a steep rise in downtime-related expenses since 2020 (Siemens 2023, p. 6). Factors include inflation, tighter capacity utilization, and disruptions in supply chains – all of which increase the cost of each downtime incident. Below, we summarize key statistics and findings from 2020s reports, along with examples of predictive maintenance solutions.
Costs at the company level in Europe and beyond
According to Siemens’ study, in Fortune Global 500 manufacturing companies, downtime costs accounted for an estimated 11% of annual revenue in 2021-2022, up from 8% in 2019-20 (Siemens 2023, p. 12). This translates to an average of $129 million in annual losses per large production site.
A press release by Splunk LLC states that European Global 2000 companies may see average yearly downtime costs of up to $198 million (Splunk LLC 2024).
Downtime costs more per hour in Finland
Several sources estimate the cost of one hour of downtime in manufacturing at hundreds of thousands of euros. According to ABB’s 2023 global Value of Reliability survey, the global average cost per hour is around $125,000 (approx. €116,000) (ABB 2023, p. 9). In Finland, Prometalli magazine (3/2023) estimates the cost for an average company at up to €154,000 per hour. These numbers only account for lost production and direct costs – not long-term damage to reputation or fulfillment.
The 20 refers to a Gartner study estimating the average cost of IT system downtime at $5,600 per minute. Depending on the business model, hourly costs may range from $140,000 to $540,000, with a $300,000 average (The 20, 2024).
Costs vary by industry – but the trend is rising everywhere
Siemens’ 2023 “The True Cost of Downtime” report highlights the automotive industry as among the most expensive: one hour of downtime can exceed $2 million (approx. €1.8M) (Siemens 2023, p. 6). Major car factories reportedly lost over $600 million per year due to downtime (Siemens 2023, p. 11).
Oil & gas industries see similarly high figures (approx. $500,000/hour), while consumer goods and food industries experience lower costs, averaging $39,000/hour (Siemens 2023, p. 11).
Across all sectors, costs per downtime hour rose by 50% in 2021-2022 compared to 2019–20 (Siemens 2023, p. 6).
Fewer downtime events, but rising overall costs
Siemens’ report notes a positive trend: the number of unexpected equipment failures is slightly decreasing. For instance, large manufacturers experienced about 20 unplanned outages per line per month in 2021-2022, down from 26 two years earlier (Siemens 2023, p. 13).
Despite this drop, total costs continue to rise due to longer incident durations and increased productivity loss per event (Siemens 2023, p. 13).
2) Predictive maintenance aims to reduce downtime
Due to the high cost of unplanned outages, manufacturers are heavily investing in predictive maintenance to manage risks. The goal is to forecast equipment failures and perform maintenance just before a breakdown, avoiding surprise failures and unnecessary service disruptions.
Many companies report improved uptime and reduced costs when shifting from reactive to predictive maintenance. Below are some typical methods and examples.
Technology assists humans in predicting faults and scheduling maintenance
Modern predictive maintenance systems rely on IoT, sensors, and AI. Machines are equipped with vibration, temperature, or pressure sensors that monitor equipment in real-time. These devices are linked to cloud systems, where data is collected and analyzed.
Machine learning and AI detect early warning signs, such as rising vibration or heat, which may indicate a bearing failure. When a likely issue is detected, the system alerts maintenance teams in advance so they can act before a failure occurs, reducing downtime.
Many production facilities also use condition monitoring systems combining IoT sensors and analytics – tracking vibration or lubricant quality and using AI models to predict failure likelihood.
3) Predictive maintenance yields tangible benefits
Predictive maintenance has significantly reduced downtime. Siemens reports that scalable predictive maintenance is one of the most promising ROI optimization strategies (Siemens 2024).
According to a March 7, 2024 article in Maintworld magazine, U.S. Department of Energy statistics show that predictive maintenance can reduce outages by 35-45% and equipment failures by 70-75% compared to fully reactive maintenance.
The same article notes a 25–30% reduction in maintenance costs and greatly improved return on investment.
European industry shows strong interest as well: 81% of companies are already investing time and resources into predictive maintenance, and 40% see it as the most important strategy going forward (Maintworld 2024).
The pandemic in 2020-2021 accelerated the adoption of digital maintenance tools. Maintworld highlights that companies found AI-based remote monitoring solutions helpful for keeping operations running despite disruptions (Maintworld 2024).
Sources
ABB, 2023. Value of Reliability: ABB Survey Report 2023. Website: https://library.e.abb.com/public/45afcf54780c489095517e653422d157/ABB_Survey%20Report%202023_1920x1080_20231010_JL_final_edits.pdf?x-sign=Ak370UohtE0GAN4ny6J08x57u7l3IcFZYvqUBcS%2fWyWdqEyDL%2bjtb%2f8jVZZmrAep Read 25.3.2025.
Anteroinen Sami J., 2023. Kunnossapito paljon vartijana article. Prometalli. Website: https://www.prometalli.fi/natiivi/4201/kunnossapito-paljon-vartijana#:~:text=maailmanlaajuisesti%20niit%C3%A4%20oli%2069%20prosentilla Read 25.3.2025
The 20, 2024. The Cost of IT Downtime. Website: https://www.the20.com/blog/the-cost-of-it-downtime/ Read 25.3.2025
Maintworld, 2024. The predictive maintenance market forecast. Website: https://www.maintworld.com/News/The-predictive-maintenance-market-forecast#:~:text=Market%20growth%20is%20primarily%20driven,the%20minimum%20impact%20on%20production Read 25.3.2025
Siemens and Sensey Predictive Maintenance, 2024. Maximising your ROI with scalable, predictive maintenance. Website https://assets.new.siemens.com/siemens/assets/api/uuid:854533af-0f63-46d2-8534-324cf0bbb161/ROI-Report_original.pdf#:~:text=quick%20return%20on%20investment,reduction%20in%20unplanned%20downtime Read 25.3.2025
Siemens and Senseye Predictive Maintenance, 2023. True Cost of Downtime 2022. Website: https://assets.new.siemens.com/siemens/assets/api/uuid:3d606495-dbe0-43e4-80b1-d04e27ada920/dics-b10153-00-7600truecostofdowntime2022-144.pdf#:~:text=The%20average%20annual%20cost%20of,not%20running%20at%20full%20capacity Read 25.3.2025.
Splunk LLC, 2024: .conf24: Splunk Report Shows Downtime Costs Global 2000 Companies $400B Annually. Website: https://www.splunk.com/en_us/newsroom/press-releases/2024/conf24-splunk-report-shows-downtime-costs-global-2000-companies-400-billion-annually.html#:~:text=in%20Europe%20reaches%20%24198M%2C%20and,an%20organization%20recovers%20financially%20post Read 25.3.2025
