Key Trends & Future Outlook in Industrial Maintenance and Repair
Over the past few years, the industrial manufacturing and contracting market has been forced to deal with a significant number of changes. The industry is still feeling the ripple effects of the pandemic and has had to adjust in several areas, including capital equipment, finance, operations, and staffing. The good news is, that despite the tumult, the industry has remained resilient. A recent report by IBIS, Machinery Maintenance & Heavy Equipment Repair Services in the US, highlights the state of the industry and outlines key trends industrial contractors and manufacturers can anticipate in the near future.
Revenue and Machinery Trends
According to the IBIS report, revenue growth for the industry decreased -2.3% between 2018-2023. Changes in customer demand, supply chain interruptions, and economic uncertainty were the primary reasons we saw a downturn.
The layoffs and a brief economic recession in 2020 left manufacturers nervous about the future. As a result, companies chose to continue using existing machinery rather than invest in new equipment.
However, manufacturers and contractors have done a good job navigating the ups and downs. Now, as the nation recovers, we are starting to see the industry bounce back. The IBIS report is projecting revenue growth of 1.1% for the heavy equipment repair industry from 2023-2028.
Although rising interest rates and high inflation have presented challenges this past year, the industry remains optimistic the economic recovery will drive sustainable growth.
What Does This Mean for Manufacturers?
Since there has been less investment in new machinery, manufacturers are likely to find that existing equipment will require more maintenance and repair, as older machines may experience more frequent breakdowns. If not addressed quickly, faulty machinery could hold up production schedules and cause companies to fail to meet customer demand.
A notable trend highlighted in the report is the outsourcing of maintenance and repair (M&R) services to industrial contractors. With labor shortages continuing to vex facility managers, outsourcing M&R services to outside experts is a win-win solution, both from an operational and economic standpoint. As the economy picks up speed, we expect to see companies investing more in industrial equipment and the demand for M&R services grow stronger.
Manufacturers can further protect their existing equipment with preventive and predictive industrial maintenance services. Regular maintenance can elongate the life of heavy equipment and machinery, allowing businesses to get more from their capital investment. Preventive and predictive maintenance also enables technicians to catch issues before they become problems and negatively affect production.
Looking Ahead
While the future is optimistic, companies that remain agile and stay abreast of the latest market trends will have the advantage. If these past few years have taught us anything, it’s that an unforeseen, catastrophic event could pop up at any time. Forming strategic partnerships with industrial contracting companies can help manufacturers navigate challenges and stay flexible no matter what happens next.
