Build Business Resilience by Outsourcing Industrial Maintenance Services
In the past few years, the world has been hit with unforeseen events that have affected business operations like never before. A global pandemic, rising inflation and volatile capital markets, to name a few, have left many business leaders perplexed as to how they will weather the storms and come out unscathed.
COVID-19 had an unprecedented effect on manufacturing operations. With facility shutdowns and layoffs followed by a sudden upswing in consumer demand, companies struggled to re-hire staff and ramp up operations to meet the need. Even today, with the pandemic officially declared over by global health agencies in May 2023, manufacturers continue to feel the lingering effects, particularly the persisting shortage of skilled labor.
According to a recent report by IBISWorld, many facilities have taken to outsourcing industrial maintenance services, including maintenance and repair, to not only fill in labor gaps for the short term, but as a business strategy focused on operational resilience. By entrusting maintenance and repair tasks to contracting partners that specialize in the trade, facilities can mitigate risks and ensure seamless operations even during market challenges.
Outsourcing Ensures Business Continuity
When COVID-19 emerged, many industrial factories were forced to dramatically curtail production activities and lay off workers. In these circumstances, outsourcing industrial maintenance services acted as a lifeline for companies to address maintenance needs without compromising on safety or efficiency. When production hastened but labor was slow to follow, manufacturers met the demand by outsourcing to trusted partners.
Outsourcing to Extend Equipment Life
When demand for goods rises, the machinery and equipment (M&E) used in factories depreciate. With the high cost of replacing old machinery with new models, businesses will opt to repair their equipment as much as possible rather than invest in new M&E.
In addition, preventative maintenance services could potentially extend the life of M&E by a year or more. By regularly scheduling maintenance checks on equipment, businesses can save their dollars and better understand the life expectancy of their M&E, allowing them to plan for future investments.
Outsourcing Provides Specialized Expertise
When labor is tight, it can be difficult for companies to employ highly paid staff with specialized skills on a full-time basis. Outsourcing industrial maintenance services enables manufacturers to tap into a pool of expertise that may not be viable to maintain in-house.
According to the IBISWorld report, it is less costly to hire external repair services to perform maintenance during shutdowns than it is to hire repair staff full-time. Outsourcing gives companies access to specialists in a number of areas such as rigging, electrical work, fabrication, mechanical services and more without having to keep them on the payroll.
Outsourcing for Operational Agility
When geopolitical and economic conditions lead to instability, outsourcing gives facilities the flexibility to scale maintenance activities up or down as needed. Laying off workers and hiring them back causes severe disruption to operations and weakens employee morale. By outsourcing to experts, companies can swiftly adapt to ever-changing circumstances while maintaining cost efficiency.
While the pandemic is over, economic volatility and uncertainty remain high. We don’t expect the outsourcing trend to wane anytime soon as businesses evolve their strategies and seek to drive more efficiency while reducing costs. External experts and contractors are now seen as partners in an essential business strategy to maintain continuity and stay resilient amidst an unpredictable future.
