Repair Costs or Unplanned Downtime: What is the Bigger Problem in Construction Industries?

In construction industries, equipment and machinery usage is the backbone. With every passing day, obstacles and technical issues arise in this equipment, some manageable and others colossal. In such times, companies need to solve problems strategically and cost-effectively, to minimize production halts and time wastage. Repair costs are fixed expenses that need to be paid by the company at any cost, but these expenses can be minimized or controlled if precautions are taken like preventive maintenance and proper training of the workforce before operating any equipment.

Unplanned downtime, on the other hand, is an event that stops the operations, manufacturing, or production processes in the business mainly due to equipment breakdown and supply chain disruptions, and sometimes also because of natural disasters, energy crises, and worker carelessness. Though interrelated, repair costs and unplanned downtimes are difficulties that arise suddenly mostly, and both pose threats to the company’s long-term performance. To understand thoroughly, it is important to delve into the consequences of both problems and what can be done about them.

Reasons of Increasing Repair Costs and Possible Solutions:

1.   Overall Inflation and Costly Spare Parts:

 The major reason why repair costs have increased manifolds is because, in simple words, everything is expensive. From a nut bolt to complex machinery assembling, every little apparatus needed in repair i.e. tools, kits, mechanical and technical repair devices, all are high priced. Spare parts sometimes need to be imported because of local unavailability, and this causes an increase in overall cost due to added freight charges and import duties. Similarly, material and alloy costs are also very high, leading to gigantic costs affecting the overall revenue generation of a business. The possible solution might only be, to use the machinery efficiently, with full vigilance and caution. Though not avoidable completely, with care and proper storage conditions, machinery can be kept prim and proper for longer durations delaying repair costs.

2.   Skilled Labor Shortage:

Labor shortage is a problem not only in construction industries, where equipment is operated and used but also in the labor market of equipment repair and maintenance. Due to shortage, skilled labor in the repair service industry is expensive and sometimes even unavailable in the nick of time. This increases the overall repair costs, leading to dismay and losses for the business, delaying productivity, and dissatisfying customers. The optimum solution to this problem is hiring a permanent repair and maintenance team that works through preventive maintenance techniques and is trained to handle equipment failures, whether sudden or gradual. The team would be coached according to the company’s needs and might be outsourced for better results. Clear and straightforward instructions should be available for the maintenance team to provide quick fixes to save time and resources.

3.   Insufficient Information:

Sometimes, information about equipment and assets used by the company is inadequately saved and presented, leading to confusion and hassles. This increases repair costs because sometimes, the technique used mistakenly for an equipment repair can actually damage it if it is not meant for it. Proper assets specification should be noted and stored in cloud storage, using latest software services, for efficient verification in case of need for contingent equipment or repair of said machinery. Many service providers provide hoards of storage through cloud services, for better tallying of equipment whereabouts and check and balance of assets.

Consequences of Unplanned Downtime and Possible Solutions:

Repair costs and unplanned downtime are not just interrelated, but also avoidable through careful planning and strategies. Some results of unplanned downtime the business might have to face are:

1.   Customer Dissatisfaction and Sometimes Loss:

 Customers of today are not just busy but quite quick to judge and switch brands because of the criticality of a project or the hassles associated with unplanned downtime in the long run. In the construction industry, customer dissatisfaction means losing a customer permanently because of tough and sustained competitors. Such downtimes make customers not just agitated but also hire temporary services from other equipment rentals, completing their ongoing projects and aborting the product altogether. According to market surveys, 10% of construction projects suffer solely due to sudden breakdown or halt of equipment, machinery, or production units.

2.   Loss of Lead Time Within the Supply Chain Operations:

 Lead time is mostly estimated keeping in view the type of project being worked on. When unplanned downtime occurs, the execution phase of the project is lengthened and delayed, leading to over-usage or wear and tear of other assets involved. This leads to extra repair costs and replacement of the asset, causing trouble to the overall supply chain. To curb such pitfalls, asset maintenance management software is the need of the hour, especially for construction industries. To keep track of repair, maintenance, supervision, spare part needs, and depreciation duration, such software comes in handy. It is surveyed that companies integrating such softwares and IT tools have experienced minimal downtimes in their operations.

3.   Increased Workforce Injuries and Workplace Catastrophes:

When accidental downtime occurs, most workers are in the middle of production processes or working on automated plants. This might lead to a sudden halt leading to flying off of parts of machinery, equipment dismantling because of damage, leading to unexpected injuries. Sometimes leakage of oil and short-circuiting from faulty wiring leads to unplanned downtime and explosions.

To decide whether repair costs are a bigger problem or unplanned downtime is not the question; rather tackling both of these difficulties can be challenging and sometimes threatening for the business in the long run. If not handled wisely, such downtimes affect customer base and productivity, and so technology-integrated solutions are needed for better contingency plans.