The Real Cost of Downtime: How a Spare Parts Strategy Saves You Thousands

Downtime isn’t just an inconvenience — it’s a profit killer. When a critical piece of automation equipment fails, your entire line can grind to a halt. And if you don’t have a replacement on hand, the clock starts ticking on production losses, labor costs, missed deliveries, and frustrated customers.

That’s why smart manufacturers are rethinking their approach to spare parts. A strategic plan can mean the difference between a minor hiccup and a six-figure disaster.

Calculating the True Cost of Downtime

Most manufacturers underestimate how expensive downtime really is — until it happens. To grasp the impact, break it into four key categories:

1. Lost Production Value

Start with your hourly production value. If your line normally produces $10,000 worth of goods per hour, even a 3-hour outage = $30,000 gone.

Formula:
(Units per hour) × (Unit value or margin) × (Downtime hours) = Lost revenue

2. Labor Costs (Paid to Wait)

When machines stop, your people don’t. Operators, techs, and supervisors still draw pay. You may even have to pay overtime to catch up later.

• Downtime = labor waste + extra shifts
• In unionized or highly scheduled facilities, this gets expensive fast

3. Rush Shipping & Emergency Sourcing

Need a drive or HMI fast? Without a spare on hand, you’ll pay a premium — especially if the part is backordered or obsolete.

• Overnight freight
• Sourcing from expensive third-party marketplaces
• Buying from unfamiliar sellers with no warranty or return options

4. Reputation & Relationship Risk

Late shipments can damage long-term customer relationships. Some OEMs or tier suppliers even face contractual penalties for missed SLAs.

The total cost of an unexpected breakdown often climbs well into the tens of thousands — far outweighing the cost of simply stocking a critical spare ahead of time.

💡 Example: One Industrial Automation Co. customer avoided a 5-day outage (worth ~$125,000 in lost revenue) by replacing a failed PowerFlex 70 drive using a stocked unit they’d purchased from IAC six months earlier.

What Makes a Good Spare Parts Strategy?

A strong spare parts strategy isn’t just about hoarding inventory — it’s about stocking the right parts, at the right time, in the right place.

1. Prioritize Critical Equipment

Not every part needs a backup. Focus on assets that would shut down production if they fail — especially:

• Drives (VFDs, servo, DC) that control essential motors
• PLCs or control modules with no immediate drop-in replacements
• Legacy HMIs or components with long lead times or obsolescence risks
• Specialized parts for proprietary OEM machines

These are your high-impact spares. A failure here costs you hours — or days.

2. Evaluate Lead Times and Availability

Modern parts may be easy to source — but legacy equipment isn’t. Many older drives, PLCs, or modules have been discontinued and can’t be ordered from the OEM. That’s when sourcing delays turn into production disasters.

Industrial Automation Co. sees this every week: Manufacturers call us after a part fails, only to find it’s 6–10 weeks out — or no longer made. A simple pre-purchase could’ve prevented the chaos.

Tip: If a key drive is more than 10 years old, don’t assume it will be in stock when you need it.

3. Track Failure Rates and MTBF

Know your weak points. If a certain servo drive has failed twice in the past three years, it’s a good candidate for preemptive stocking.

Use your maintenance records to spot trends. Planning based on real-world failure data saves you from guesswork and last-minute fire drills.

4. Label, Organize, and Assign

Even the best spare parts plan fails if no one knows where the spare is stored, or if it’s been cannibalized. Make sure to:

• Clearly label each spare with its status and storage location
• Assign ownership (maintenance, MRO, or storeroom staff)
• Set periodic review dates to ensure spares are still viable

How to Get Started (Even Without a Huge Budget)

Building a smart spare parts strategy doesn’t mean blowing your entire MRO budget. In fact, the most effective strategies are phased, targeted, and data-driven. Here’s how to begin without overspending:

1. Start with a Critical Spares Audit

Walk the floor with maintenance and production leads. Identify:

• Equipment that causes the most downtime when it fails
• Parts that are hard to find or have long lead times
• Drives, PLCs, and HMIs that are no longer made

Even identifying 5–10 “red flag” parts can dramatically reduce future downtime.

2. Buy One, Not Five

You don’t need five of everything. For legacy parts, even one spare can save you days of panic. Stock a single unit of each critical failure point, and expand from there as budget allows.

Example: If a PowerFlex 70 VFD is running a conveyor that halts your entire line, one spare on a shelf could save you tens of thousands.

3. Partner with a Trusted Reseller

Not all suppliers are equal. You need:

• Fast access to verified, tested legacy parts
• Clear warranty coverage (IAC offers 2-year warranties)
• Responsive support when things go wrong

At Industrial Automation Co., we specialize in exactly that. Whether it’s a 20-year-old servo drive or a current-gen PLC module, we help manufacturers stay ready — without blowing the budget.

💬 “We used to order parts as-needed, and paid for it in downtime. Now we keep a few key IAC spares on hand, and it’s saved us multiple times already.” – Maintenance Lead, Food Processing Facility

4. Create a Digital or Physical Spare Parts Log

This could be as simple as a shared Excel file or as robust as a CMMS system. What matters is visibility.

Track:

• Part number and description
• Machine/location it supports
• Date purchased
• Warranty status
• Where it’s stored

How Industrial Automation Co. Can Help

At Industrial Automation Co., we’ve seen it all — the overnight panic calls, the weeklong production outages, and the frustrated teams staring at a failed VFD with no backup plan.

That’s why we’ve built our entire operation around helping you stay ahead of downtime.

✅ What We Offer:

• Thousands of tested in-stock parts — from Allen-Bradley, Siemens, Mitsubishi, ABB, Yaskawa, and more
• Legacy and current models — including drives, PLCs, HMIs, power supplies, modules, and motors
• 2-year warranty on every part
• Same-day shipping for emergency replacements
• Expert support to help you find the right part fast

💬 Real Customer Testimonial:

“We were in a bind looking for an obsolete drive that no one else had. IAC had it tested, in stock, and shipped it fast. It worked flawlessly and saved us thousands in downtime.”
— Doug Romstadt, Maintenance Manager at Toledo Molding & Die

📦 Real-World Impact:

Another customer avoided a full week of downtime — worth over $100,000 in lost production — by installing a tested replacement drive we had in stock and shipped the same day.

That’s not just service. That’s peace of mind.

🟦 Don’t Wait Until It Breaks

A failed drive should never be the moment you realize you needed a spare.

Let Industrial Automation Co. help you stay ahead of the problem — with tested parts, fast delivery, and a team that knows what’s at stake when your line goes down.

👉 Contact us today or browse our inventory to start building your custom spare parts strategy.