A new global report from ABB, based on a survey of 3,600 senior decision-makers from around the world working in multiple sectors, finds that just over half of respondents (55%) have a strategic and proactive plan to modernize facilities and manage out obsolete components like old motors and drives. In the USA specifically, 200 local decision-makers reported that figure to be 67 percent. Despite growing awareness, the data highlights that 57 percent of industry leaders in the USA experience equipment-related interruptions at least monthly, with 21 percent reporting stoppages every single week, implying major financial and operational risks. The majority estimate these sudden disruptions cost anywhere from $10,000 up to $500,000 per hour. For 8 percent, the figure climbs even higher. The report reveals key gaps between planning and execution, common around the world. While 55 percent of global industry players claim to have a proactive modernization strategy, only one in five of those grappling with weekly interruptions actually implement such a plan. Likewise, among those who are dealing with monthly issues, just one third (34%) actively manage life-cycle processes for their facilities and assets. Steven Koay, ABB, director, service offer management modernization, explained the impact, “Unplanned downtime is not just an operational inconvenience, it’s a financial shock that can cost hundreds of thousands of dollars per hour and damage business reputation. When delays prevent companies from meeting customer deadlines, the impact goes beyond lost revenue to erode trust and competitiveness. Our research shows that those who adopt a proactive modernization approach experience far fewer instances of unplanned downtime.” Communication gaps remain. Despite the strikingly high hourly cost of unplanned downtime, 14 percent of respondents in the USA find it somewhat difficult or very difficult to articulate the return on investment (ROI) of modernization projects to senior leaders. Meanwhile, 16 percent of businesses in the region “rarely or never” include the impact of lost productivity in their capital investment decisions. Globally, cost remains the top barrier to modernization for 28 percent of industrial players. Of those who have undertaken an upgrading and retrofitting project in the last two years, just over one quarter explicitly did so to reduce stoppage risks, highlighting that the link between continuous life-cycle management and operational reliability is still not fully understood or acted upon, even by many modernization proponents.

Koay added, “Modernization is more than just replacing old parts; it’s a key strategy for keeping costs down and ensuring long-term reliability. ABB’s approach combines digital intelligence, modular retrofitting, and systems thinking to help industries move from reactive repairs to proactive life-cycle management. This shift not only reduces unplanned downtime but also strengthens operational resilience and competitiveness.”