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ARTICLE · 14 FEBRUARY 2024

Case In Point: Is Maintenance The Hidden Game Changer?

Much like the game of football, when it comes to maintenance everyone thinks they are an expert, but only a few get to play in the Champions League. Because of this, companies often fall short.

GlobalFinance and Banking

Much like the game of football, when it comes to maintenance everyone thinks they are an expert, but only a few get to play in the Champions League. Because of this, companies often fall short. If we take a closer look at manufacturing companies, there are several reasons why their underperforming maintenance has a significant impact on EBITDA.

Most of these correlations are hidden, and only the effect of indirect labor and maintenance, repair and operations (MRO) costs are obvious. A short-term action to cut these costs can have an immediate and positive impact on the profit and loss (P&L) statement; however, if we take a mid- to long-term view the story will be very different.

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