To Repair or Replace – with Marc Osborne edits

Repair or Replace Equipment? How to Decide for Maximum Efficiency

To repair or replace?

You may think this question is a no-brainer. If the cost of repairing your equipment is less than the cost to replace, you repair.

However, in busy manufacturing facilities or processing plants, the answer may not be so simple. Things like quality control, sustainability, energy needs, labor costs, and operational efficiencies are factors that could impact your decision. Factors you cannot overlook.

 3 Key Factors in Deciding to Repair or Replace Equipment

When determining whether to repair or replace equipment, consider more than price alone. Let’s dive in and explore some of those factors and how CB can help you make the right decision for your business.

Factor 1: Age and Condition of Equipment

Older equipment, such as motors and gearboxes, may need more frequent repairs, and parts can become harder or more expensive to source. This is one reason why we urge our customers to not run components to failure.

Factor 2: Cost Analysis

Whether to repair or replace may warrant a cost-benefit analysis. We assist clients to evaluate all aspects of your assets. For example, smaller motors (under 50 HP) may be cheaper to replace than repair, whereas larger motors are worth repairing due to the significant cost difference. Or we may discover that you could increase production rates or energy costs with a newer piece of equipment.

Factor 3: Operational Efficiency

Proactive maintenance, such as condition monitoring, helps prevent unexpected expensive downtime and delays in product delivery. We recommend identifying the critical parts and components required for fast and efficient repair and keeping those readily stocked. 

When to Repair, When to Replace

To Repair

In many cases, companies with sustainability and environmental goals should lean toward repair over replacement. Repairing or refurbishing components, such as electric motors, not only saves money but helps meet sustainability goals by reducing the waste in landfills.

When considering repair, we caution customers to work with partners who offer certified repair services. CB collaborates exclusively with certified vendors, ensuring high-quality repairs for components like hydraulic cylinders, electric motors, gearboxes, and more. This guarantees that repairs are carried out by experts, maintaining equipment performance and longevity.

To Replace

In a perfect world, high-cost equipment could be reliably repaired. However, when repair costs far exceed replacement costs, replacement becomes the clear choice. These costs could be due to a number of factors, including the age of your equipment, history of use, safety issues, increased service calls, or excessive energy usage. In some cases, the cost of replacing the equipment will pay for itself in terms of better productivity and efficiency.

Rule of thumb: We advise replacement if repair costs exceed 70-80% of the cost of a new component. Delivery time of new can often times far exceed repair, pushing that threshold higher in some cases.

To Upgrade

Making the decision to repair or replace faulty equipment is not always cut and dry. Sometimes the equipment is outdated or obsolete. That’s when we recommend upgrading or standardizing components for greater efficiency and use.

For instance, using more durable or better-suited equipment like a larger gearbox can offer a longer lifespan, helping businesses avoid repeated failures and unnecessary costs.

Asset Hierarchy and Its Role in Repair vs. Replace Decisions (put a link to the Asset Hierarchy article)

Asset hierarchy plays a crucial role in evaluating whether to repair or replace equipment.

By categorizing equipment based on criticality, clients can prioritize maintenance and repairs. Critical assets—those essential to operations—are often monitored more closely and taken offline before failure occurs to ensure minimal disruption. 

We offer tools like condition monitoring and asset tagging to help clients identify which components are critical to production, ensuring spare parts are readily available and preventing costly downtime. This structured approach helps optimize maintenance schedules and repair decisions, improving both operational efficiency and cost savings.

Example: Achieving Cost Efficiencies

We helped a paper mill customer achieve significant cost efficiencies by addressing a recurring issue with a process pump.

The pump was frequently breaking down due to water contamination in the oil, which caused the bearings to rust and fail prematurely. After a CB expert noticed the pattern, he recommended adding a bearing isolator to the pump, creating a barrier to prevent water from contaminating the pump’s lubrication. This modification extended the pump’s lifespan from just six months to several years. By eliminating the need for frequent oil changes and repairs, the mill saved substantial costs in both maintenance and downtime.

CB’s Tailored Approach to Evaluating Equipment Repair Needs

Whether you are a new client or an existing client, we take a tailored approach to meeting and exceeding your equipment and supply needs.

When working with CB for your procurement and service needs, you have options. We employ a consultative approach, partnering with our customers and vendors to offer tailored solutions that include:

Service

CB’ repair shops specialize in electric motor repair along with light gear box and pump repair. We partner with certified repair centers for servicing large gear boxes, pumps and electronics. For critical equipment, CB’s expertise helps clients avoid downtime, saving both time and money.

Preventative Maintenance

We offer condition monitoring and routine preventive maintenance services. These routine practices allow components to be repaired before they fail completely. This is not only cheaper but also prevents unplanned downtime, an essential factor for operational efficiency.

Consultative Support

CB provides in-depth evaluations of equipment, such as inspecting scrap bins to identify repairable components and suggests cost-saving measures. We spend time with your team to uncover areas of improvement and develop solutions address those areas.

 CB’s Expertise and Client Relationships: Becoming Part of the Team

Our goal is to become embedded in our client’s facilities and processes to address their problems proactively.

Our deep expertise and long-term relationships with our customers enable us to act as an extension of your team. This close partnership streamlines decision-making, reduces downtime, and enhances productivity by providing seamless support—whether it’s troubleshooting issues, recommending repairs, or working with vendors to implement upgrades.

“I have a long-term relationship with a paper mill, one that spans over 15 years. We’ve taken the time to build a mutual relationship, one that helps me quickly identify issues without needing constant input from the mill’s staff.” — Marc Osborne, Strategic Business Manager at CB.

 CB’s Process for Evaluating Repair Needs at a New Client

When we begin working with a new customer, we follow a structured, consultative process to evaluate repair needs.

The first step is what we call a “discovery conversation”, where one of our experts ask open-ended questions to understand what types of components you find yourself frequently repairing, such as motors, gearboxes, complete drive systems, or hydraulic systems. We also assess your current maintenance practices, including whether you regularly repair components or tend to run equipment to failure.

A key part of the evaluation involves a site visit where one of our skilled representatives inspects your scrap bins to determine what equipment is being discarded unnecessarily. This hands-on inspection often reveals opportunities to repair components you may have previously been replacing, providing immediate cost savings and reducing waste.

We also conduct a current state assessment where we evaluate your asset management practices to determine whether your equipment is maintained according to best practices. This involves analyzing data on repair frequency, downtime, and criticality of assets. Based on this assessment, we can recommend the most effective repair and maintenance strategies, ensuring maximum equipment uptime at minimal cost.

CB’s Process for Evaluating Repair Needs at an Existing Client

We use a streamlined and ongoing process to evaluate repair needs for existing clients, one that integrates with your operations.

The process consists of regular site visits performed by one of our representatives to inspect equipment, monitor maintenance practices, and assess the condition of failed components. During these visits, we examine tagged components removed from service, gathering detailed information about failures and repair histories.

We work closely with your maintenance and purchasing teams to identify high-priority repairs, determine whether the parts can be upgraded for better performance, and identify critical components. During site visits, we may suggest enhancements or modifications to current equipment to optimize your operations, extend service life or improve production. For large-scale operations, we can manage repair workflows, coordinate repairs with certified vendors and ensure that the process is efficient and cost-effective.

We believe that to earn your business, we must earn your trust. Because we take that responsibility seriously, we can often identify potential issues long before they become a problem. Using preventative maintenance services through condition monitoring helps us determine which components to pull out of service before they fail — a must for reducing downtime and ensuring more cost-effective repairs.

By consistently evaluating the condition of equipment and maintaining close communication, we help customers optimize their repair strategies, reduce costs, and enhance overall productivity.