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Home » Growing Demand Seen for Industrial Machinery After-sales Service

Growing Demand Seen for Industrial Machinery After-sales Service

July 10, 2015
UPS

The UPS research, conducted by IDC Manufacturing Insights, indicates that while manufacturers focus on developing and deploying new machinery, the buyers of industrial machines are increasingly seeking after-sales support to maintain the complex machinery for optimal productivity.

“Industrial machinery manufacturers are in a challenging situation,” said Brian Littlefield, UPS director of industrial manufacturing and distribution. “Their pipeline depends on developing new products, yet over one-third say that 50 to 75 percent of their profitability comes from after-sales service. For many, enhancing service after the sale could be a way to differentiate from the competition and offer potential for revenue growth.”

The UPS research found that 56 percent of industrial machinery manufacturers manage after-sales service in-house and have no plans to outsource those services. The remaining 44 percent of equipment manufacturers now use, or plan to use, a third-party service provider for long-term maintenance.

The results are based on a March 2015 survey of U.S.-based industrial machinery providers with a global customer base and between $10m and $50m in annual revenue. All survey participants said more than half of their business was in North America, with the near-remainder divided evenly between South America, Europe and Asia. A small percentage of business was located in the Middle East and Africa.

The UPS Industrial Machinery Manufacturing Insights executive summary can be downloaded.

Source: UPS

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KEYWORDS Asset Management Customer Service equipment maintenance Industrial Manufacturing Logistics Service Parts Management Supply Chain Management: Industrial Manufacturing Technology UPS
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