As we’ve discussed before, regular inspections and preventative maintenance are essential to keep your electric motors and production lines running. Once the motor fails, companies must decide whether to repair or replace it. Making the wrong choice could be the difference between saving or spending thousands of dollars. As a result, many companies utilize a cost analysis to help them decide between repairing or replacing the failed electric motor.
Electric Motor Cost Analysis
Since costs drive most business decisions, start by performing a detailed cost analysis for each option.
The replacement cost analysis should include:
- Cost of the new motor
- Labor to install and bring on-line
- Transport costs (if applicable)
- Special equipment costs (crane or hoist)
- Warranty
- Lost production or sales
The repair cost analysis should include:
- Parts
- Labor
- Transport services (if applicable)
- Lost production or sales
Conducting these cost analysis projections before a motor failure can expedite decision-making to minimize potential downtime and revenue loss. In most cases, repairing the affected electric motor is typically cheaper than a complete motor replacement. Items like brushes, bearings, shafts, and capacitors can be repaired cost-efficiently. However, a new motor is the better option if repairs reach 50% – 75% of the total replacement costs.
While a cost analysis is a great starting point, several other factors must also be considered.
Parts availability – parts for older or outdated motors can be more challenging and expensive to source. Parts may need to be custom-made if the manufacturer has gone out of business.
Lead times – the longer the repair/replacement process takes, the more significant the impact on your total revenue loss. Parts lead time is usually shorter than the time needed to assemble, ship, and install a new electric motor.
Age of the motor – despite regular maintenance and service, every motor has a limited lifespan. As the motor ages, repairs can become more frequent and expensive, which helps justify the one-time replacement cost.
Energy usage – newer motors are more energy-efficient than their older counterparts. This efficiency can translate into greater long-term energy and cost savings for the company’s bottom line.
Service history – check the motor’s maintenance history for recurring issues, repairs, and downtime episodes. This can help you decide if replacing the electric motor is a better investment than repairing the unit.
New technologies – enhanced features or options might be worth the higher replacement cost if these features reduce other overhead expenses. For example, remote monitoring can eliminate the risks of employee visual inspections.
Performance needs – will the repaired motor meet changing performance needs for other components that have been replaced or updated?
Environmental concerns – in most cases, repairing a motor uses far less energy and materials than manufacturing a new motor. For companies looking to meet waste-reduction and circular economy goals, this is essential in determining the best option for your business.
Motor warranty – most new motors come with a 12–18-month warranty from the date of manufacture, which can significantly reduce or eliminate unexpected repair costs for the company. Depending on your industry or business, this can be a major factor in the decision-making process.
Performing a complete cost analysis using the points outlined above can help you decide which option makes the most sense for you. By comparing the long and short-term benefits of repairs versus replacement costs before the need arises, you can confidently make the wisest choice based on your business needs and available resources.
Please check out these recent blog posts for more information regarding electric motor repairs.
Electric Motor Reconditioning: Why and How
Best Electric Motor Repair Practices
As part of our pledge to keep you up and running, we’re happy to present you with the information you need to decide between repair and replacement options. Please note that these cost analyses represent the essential elements for your shop or company to consider. Due to the variety of electric motors and shop configurations, this list should be customized to meet your specific location and equipment.
Should you still have any questions regarding cost analysis for your electric motors or need help with basic repairs or a complete motor replacement, the Hi-Speed experts can be reached at 800-713-0103, or you can send us an email to learn more.