Cut maintenance budget by 25%

Cut maintenance budget by 25%

As a CEO, COO, industrial VP, plant director or maintenance manager, you probably face to those 3 questions :

  • How far can we reduce maintenance budget?
  • How long is it possible to reduce without taking risks for the asset life cycle duration?
  • How to implement? where to start?

During low market economic phases, budgets are tights and have to be, for all company activities. Maintenance is no exception to the rule, especially in industrial sectors where maintenance budgets are high, which is specifically the case for process industries (chemistry, steel, cement, energy, Mineral, Oil and Gas…). This concerns both OPEX and CAPEX.

How much cutting maintenance budget?

-15% ? – 30% ?

You probably got some external or internal recommendations, based on benchmark between internal plants but whom calculation basis is tough to match one with the others (age / utilization rate of the assets for example…)

Thus, how to convince your teams?

On which budget line do you have to focus?

For which sector of the plant?


« Every time I ask you to perform a
project on one of my plant, I learn… »,
a COO, process industry, at the end of
the 4th project.

How long can we apply it?

Cut maintenance costs is an easy job, just turning off the taps, as spare parts and subcontracting represent a significant part of the maintenance budget.

In low market situation, the plant doesn’t run 21 shifts. You can easily afford to lose some performance points.

Nevertheless, tomorrows’ plant performance is directly linked to your current ability to ensure a minimum performance level, and thus current minimal expenses level.

-10% last year, -20% this year… you assume that you are close to the limit but you don’t know how to justify it to controlling

How to implement? where to start?

“Target validation doesn’t give you the path to succeed ! »

For a lot of our customers, after a couple of negotiation round, the target is validated. Then come the options, decision making process, risks to assess, doubts …

-          If I cut the preventive, I will increase my breakdowns

-          If I cut the improvement, I will jeopardize asset life cycle duration

-          How re-internalizing as I don’t have the skills anymore?

-          We already postponed this CAPEX for 3 years, it becomes critical


At I.A.C, we got the answer to these 3 questions!

Based on 20 years of experience in process industry (multi sectors, worldwide), we have gained a tremendous expertise, validated by customer’s loyalty, and built benchmarks that help us to structured our analysis and recommendations.


“Thanks to your experience, you
supported us in building a realistic
Road Map and onboard / motivate our
staff”, an industrial VP

“Then Why I.A.C? »

Because our customers recognize that :

1/ robust and complete benchmarks

Our 15 ratios include an global approach: economic, organizational and operational. They allow us to support you to define ambitious target that embed medium term impacts and your current market situation (low vs full market).

ARV : Asset Replacement Value


NB: illustrations, scales and value are not representative

2/ Consultants with the ability to challenge in a constructive way, all the hierarchical levels.

3/ a specific support to build improvement plan and tailored roadmap in ordrer to implement it,

With our support, you will be ready to share with your teams:

« OK, we’re going to reach -25%, sustainably and we know how! »