An Hour of Engineering Downtime Costs Facilities $50,000-Plus: Study

A minute of engineering downtime isn’t just a passing moment. It represents missed delivery windows, stalled product launches, and disrupted supply chains. All of this can build up and lead to millions of dollars in lost revenue.

Overall, 54% of respondents from a SimuTech survey reported three or more downtime events in the past year. Among larger companies with $250-499 million in annual revenue, nearly two-thirds reported at least three incidents. Mid-market suppliers operating at higher volumes were particularly vulnerable, with each lost hour translating into greater financial consequences.

Nearly half of smaller businesses under $50 million in annual revenue reported only 1-2 events, suggesting that scale played a role in exposure.

“The findings revealed that downtime was both common and costly, affecting manufacturers across industries and company sizes. Interruptions reduced output, strained budgets, and eroded customer trust, making them a persistent challenge for engineering and operations teams,” the study says. “That said, manufacturers still have hope. The data also pointed to opportunities for improvement. Investments in training, staffing, and simulation tools helped reduce the frequency and duration of downtime, though barriers to adoption remained. Manufacturers that addressed these hurdles developed better reliability and resilience, especially as supply chains grew more complex. For manufacturers, reducing downtime was not only a financial imperative but also a way to safeguard relationships and maintain a competitive edge.”

Key takeaways:

• 52% said an hour of downtime cost their facility $50,000 or more on average.
• 21% reported their largest downtime event in the past year cost $250,000 or more.
• 47% estimated downtime consumed 3% or more of their company’s annual revenue.
• 45% confirmed they had to delay or cancel a product launch due to downtime.
• 54% experienced three or more downtime events lasting an hour or more in the past year.
• 60% of teams using simulation tools reported identifying potential failures before production, though 40% also cited implementation time as a barrier.
• In the past year, more than half of respondents reported at least three major interruptions lasting an hour or longer.
• When systems went offline, mechanical and software issues remained the No. 1 and No. 2 issues, respectively, and combined, accounted for more than half of all recent incidents. Environmental factors, such as power outages or weather, also contributed, while delays in materials and supply chain disruptions added further complications.
• Mechanical breakdowns were the most common single cause, reported by nearly one in three respondents. These failures often required parts replacement and extended recovery times. Software and systems errors were the next most frequent, underscoring the growing reliance on digital infrastructure.
• Most respondents reported their most recent downtime lasted between 1-5 hours, with 44% pointing to 1-2 hours and 29% to 3-5 hours. These findings showed that interruptions often extended well beyond a quick reset or repair, instead consuming a large part of a working shift.
• Extended outages, while less common, created significant disruption. Nearly 11% said their last downtime lasted six hours or more. Larger manufacturers were more likely to experience these extended stoppages, which again reflects that larger manufacturers are more likely to experience outages due to their complex operations.
• One in three respondents estimated that downtime consumed 3-5% of their company’s annual revenue, while another 14% reported losses of 6% or more. Smaller firms were less likely to report high-percentage losses, though the financial strain was still significant. Even a 1-2% revenue hit could challenge businesses operating on narrow margins.
• Nearly half of respondents said downtime had forced their company to delay or cancel a product launch. For suppliers, these disruptions not only meant missed revenue but also damaged trust with customers relying on precise delivery schedules.
• Larger organizations were more likely to report these setbacks, reflecting how the ripple effects grew as operations scaled. In industries where reliability was a deciding factor in long-term contracts, maintaining consistent output was essential to protecting client relationships. Ultimately, the findings showed that downtime was as much a reputational risk as it was a financial one.
• The most common barrier was the time required to implement, cited by 40% of respondents. Even when the long-term benefits were clear, the initial investment of staff hours and integration slowed adoption. Another 22% cited a lack of trained staff, suggesting that workforce readiness was just as important as access to the tools themselves.
• Cost was another hurdle, with 18% saying software or licensing fees held their companies back. Smaller firms, in particular, were more sensitive to the upfront expense, while larger organizations were more likely to struggle with the internal resources needed to train staff and implement effectively.