As the costs of elevator parts and materials continue to rise, building owners, hospitals, retailers, hotels and really anyone with an elevator are grappling with increased expenses that threaten their budgets. Whether due to supply chain disruptions, inflation, or manufacturers declaring parts obsolete, maintaining elevators has become more expensive. This can put a strain on operational costs and make it difficult to allocate resources effectively if at all.
Why Elevator Parts Prices Are Rising
Several factors are driving the increase in the price of elevator parts and materials. Global supply chain disruptions, affecting industries worldwide, are limiting the availability of key elevator components. Shipping delays, raw material shortages, politics, and rising transportation costs are all contributing to higher prices for essential parts. Inflation is also playing a significant role, with rising manufacturing costs resulting in more expensive parts. On top of this, elevator manufacturers often practice planned obsolescence, declaring equipment parts obsolete after a relatively short period. This forces building owners to purchase new components rather than repairing existing ones, driving up maintenance costs even further.
Consequences of Rising Elevator Costs
The rising costs of parts and materials can have a direct impact on your budget and operations. For instance, routine repairs, which were once manageable and part of your contract, now come with significantly higher price tags, straining maintenance budgets. In environments such as hospitals, where elevator uptime is critical, breakdowns can lead to operational disruptions, complicating the situation for hospital facility personnel. If key components are declared obsolete, you may find yourself replacing key components and potentially an entire elevator sooner than expected, resulting in substantial capital expenditures. For hotels and retailers, longer downtimes caused by supply chain delays or high repair costs can lead to negative guest or shopper experiences, potentially harming your business with bad reviews.
Strategies to Manage Elevator Costs
One of the most effective strategies for managing rising elevator costs is conducting a thorough cost-benefit analysis when it comes to repairs versus replacements and researching the marketplace. An elevator consultant can assist. Older elevators might seem cost-effective to repair, but sometimes, replacing a part or the entire system may be more economical overall. By working with an elevator consulting firm, building owners and managers can make informed decisions based on detailed analyses of both short and long term expenses.
In addition to the cost-benefit analyses, Alternative Equipment Maintenance (AEM) programs are becoming a popular way to manage elevator expenses. Unlike traditional maintenance contracts, AEM programs allow you to customize your maintenance approach. This flexibility enables building owners, hospitals, retailers, and hotels to better tailor services to their specific needs. AEM allows you to source parts independently or handle certain maintenance tasks with your service provider, giving you greater control over costs.
Working with an independent elevator consultant is another key strategy. Elevator Consultants can offer expert advice on sourcing parts, optimizing maintenance schedules, negotiating service contracts, and more. They bring an impartial perspective to your current elevator situation, identifying areas where cost savings can be achieved. By auditing the performance of your service providers, consultants can uncover unnecessary expenses, ensuring you’re not overpaying for maintenance or parts that aren’t essential.
Negotiating favorable terms in your elevator service contracts is also critical in managing costs. As parts prices continue to rise, it’s essential to revisit your contract terms with service providers. Negotiating fixed rates for parts or labor can shield you from sudden price spikes, allowing you to budget more effectively. In some cases, contracts may include clauses for price considerations if parts costs increase dramatically, providing an added layer of protection.
Identifying sourcing parts from suppliers rather than relying solely on manufacturers or service providers can also help reduce costs. Independent suppliers often offer more competitive pricing and a wider range of available parts. By diversifying your supply chain, you reduce the risk of inflated prices or delays caused by part shortages, especially when manufacturers declare certain components obsolete. The issue here is you need to make sure your service will use these parts if they are identified.
Planning for long-term capital expenditures is a crucial step in managing costs. Rather than being caught off guard by expensive repairs or replacements, building owners and managers should establish a long-term strategy for elevator modernization or significant repairs. Setting aside budgeted funds each year ensures that when major repairs or upgrades are needed, the financial burden is spread out over time rather than causing a sudden strain on your resources.
Overall
Managing the rising costs of elevator parts and materials requires a strategic approach. By conducting regular cost-benefit analyses, utilizing independent consultants, and leveraging new technologies, you can better control expenses while maintaining the safety and reliability of your elevators. Whether you’re negotiating service contracts or exploring new maintenance models, staying proactive will help you navigate the challenges of rising costs without sacrificing the quality of your elevator systems.
Why are elevator parts becoming more expensive?
Elevator parts are becoming more expensive due to numerous issues, including the global supply chain, inflation, and planned obsolescence by manufacturers. Supply chain delays, rising transportation costs, and raw material shortages have driven up prices. Additionally, inflation is increasing the cost of manufacturing these parts, which is then passed down to building owners and property managers.
How can building owners reduce elevator repair costs despite rising part prices?
Building owners can reduce repair costs by conducting thorough planning and having accurate, up-to-date data on their elevator systems, which helps in anticipating needs and avoiding surprise expenses. Working with an elevator consultant who represents your best interests is key, they can provide valuable insights into cost saving measures, maintenance schedules, and ensure that you’re not overpaying for unnecessary services.
What should I do if my elevator service provider declares parts obsolete?
If your service provider declares parts obsolete, consider working with an independent elevator consultant to assess whether the parts truly need replacement or if more affordable alternatives are available. A difficult step in this economy is planning for capital expenditures can help you manage the financial impact of system upgrades when obsolescence becomes unavoidable.