You signed a maintenance contract with a major elevator manufacturer. You pay every month for what you believe is comprehensive coverage. Then a critical component fails, and you expect the repair to be handled under your agreement. Instead, you receive a proposal for several thousand dollars or more because the part has been declared obsolete.
Here is the part that frustrates building owners the most: the equipment maybe as young as five to seven years old. And the company is telling you it is obsolete is the same company that manufactured and installed it.
This is not an isolated incident. This is a pattern we see repeatedly across the elevator industry, and it represents one of the most significant disconnects between what building owners expect from their maintenance contracts and what they actually receive.
What Does Obsolete Really Mean in the Elevator Industry?
In the elevator industry, obsolete typically means that the original equipment manufacturer no longer produces, stocks, or supports a particular component. However, this definition is controlled by the OEM, and therein lies the problem.
When an OEM declares a part obsolete, they are essentially saying they will no longer stand behind it. This declaration can happen far sooner than building owners expect. Components that should reasonably last fifteen to twenty years or longer are being declared obsolete as soon as five years of service.
The practical impact for building owners is immediate. Once a part is labeled obsolete, it may be excluded from your maintenance contract coverage, even if you have what you believed was a full-service agreement. The OEM that manufactured the equipment, installed the equipment, and has been servicing the equipment suddenly claims they cannot support it under your existing contract terms.
Why Are OEMs Obsoleting Equipment So Quickly?
There are several factors driving this trend, and understanding them helps building owners recognize when they are being positioned for an upsell rather than receiving honest guidance about their equipment.
Product lifecycle decisions are made at the corporate level, often with little consideration for buildings that depend on long-term equipment reliability. When a manufacturer decides to discontinue a product or shift focus to newer technology, the parts and support for older equipment become deprioritized. This is a business decision, not an engineering necessity.
Revenue generation through elevator parts repair, elevator modernization and new equipment sales is a motivator. When an elevator part is declared obsolete, the building owner faces limited options. They can pay out-of-pocket for the elevator repair at premium pricing, or in some cases they may need to invest in an elevator modernization project that replaces the obsolete component with current elevator equipment. Theses are both lucrative for the elevator company.
Elevator proprietary systems accelerate this cycle. When an OEM installs elevator proprietary controllers, drives, or software, they control the entire ecosystem. Independent service providers usually cannot easily access the tools, diagnostic software, or replacement parts needed to maintain the equipment until it becomes prevalent in the industry. This gives the OEM significant leverage when they decide a component is no longer worth supporting.
How Does OEM Obsolescence Affect Your Maintenance Contract?
Most building owners assume that an elevator maintenance contract provides coverage for the equipment as long as the contract is active. In practice, many elevator contracts include exclusions for obsolete elevator parts, giving the elevator service provider an exit from coverage obligations.
Here is how this typically plays out. You have a full-service elevator maintenance agreement with the OEM. A component fails. The technician arrives, diagnoses the issue, and informs you that the part is obsolete. You are then presented with an elevator repair proposal that falls outside your contract coverage. The cost is often several thousand dollars, sometimes tens of thousands, depending on the component.
The frustrating reality is that the equipment in question may only be five, seven, or ten years old. This is equipment the OEM designed, manufactured, and installed. Yet they are unwilling to cover it under the very maintenance agreement they sold you.
Building owners are often caught off guard because they reasonably expected the OEM to support their own products for a reasonable service life. An elevator controller, drive, or major component should not become unsupported after just a few years of operation. Yet this is exactly what is happening across the industry.
What Happens After the Elevator Obsolescence Declaration?
Once a building owner is told their equipment is obsolete, the upsell begins. The service provider presents options that almost always involve significant capital expenditure.
The first option is typically a replacement of the obsolete component with a current-generation equivalent. This comes at premium pricing and may introduce new proprietary technology that creates the same obsolescence risk in the future.
The second option often presented is a partial or full modernization. The reasoning provided is that if one component has been declared obsolete, others may follow, so it makes sense to upgrade the entire system. While modernization is sometimes the right decision, it should be made on the building’s timeline based on actual equipment condition, not accelerated by artificial obsolescence declarations.
What is rarely offered is an honest assessment of whether the equipment can continue to operate reliably with alternative solutions. Third-party parts suppliers, refurbished components, and retrofit solutions may be available, but the OEM has little incentive to mention these options. An elevator consulting firm can assist in this elevator assessment.
What Can Building Owners Do to Protect Themselves?
The first step is understanding your elevator maintenance contract in detail before a problem arises. Look for language around elevator obsolescence, exclusions, and how covered versus non-covered repairs are defined. If the contract allows the elevator service provider to declare equipment obsolete at their discretion and exclude it from coverage, you are exposed to this risk.
When negotiating or renewing a elevator maintenance agreement, address obsolescence terms explicitly. A well-written contract developed with the building’s interests in mind will include protections that prevent the service provider from simply opting out of coverage when equipment ages. This is one area where working with an independent elevator consultant provides significant value, as these terms can be negotiated before you sign.
If you receive an obsolescence declaration, do not accept it at face value. Get an independent elevator assessment. It may be covered under your contract regardless of the OEM’s internal product lifecycle decisions. It may be repairable or replaceable with a non-proprietary alternative that provides better long-term support.
Keep detailed records of all maintenance performed on your equipment. Documentation of regular service, repairs, and equipment condition provides leverage in discussions with your service provider and supports your position if disputes arise about what should be covered.
Why Does This Issue Matter for Your Building?
Most building owners do not have an extra ten or twenty thousand dollars sitting in reserve for unexpected elevator repairs. When an elevator obsolescence declaration hits, it creates an immediate budget problem. The elevator needs to operate, tenants or occupants are affected, and the building owner is pressured to make a quick decision.
This pressure is exactly what creates the leverage for upselling. When you need your elevator running and you are told your only options are expensive ones, you pay. The alternative is extended downtime that affects building operations, tenant satisfaction, and potentially code compliance.
By understanding this dynamic in advance, building owners can prepare. Budget planning should account for the possibility of obsolescence issues. Contract negotiations should address these scenarios before they occur. And when an obsolescence claim is made, building owners should know they have options beyond simply accepting the first proposal presented.
How Can an Elevator Consultant Help?
An independent elevator consultant works for the building owner, not the service provider. This distinction matters significantly when elevator obsolescence claims are made.
When a building owner receives an obsolescence declaration and a costly repair proposal, an elevator consultant can evaluate whether the claim is legitimate. They can verify whether the part is truly unavailable or simply not stocked by the OEM. They can identify third-party suppliers, refurbished options, or retrofit solutions that the service provider may not have mentioned.
During contract negotiations, an elevator consultant ensures that obsolescence terms are addressed before you sign. They know what language protects the building and what language gives the elevator service provider too much discretion. They advocate for terms that keep your equipment covered for a reasonable service life, not terms that allow the OEM to exit their obligations whenever it suits their business model.
Perhaps most importantly, an elevator consultant provides perspective. They have seen this scenario play out across many buildings and many service providers. They can tell you whether the proposal you received is reasonable or inflated, whether the timeline you are being given is genuine or manufactured, and whether you have options you are not being told about.
What Does This Say About the Elevator Industry?
The obsolescence issue reflects a broader challenge in the elevator industry: the significant information and expertise gap between elevator service providers and building owners. OEMs have deep technical knowledge, control over parts and support, and contractual language written by their legal teams. Building owners have an elevator they need to keep running and limited visibility into what is actually happening.
This imbalance creates opportunities for practices that prioritize provider revenue over building owner interests. Declaring elevator equipment obsolete after just a few years is one example. Vague contract language that allows exclusions at the provider’s discretion is another. The lack of transparency around parts availability and pricing compounds the problem.
Building owners who recognize this dynamic and take steps to level the playing field are better positioned to control costs and make informed decisions about their equipment. Those who assume their maintenance contract protects them fully often learn otherwise when an expensive repair proposal arrives.
Key Takeaways
OEMs are declaring their own elevator or escalator equipment obsolete far sooner than building owners expect, sometimes after just five to seven years of service. When this happens, elevator and escalator maintenance contracts that appeared to provide comprehensive coverage may not protect you from costly repair proposals.
This is not a random occurrence. It is a business practice that shifts costs from the service provider to the building owner while creating opportunities for upselling new equipment and potential elevator modernization projects.
Building owners can protect themselves by understanding their contracts in detail; negotiating elevator obsolescence terms before signing, questioning obsolescence claims when they occur, and working with independent experts who can provide unbiased guidance.
If you have received an obsolescence declaration or a costly repair proposal and want an independent perspective, The Elevator Consultants can help you understand your options.
Frequently Asked Questions
How long should elevator equipment last before being considered obsolete?
Elevator equipment has traditionally been designed for long service lives. Controllers, drives, and major components can often operate reliably for fifteen to twenty-five years or more with proper maintenance. When an OEM declares equipment obsolete after just five to seven years, it typically reflects a business decision rather than an engineering limitation. The equipment may still be functional and repairable, but the manufacturer has chosen to discontinue support.
Does my full-service elevator maintenance contract cover obsolete parts?
It depends on how your contract is written. Many service agreements include exclusions for elevator obsolete parts, allowing the service provider to decline coverage once they declare a component unsupported. Review your contract language carefully, particularly sections addressing exclusions, parts coverage, and how obsolescence is defined. A contract developed with the building’s interests in mind should include protections that prevent the service provider from opting out of coverage simply by declaring equipment obsolete.
Can I get obsolete elevator parts from sources other than the OEM?
In many cases, yes. Third-party suppliers, refurbished parts dealers, and retrofit solution providers often have access to components that OEMs have declared obsolete. Independent service providers may also have sources for these elevator parts. An elevator consultant can help identify alternative suppliers and evaluate whether non-OEM parts are appropriate for your equipment.
What should I do if my elevator service provider declares my equipment obsolete?
Do not accept the declaration at face value. Request documentation explaining why the equipment is considered obsolete and what specifically is no longer available. Review your contract to understand what coverage obligations still apply. Consider getting an independent assessment from an elevator consultant who can verify the claim and identify alternative solutions. If your contract allows, obtain multiple quotes if a repair or replacement is needed.
How can I prevent obsolescence issues from affecting my building?
Address elevator obsolescence terms during contract negotiations before issues arise. Ensure your contract includes clear definitions of what constitutes obsolete equipment. And limits the service provider’s ability to exclude coverage at their discretion. Consider specifying minimum support periods for major components. Maintain detailed elevator service records. When planning new installations or modernizations, evaluate whether proprietary equipment creates unacceptable long-term risks compared to non-proprietary alternatives.
Why does the OEM that manufactured my elevator not support it after a few years?
OEMs make product lifecycle decisions based on their business priorities, which do not always align with building owner interests. When a manufacturer discontinues a product line, shifts to newer technology, or decides that supporting older equipment is not profitable, they may declare components obsolete. This is a business decision, not necessarily a reflection of the equipment’s actual condition or repairability. Building owners are often caught in the middle of these decisions with limited options.