Repair vs. Replace Equipment: Smart Decisions for Aging Automation Systems

Sooner or later, every manufacturer in Canada faces the same question: Should we repair our aging automation equipment, or is it time to replace it?

Industrial systems like servo drives and PLCs to HMIs and control panel systems are the backbone of your operation. But as this equipment ages, breakdowns become more frequent, parts harder to source, and performance less reliable.

For manufacturers in Southern Ontario, productivity and uptime are everything. The "repair or replace" question is not only a technical decision, but also a strategic one.

It's easy to see the appeal of repair. On paper, it's almost always the cheaper option, and it feels like the path of least resistance. However, the true cost of the decision isn't just the repair bill or sticker price of new equipment, but also the costs that come with deferring a necessary replacement.

Here, we aim to provide a framework to help you think clearly about whether to repair or replace aging automation equipment. We'll cover how to analyze the lifecycle of your equipment and compare the true costs of both options, so you can make an informed decision for your business.

Equipment Lifecycle Analysis Framework

Every machine has a lifespan. Knowing where your automation equipment is in that lifecycle is the first step to making a smart "repair or replace" decision. The automation equipment lifecycle typically includes:

Introduction – New equipment is installed with peak reliability and efficiency.
Growth – Equipment has settled in. Failures are rare, and it consistently provides a great ROI.
Maturity – Equipment still runs well, but minor issues begin to appear.
Decline – This is the stage to watch out for. Failures are more common, and repairs are more frequent. Performance drops, and you're spending more time and money just keeping the equipment running.

As a manufacturer, it's important to recognize when equipment transitions from maturity to decline. This is the tipping point. At this stage, another repair may buy you more time, but the costs and risks of downtime will only continue to climb.

Financial Considerations: TCO Calculations

To make the right choice, you need to look beyond the immediate repair bill and consider the total cost of ownership (TCO). This is the most objective way to compare the true costs of repair vs. replacement.

Total cost of ownership accounts for:

Initial purchase cost (new equipment investment vs. repair expense)
Operating costs (energy usage, labour, consumables)
Maintenance costs (routine servicing, spare parts, unplanned repairs)
Downtime costs (lost production during failures or extended replacements)
Resale or salvage value of the asset at end-of-life

Example:

Repairing a PLC may cost $3,000, with an expected additional life of 3 years.
Replacing the PLC may cost $15,000, but it will have a lifespan of 10 years and improve efficiency.

Once you factor in the true cost of downtime and the benefits of performance improvements, you'll often find that the "more expensive" replacement actually provides a much stronger return on investment.

Technology Obsolescence and Parts Availability

Another key factor is parts availability. Many OEMs discontinue legacy components within 10 to 15 years. When a critical part of the equipment is discontinued, repairing it becomes costly or impossible.

Servo drives & motors: Obsolete models often require refurbished parts, which may carry a higher risk of failure.
HMIs: Older touchscreen models may not support modern firmware, making replacements inevitable.
Control panels: Upgrades may be required to meet evolving safety codes.

Manufacturers in Ontario often face long lead times for obsolete parts, making downtime costs unsustainable. In such cases, replacement is the more reliable long-term option.

Performance and Efficiency Comparisons

Even if you can technically repair a machine, it may not make sense if it no longer meets production needs. Ask yourself whether the old equipment still meets your needs.

Cycle times: Is the machine fast enough? Newer automation often provides 10 to 30% increases in throughput and 15 to 30% improvements in productivity.
Energy efficiency: What does it cost to run? Modern VFDs and servo drives can reduce power consumption by up to 20%.
Integration: Does it work well with your newer equipment? Legacy systems may lack compatibility with IoT sensors, analytics platforms, or robotics.
Quality: Is the output consistent? Outdated equipment may produce higher scrap rates or inconsistent output.

When you look at it this way, upgrading can unlock savings in energy, labour, and materials that easily offset the cost of new equipment.

Regulatory and Safety Compliance Factors

Finally, there's a factor that often isn't optional: safety and legal compliance. As regulations change over time, older equipment may no longer meet current requirements:

Electrical code compliance – Outdated control panels may lack required grounding, labelling, or protective devices.
Machine guarding standards – Newer equipment often incorporates safer designs.
Environmental compliance – Legacy drives and motors may exceed acceptable noise or emission limits.

Investing in replacement can reduce legal liability, avoid fines, and improve employee safety, which is critical in Ontario's tightly regulated industrial environment.

Case Studies from Ontario Manufacturing Facilities

Case Study 1: Food Processing Plant, Mississauga

A packaging line relied on a 15-year-old HMI system that began failing intermittently. Repairs extended its life for another year, but parts shortages caused repeated downtime. After finally replacing the system, the plant saw a 20% reduction in maintenance calls and a smoother integration with new robotics.

Case Study 2: Automotive Supplier, Windsor

A tier-1 automotive supplier faced frequent breakdowns in legacy servo drives. Repairs were initially cheaper, but the annual downtime costs exceeded $250,000. A full replacement project cost $400,000 but paid for itself in under two years due to increased reliability and throughput.

Case Study 3: Food & Beverage Facility, Brampton

A conveyor control system had obsolete PLCs with parts available only on the gray market. After three costly repairs, management opted for replacement. The new PLC system enabled predictive maintenance integration, resulting in a 35% reduction in unplanned downtime.

Decision-Making Tools and Worksheets

To simplify the repair vs. replace decision, manufacturers can use structured tools:

Cost-Benefit Worksheet – Create a worksheet that compares the two paths. On one side, list the repair cost plus the expected cost of future downtime. On the other, list the replacement cost minus the gains you'll get from efficiency, speed, and reliability (your ROI).
Risk Matrix – Get specific about what could go wrong. What's the probability of the old machine failing in the next year? And what's the impact of that failure?
Lifecycle Curve Analysis – Where is this machine on its lifecycle curve? Be realistic. Are you just trying to squeeze one more year out of a machine that's clearly in decline?
Downtime Cost Calculator – Do the math to figure out exactly what one hour (or even one minute) of downtime costs you in lost production. The number is often much higher than you think.

These tools help management teams move beyond a "gut feeling" and make decisions based on data.

Balancing Short-Term Savings with Long-Term Value

The decision to repair or replace is always a balancing act. A quick repair feels like a win because it saves money upfront, and that's a powerful temptation.

However, as we've seen, the math often changes when you factor in the total costs of ownership and increasing drawbacks over time. When you use the framework we've laid out, you'll often find that replacement, while more expensive now, is the choice that truly protects your productivity and profitability for the long run.

At KAIN Automation, we help manufacturers across Southern Ontario work through this exact problem every day. We're in a unique spot because we don't just sell new systems; we also have the expertise to repair and support legacy equipment. This means we can give you an honest, clear-eyed evaluation of both paths, helping you decide whether to extend the life of your current system or plan a smart upgrade.

Smart equipment decisions start with informed analysis. Don't let aging systems dictate your future productivity—take control today.