Unplanned electrical failures can cost U.S. industries millions each year in downtime, safety incidents, and emergency repairs. With the release of NFPA 70B (2023), preventive maintenance has shifted from a “best practice” to a compliance requirement. Facilities can no longer afford to rely on “run-to-failure” strategies.
In this article, we’ll break down the real cost differences between preventive and reactive maintenance, explore compliance requirements, and explain why preventive strategies deliver long-term savings and reliability.
In NFPA 70B, equipment maintenance is no longer a one-size-fits-all approach. Maintenance intervals must now be determined based on three core factors:
- Physical condition of the equipment
- Criticality to facility operations
- Environmental and operational stressors
Proper classification allows facilities to prioritize high-risk assets and avoid over-maintaining equipment that is already in optimal condition.
According to the U.S. Department of Energy (DOE), every $1 spent on preventive maintenance saves $3–$4 in reactive repair costs.
Reactive maintenance, also known as “run-to-failure,” occurs when equipment is repaired or replaced only after it breaks down.
While it may appear cost-effective in the short term, the hidden expenses add up quickly:
- Emergency repair labor and expedited parts
- Overtime premiums for after-hours response
- Costly downtime and production losses
- Increased risk of accidents and OSHA citations
Unplanned downtime can cost facilities up to $300,000 per hour in lost productivity. – ABB, The Value of Reliability
Regulatory bodies now recognize that maintenance directly impacts safety:
- NFPA 70B (2023): Enforceable standard requiring facilities to implement documented Electrical Maintenance Programs (EMP).
- OSHA 29 CFR 1910: Requires employers to maintain equipment in a safe operating condition.
- NFPA 70E: Stresses that maintenance directly affects arc flash boundaries and PPE requirements.
Failure to comply not only increases safety risks but also exposes facilities to significant legal and financial liability.
Direct Costs
- Preventive: Predictable, scheduled inspections and labor.
- Reactive: Higher repair costs, emergency call-outs, and part replacements.
Indirect Costs
- Preventive: Planned downtime for service.
- Reactive: Unplanned shutdowns, lost revenue, safety incidents, and reputational harm.
Cost Factor | Preventive Maintenance | Reactive Maintenance |
Labor Costs | Scheduled, predictable | Overtime, emergency premiums |
Equipment Life | Extended 20–40% | Shortened significantly |
Downtime | Planned, minimal | Unplanned, costly |
Safety & Compliance | Reduced risk, NFPA 70B compliant | Higher risk of OSHA citations & arc flash events |
Total Cost Impact | Lower over lifecycle | Higher over lifecycle |
Preventive maintenance reduces unplanned outages by up to 70%. – U.S. Energy Information Administration (EIA)
READY TO CUT COSTS AND REDUCE RISKS?
Stop relying on “run-to-failure.” Our tailored Electrical Maintenance Programs (EMP) help you: Stay compliant with NFPA 70B & OSHA, Minimize costly downtime, Extend equipment life, and Improve safety for your workforce.
- service@chelectric.com
- (203) 754 3231
- www.chelectric.com
References
ABB. (2024). The value of reliability: Global survey of plant maintenance leaders. ABB. Retrieved from Link
Institute of Supply Management. (2024, August). The monthly metric: Unscheduled downtime. ISM. Retrieved from Link
NFPA. (2023). NFPA 70B: Recommended practice for electrical equipment maintenance (2023 ed.). National Fire Protection Association.
NFPA. (2024). NFPA 70E: Standard for electrical safety in the workplace (2024 ed.). National Fire Protection Association.
Occupational Safety and Health Administration. (2023). 29 CFR Part 1910 – Subpart S: Electrical standards. U.S. Department of Labor.
U.S. Department of Energy. (2010). Operations & maintenance best practices: A guide to achieving operational efficiency (Release 3.0). DOE.