Let’s Talk Asset Protection

Let’s Talk Asset Protection

by Joe Stumph

Cars, trains, planes, homes, elevators, and escalators are all assets — and to protect these assets, we must maintain them. These tasks take time, and time costs money. There are literally hundreds of tasks that need to be performed for proper elevator and escalator maintenance, and all of them at different intervals and costs. When you do a deep dive into contracts, many of them go into detail about the assets that are covered, and less about the tasks that are needed to maintain them. Understanding and evaluating both your elevator’s visual inspections and the time and costs associated with their maintenance is critical for their protection.

In the last 10+ years, the elevator industry has trended toward the so-called “visual inspection.” It’s not to say that a visual inspection has no value, but it fixes nothing. Without proactive maintenance, the inspection doesn’t prevent damage. As an example, if, during a visual inspection, the technician notices that the brushes on an MG set are worn yet fails to fix them, a callback is inevitable and a future repair is required. At this point, the argument is often made that the MG set is outdated and obsolete, and you will be responsible for a portion of the repair cost. However, this situation is avoidable with simple maintenance tasks being performed during the time of the visual inspection. This is why I have an issue with the “visual inspection” taking the place of a maintenance task completion visit. 

Additionally, by monitoring the time spent on each elevator, you can reasonably gauge the level of maintenance you are receiving. Let’s say the ABC building has 3 eight stop traction elevators, each requiring one hour of maintenance per month, and their maintenance contract is $1240 per month. If technician labor costs $100 per hour (which, depending on your region, can run between $85 and $165 an hour!), the equipment is 20 years old, and parts are 30% of the monthly cost, the service provider would only be left with $568 (minus parts and labor) to cover callbacks and profit per month. By understanding these factors, you are saving yourself and your provider time and money. 

As the CEO of Auditmate, Ashleigh Wilson, says, “YOU CAN’T FAKE THE WORK.”  When it comes to the many factors of elevator inspections and maintenance, you can’t skip the tasks and you can’t lose track. If you need help managing this part of your business please reach out to us at Auditmate. We can help. Let us do the heavy lifting. 

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