Aftermarket Services Margin in Manufacturing: Why Service Profits Beat Equipment Sales by 2 to 10x Most OEMs are optimizing for the wrong number. Across thirty industries, McKinsey research found that aftermarket services deliver an average EBIT margin of 25 percent, more than double the roughly…

Steering committee meetings tend to follow a familiar pattern. Someone presents a pilot result. The room nods. Then someone asks the only question that matters: what happens when this rolls out to the other four plants? Usually, nobody has a…

Most predictive maintenance content is written for enterprise manufacturers with large IT teams and dedicated reliability departments. That is not the reality for most equipment OEMs. A midsized manufacturer building custom screens, feeders, conveyors, or processing equipment usually runs lean:…

AI is already paying off in manufacturing. That’s not a prediction. Most manufacturing executives with deployed generative AI say their organization is already seeing returns from it. The question isn’t whether AI works. It’s whether your organization is positioned to…

For many equipment manufacturers, service is still driven by one event: Something breaks. A customer calls. A technician is dispatched. Parts are expedited. Production is interrupted. The issue gets fixed. The cycle repeats. Understanding the true predictive maintenance ROI starts…

For decades, industrial OEMs have relied on a proven formula: innovate, manufacture, sell, and repeat. That model built some of the world’s most successful manufacturing companies. Today, however, the market dynamics have changed. Equipment replacement cycles are extending. Customers are…

Here is something most OEM sales leaders will not say out loud: they have no idea why they lost the last three contracts.  Not really. They have theories. The pricing was off. The competitor knew someone. The procurement process was political. But…

A Structural Shift in Manufacturing Economics Manufacturing has long been built on a simple equation: design a product, manufacture it, and sell it as capital equipment. Revenue is generated at the point of sale, and the relationship with the customer largely…