Basic Asset Management: Benefits of Preventive Maintenance
Utilities like those that supply power, water, and gas for residents and businesses are your prototypical service providers. Excluding the production of clean water, these businesses don’t necessarily provide a tangible good that customers can touch or hold. And like many other service providers, utilities have high overhead costs. Especially when you consider the complexities of the assets they own and the maintenance involved.
For example, it’s been reported that the cost of shifting the U.S. power grid to 100% renewable energy would cost about $4.5 trillion. That’s indicative of a massive overhaul. Replacing busted pipes, leaky valves, and outdated meters add up to a substantial cost. It’s because of these costs that utilities must take good care of their assets. Here are a few advantages for utilities that perform regular asset maintenance through preventative care. (more…)