More Than Just Replacement Parts: Why Service Is Becoming a Real Revenue Driver in the Machinery Industry

Order intake fluctuates, projects are postponed, and margins come under pressure. Many machinery manufacturers are realizing right now that relying solely on new business is risky.

One often-overlooked lever for growth lies within the company itself: service. When properly structured, it can not only build customer loyalty but also generate predictable revenue, regardless of when the next machine is sold.

In many companies, the service division has traditionally been neglected. It was often seen as merely a means to sell replacement parts and has been the stepchild of the sales department. But this view falls short. Service can be so much more than just replacement parts and maintenance.

In fact, this area holds enormous untapped potential. Especially in economically challenging times, a well-designed service offering can help cushion declines in new business revenue while simultaneously strengthening customer loyalty.

When new business slows down, the focus shifts to existing customers and long-term relationships. And this is exactly where service comes into play. More and more mechanical engineering companies are discovering that smart service offerings not only generate stable revenue but also yield significantly higher margins than product sales alone.

Typical strategies include, for example:

• Maintenance contracts with fixed intervals,
• remote support instead of on-site visits,
• digital spare parts stores where customers can place orders themselves.

All of this ensures predictable revenue while simultaneously reducing the burden on the sales department.

Some companies already generate 20 percent of their revenue from services, with this segment accounting for over 50 percent of their net income (see VDMA (ed.): Visions for the Future of Mechanical and Plant Engineering, Volume 8: Future Services 2035, p. 3). And this comes with a whole new level of planning certainty. After all, customers who receive regular care and tangible support stay longer and build trust.

A crucial step toward the future is the digitization of the service business. This often starts with simple online access that allows customers to view their machine statuses, open tickets, or order replacement parts. A typical scenario: The customer sees on the portal that a value on the machine has changed, creates a ticket immediately, and receives recommendations for action without a technician having to travel to the site.

This creates tangible benefits in everyday operations for both sides. Manufacturers can use this data to provide recommendations, such as on optimal machine settings or predictive maintenance.

Many companies deliberately start with a low barrier to entry—such as free basic features—to make it easier to get started and build trust. Step by step, this leads to a structured service offering that can be expanded and monetized. Through these platforms, additional services can be booked, support cases resolved more quickly, and customers provided with personalized support—all without the need for technicians to be on-site.

For customers, this means, above all, fewer surprises during operation and greater control. They can identify problems early on, plan more effectively, and save time and money through optimized processes.

This also pays off for manufacturers. They generate regular revenue that isn’t tied to the sale of new machines. At the same time, they build a closer relationship with their customers. Instead of just being called when there’s a problem, they actively support customers throughout their operations.

This creates a true partnership on equal footing. And in uncertain times, that is often worth more than a one-time sale.

Service is not merely an afterthought to equipment sales. It has long since become a strategic factor for success — especially when it is conceived from a digital perspective and implemented consistently.

Many companies have let their service operations run on autopilot for years. That is precisely where one of the greatest opportunities lies today. Companies that begin to systematically expand their service offerings become less dependent on new business while simultaneously building closer customer relationships.