Obsolescence is difficult to predict, but it reliably shows up in the cost of owning a machine through replacement parts, overhaul kits, downtime, and eventual equipment purchases. How stakeholders account for that cost, however, splits sharply along end user and OEM lines.
According to PMMI's Managing Obsolescence report, nearly all end users (85%) factor obsolescence into total cost of ownership (TCO) calculations at least some of the time. OEMs are far less likely to do so; 41% said they never include obsolescence in their TCO estimates, compared with just 7% of end users who never do.
The disconnect widens at the "most of the time" end of the scale. Roughly a quarter of end users (27%) said they regularly build obsolescence into TCO, versus 14% of OEMs. And 20% of end users factor it in about half the time, a practice reported by only 1% of OEMs.
The report frames this as an opportunity rather than a shortfall. Because end users are already thinking about obsolescence as a long-term expense, OEMs that align their estimates with those expectations stand to strengthen customer relationships. That could mean folding obsolescence into machine cost estimates or breaking it out as a distinct line item to be weighed beyond purchase price, even when those figures are approximate.
Precision is improving. The Business Intelligence team notes that by studying component cycles and monitoring obsolescence events, manufacturers can now deploy tools that predict obsolescence lifecycles with accuracy rates above 90%, giving stakeholders a workable basis for estimating future costs.
For end users, the value lies in visibility. One senior manager at a CMO/CPO says, “There are real hidden costs for organizations regarding obsolescence, so being as transparent as possible about the technology and expected life span up front would be very helpful.”
Addressing those hidden costs early demonstrates an understanding of the financial and operational pressures end users face, and positions OEMs as more informed partners.
SOURCE: 2026 Managing Obsolescence
For more insights from PMMI's Business Intelligence team, find reports, including Managing Obsolescence, The Ripple Effect: CPG Sustainability and the New OEM Spec Sheet, and Processing State of the Industry at https://www.pmmi.org/business-intelligence.
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