Why Modernisation is No Longer Optional

As industries become increasingly digitised and customer expectations evolve, outdated systems are more than just inefficient — they’re a liability. From rising costs to compliance gaps and safety risks, delaying modernisation exposes businesses to avoidable issues that can compromise performance and profitability.

“If you want to be competitive, modernisation isn’t optional,” says Darren Frost, NHP’s Channel Manager for SI/OEMs. “It’s an operational necessity. The longer you wait the greater the risk to your production, your team, and your bottom line.”

1. Downtime & Disruption

Unplanned downtime is one of the most costly consequences of outdated technology, halting production and damaging customer trust. “With legacy gear, you often only find out there’s a problem once it’s too late,” Darren says. “Predictive technologies give you a real advantage by letting you catch issues early, so you can act before things break down.”

In Australia and New Zealand, 71% of companies have now adopted production monitoring to detect potential failures early, a critical step in reducing costly interruptions.

2. Escalating Maintenance Costs

The older your systems, the more they cost to keep running. Spare parts become harder to source, servicing takes longer, and fewer technicians understand the technology.

“At some point legacy equipment will fail, and without parts and support it can result in serious downtime“, this is why 64% of organisations in Australia and New Zealand have already implemented asset performance management to improve system reliability and reduce ongoing maintenance costs.

3. Compliance and Safety Risks

Regulatory requirements are constantly evolving, and older systems may lack the safety features and traceability now expected by auditors and insurers. “Safety standards are always evolving,” Darren explains. “If your systems don't meet the required regulations, you and your team could be at risk.” Preventive maintenance strategies are linked to 25% fewer safety incidents thanks to better planning and early fault detection.

4. Energy Inefficiency

Older equipment often consumes far more energy than necessary, inflating costs and increasing your carbon footprint. Darren emphasised that today’s machines aren’t just about working harder, they’re about working smarter. “Modern equipment is built to be more efficient and also provide insights on further improvement. It’s about optimisation and future-proofing your operations.”

5. Lack of Data Visibility

Legacy systems often operate in silos, limiting real-time insight and slowing decision-making. According to Darren, isolated systems create blind spots that hold businesses back. “To remain competitive, you must be able to get the collective insights to improve and optimise your machines and plant."”

Modern solutions enable integrated data analytics and automation, offering greater control, agility, and responsiveness.

6. Obsolescence and Skill Shortages

As manufacturers retire legacy platforms, spare parts become scarce and the specialised expertise needed to maintain ageing systems grows harder to find. This creates a serious risk: even if a system is running fine now, when it eventually fails there may be no one available to fix it, leading to costly downtime that can last days or even weeks. “Even if your system’s working fine today, what happens when it breaks and no one knows how to fix it?” Darren warns.