To companies that want to remain competitive in hotly-contested markets, the nuts and bolts of long-term success are low operating costs, short production cycles, low energy costs and high quality. The cost of procuring a facility that will remain in operation for twenty years or more makes up around 15 % of its overall cost.
The remaining 85 % of its cost is comprised of continuous expenses for maintenance and repair, as well as the cost of energy. Together, these are the real cost drivers. This larger fraction is often underestimated or ignored, as it is hidden at the time of purchase – it can be compared to an iceberg, the bulk of which is hidden below the surface of the water. This means that investment decisions are often made before adequate information on long-term running costs is available.