When planning and performing maintenance on a piece of industrial machinery, most technicians will say they like to deal directly with the Original Equipment Manufacturer (OEM). There are often many benefits from doing this, but sometimes it’s not possible or it creates other problems.
This blog covers who OEMs are, their responsibilities and the benefits of using OEMs versus aftermarket replacement parts. Whether to use the services of an OEM or an aftermarket supplier will depend on your organization’s particular equipment types and components, workflows, environment, and failure risk. Read on to see what is recommended for your facility from Advanced Technology Services (ATS).
What is an original equipment manufacturer (OEM)?
An industrial OEM is a company that designs, engineers, and manufactures industrial machinery, equipment, systems, or components for use in industries such as manufacturing, food processing, automotive, energy, pharmaceuticals, and logistics. Industrial OEMs are responsible for developing equipment to meet specific performance, safety and reliability standards, and they typically provide replacement parts, technical documentation, warranties, and ongoing support throughout the equipment’s lifecycle.
Take a packaging line as an example. This will be built by a specialist company who probably also handles integration and installation and may offer maintenance services. Where things get complicated is that the builder will have purchased many of the components used. The Programmable Logic Controller (PLC) will have been sourced from a PLC manufacturer, the motors and drives from motor manufacturers and so on. While there’s an OEM for the packaging line, many of the parts and systems in that line have their own OEMs.
For both the line and individual original manufacturer parts, industrial OEMs are the prime source of knowledge and information regarding the equipment they made. They handle the design, development and manufacturing, they know the specifications and limitations and they can provide documentation and warranties.
In many facilities, relationships with industrial OEMs extend well beyond the initial equipment purchase. Manufacturers frequently rely on industrial OEMs for commissioning support, operator and maintenance training, software updates, equipment upgrades, and recommendations for improving reliability.
This ongoing collaboration helps maintenance teams better understand how equipment should operate under normal conditions and what warning signs may indicate developing problems. As production demands evolve, OEMs can also recommend retrofit solutions that improve safety, productivity and energy efficiency without requiring complete equipment replacement.
OEM vs. aftermarket
If you’re sourcing replacement parts for a machine, only in the case of custom-made parts, such as grippers or mounts, is it essential to go back to the company that built them. For most other parts, you could go to the OEM manufacturers (usually indicated by labels on the components or perhaps called out in a parts list provided by the machine OEM), or there may be aftermarket alternatives.
Aftermarket parts are those made nominally to same specifications as the OEM parts. You might consider them copies, although it’s possible they’re just made to industry standards.
Two situations for considering aftermarket parts are when you need to save money (because they are usually cheaper) and when the industrial OEM parts are not available. If the industrial OEM is out of business, there may be no alternative than going to aftermarket vendors.
Aftermarket companies can sell their products at lower prices because they don’t incur the research and development (R&D) costs of the OEM manufacturers. However, a question of vital importance to those working in industrial maintenance is will aftermarket parts perform as well as the original manufacturer parts?
What is recommended will depend on your facility’s equipment, machine components, workflows, environment, and failure risk. For non-critical components where performance tolerances are less demanding, a reputable aftermarket supplier may provide an acceptable solution.
However, for equipment that directly affects product quality, worker safety, regulatory compliance, or production throughput, even small differences in dimensions, materials or manufacturing methods can have significant consequences. Maintenance leaders should evaluate the total cost of ownership rather than focusing solely on purchase price, considering factors such as expected service life, installation time, reliability, warranty coverage, and the potential cost of unexpected downtime.
If you are unsure of whether to go with OEM parts or an aftermarket supplier, talk with an ATS expert. We can provide in-depth analysis based on the technical challenges you’re facing and recommend the solution that best fits your facility. We can provide in-depth analysis based on the technical challenges you are facing and provide the right solution that best fits your particular facility.
We can provide in-depth analysis based on the technical challenges you are facing and provide the right solution that best fits your particular facility.
Importance of industrial OEM parts in industrial maintenance
Maintenance is a key part of industrial asset management. By reducing unplanned downtime and prolonging asset life, it lowers overall costs. However, maintenance costs, including expenditure on replacement parts, are always kept under review as part of managing the MRO parts budget. Three other important considerations are:
- Quality and reliability: OEMs perform R&D to ensure their products perform exactly as required. They are also very invested in product quality because their products carry their names, and they don’t want to risk any damage to their reputation. Likewise, they also strive to be dependable in terms of carrying inventory and supplying parts quickly when needed.
- Compatibility and precision: Machine OEM manufacturers build their equipment around components from manufacturers they know and trust. This ensures OEM manufacturing of components is done to the same tolerances and on the same production lines as the original parts, so replacements are a direct match for what was installed during the original build. Likewise, they will perform exactly as the original parts. Aftermarket parts may look and feel like their industrial OEM equivalents, but there may be differences. Materials and processing methods are unlikely to be identical to those of the OEM parts. (Take seals as an example: It can be very hard to know if seals from two manufacturers are made from the same material.) Consequently, even if aftermarket parts fit, they may not perform as well as the original manufacturer parts. This can mean shorter life, more breakdowns and higher maintenance costs.
- Warranty and support: Original equipment manufacturers stand behind their products with warranties and technical support. They can do this because they conducted the initial engineering and have the relevant knowledge and intellectual property. Purchasing OEM parts provides access to these services, which can save time during installation and ensures durability through correct mounting and use of preferred materials. It also means that, should problems be encountered, help is available for rapid resolution.
Another advantage of OEM parts is the consistency they provide across maintenance programs. Standardizing replacement components can help reduce uncertainty during repairs and simplify preventive maintenance planning. Technicians become familiar with installation procedures, expected performance and recommended maintenance intervals, helping improve efficiency and reduce the likelihood of installation errors. This consistency can be particularly valuable for organizations operating multiple facilities where standardized maintenance practices improve training and inventory management.
Roles and responsibilities of OEMs in manufacturing
OEM manufacturers perform the initial design and engineering, and they manufacture the parts and equipment they put their names on.
Design and engineering involve more than just creating drawings to manufacture from. Experience with previous generations of products is combined with field data to select optimal tolerances and materials. Innovative solutions are developed to meet new customer requirements and prototypes are assembled and tested.
Manufacturing processes are developed and optimized to produce the characteristics, performance and durability needed. Testing during development informs quality and inspection procedures that are implemented in production to ensure everything shipped to customers fully meets expectations.
Many industrial OEMs also maintain detailed technical documentation throughout the equipment lifecycle. This includes maintenance manuals, parts catalogs, service bulletins, recommended inspection intervals, firmware updates, and engineering change notices. Access to current documentation enables maintenance personnel to troubleshoot problems more efficiently and supports repairs completed according to manufacturer recommendations. Keeping maintenance teams informed of product improvements also helps facilities implement upgrades that improve reliability and reduce long-term operating costs.
Challenges faced by OEMs
If developing and launching high quality products wasn’t hard enough, OEMs in manufacturing operate in highly competitive and demanding environments. For most, their top three challenges are:
- Global competition: Not only do aftermarket producers seek to drive prices down by manufacturing in low-cost countries, but some are located in places where intellectual property protections are limited.
- Supply chain disruptions: OEMs tend to manufacture in a single location and distribute globally, often through resellers. This exposes them to supply chain risks and disruptions that must be managed carefully.
- Regulatory compliance: OEM products must adhere to industry regulations and standards while at the same time complying with the requirements of all the countries in which they wish to do business. However, for purchasers of OEM parts this provides assurance that they will be safe to use.
In addition, industrial OEMs must continually invest in product innovation to keep pace with advances in automation, digital connectivity and predictive maintenance technologies. Customers increasingly expect equipment that integrates with plant-wide monitoring systems, supports remote diagnostics and provides operational data for continuous improvement initiatives. Meeting these expectations requires ongoing investment in engineering talent, cybersecurity, software development, and product testing while maintaining high standards for quality and reliability.
Support for all your maintenance challenges
Spare parts are essential for timely maintenance, whether breakdown or preventive, but pressure to reduce inventories can prompt buyers to look at aftermarket sources. It’s often hard to tell if these will perform the same as OEM parts, and sometimes they can cause higher levels of breakdowns and increased maintenance costs.
Every maintenance organization should establish a structured strategy for sourcing replacement parts. Critical equipment that has a direct impact on safety, production capacity or product quality often justifies the investment in OEM components because of their proven compatibility and manufacturer support. Less critical assets, however, may offer opportunities to evaluate qualified aftermarket alternatives without significantly increasing operational risk. Conducting this evaluation as part of a broader asset management strategy helps organizations balance reliability, cost control and inventory optimization.
As leaders in industrial maintenance, ATS helps manufacturers with all aspects of MRO parts management. This extends from locating obsolete parts for older and discontinued machinery, to reviewing and sharing OEM partnership benefits. If you’re looking for help to improve maintenance effectiveness, reduce downtime and improve cost management, ATS has the skills and experience you need. Contact us to learn more.
