Productivity Losses in Mechanical Engineering: How Companies Can Reduce Operating Costs
Published: November 10, 2026
“If HP knew what HP knows, we’d be three times as productive.” This quote was coined by Lew Platt, former CEO of Hewlett-Packard. More than 25 years later, the statement remains just as relevant as ever.
The problem isn’t a lack of knowledge. On the contrary: Most companies possess enormous amounts of knowledge. It’s stored in ERP systems, on file servers, in SharePoint, in emails, in technical documentation, or simply in the minds of experienced employees.
The real challenge lies in making this knowledge available at the crucial moment. Leading analysts consistently reach the same conclusion: Searching for information is one of the biggest obstacles to productivity in companies.
Accordingly, the centralized availability of expert knowledge is one of the greatest drivers of productivity in the mechanical and plant engineering industry.
When knowledge disappears
The shortage of skilled workers exacerbates this situation. With every employee who leaves the company, there is a risk that valuable experiential knowledge will be lost, such as:
- Machine expertise
- Problem-solving skills
- Process knowledge
- Customer knowledge
- Best practices gained from years of experience
The real risk isn’t the personnel change itself. The situation becomes critical when this knowledge has never been documented or made accessible to others. This leads to delays, follow-up questions, and dependence on individual experts. Even modern AI can only access knowledge that is available digitally. The more companies grow and the more complex their products, processes, and variants become, the more visible the consequences become.
The most expensive cost factor often remains invisible
Let’s take a hypothetical mechanical engineering company with 60 employees in production, service, and support. On average, each employee spends only 30 minutes a day researching information. This estimate is intentionally conservative; many studies suggest significantly higher figures.
With imputed labor costs of 50 euros per hour, this results in:
- 1,500 euros in lost productivity per day
- approximately 375,000 euros per year
And that doesn’t even take into account the associated costs:
- Duplicate work
- Quality issues
- Longer training periods
- Wrong decisions based on outdated information
- Consultations with experts
- Production interruptions
Thus, the question is no longer whether knowledge management is cost-effective, but rather: What does it cost to do without it?
Four Levers for Measurable Business Benefits
Companies that systematically leverage their operational knowledge derive benefits primarily through four mechanisms:
1. Centralized access to information
Instead of switching between different systems, employees gain access to the information they actually need.
The result:
- shorter search times
- faster decisions
- higher productivity
2. Digitize experiential knowledge
Knowledge is no longer limited to individual employees. The insights of experienced employees are documented, structured, and made available to the entire company.
The result:
- Reduced reliance on experts
- Less loss of knowledge
- Faster onboarding of new employees
3. Establish a knowledge cycle
New insights emerge every day. It is crucial that this knowledge is not lost but flows directly back into the knowledge base. This is how a learning organization develops step by step.
4. Use AI Wisely
Generative AI only realizes its full potential when built on a high-quality knowledge base.
When relevant information is structured and readily available, knowledge-intensive processes can be specifically supported or partially automated.
Knowledge as a productivity driver rather than a documentation task
Many companies still view knowledge management as a documentation project. In reality, it is a productivity project. Modern knowledge platforms link information from various sources and present it in context. Employees no longer need to know where information is stored. They receive the answer directly, along with the underlying source. As a result, knowledge transforms from an archive into a productive tool.
And this is precisely what is evident across various areas of the company.
Even a few minutes of machine downtime can result in significant costs.
When solutions are immediately available, teams can:
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Resolve issues faster
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Reduce scrap
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Increase machine availability
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Shorten ramp-up times
Instead of waiting for callbacks or experts, proven solutions are immediately available.
You don’t have to constantly win over satisfied customers, but the service must be right. That’s why many knowledge management projects start with customer service, as this is where cost-saving potential can be realized most quickly.
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Faster responses
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Fewer escalations
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Consistently high-quality responses
At the same time, knowledge management lays the foundation for digital self-service offerings that customers can use on their own.
Quality departments often have thousands of inspection reports, complaints, and audit results.
The problem: The insights gained from these are rarely reused consistently. With a central knowledge base, similar error cases can be identified within seconds. Measures that have already proven effective can be implemented immediately.
This reduces:
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Rework
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Complaints
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Testing effort
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Quality costs
Technical writing teams are required to produce more and more content in ever-shorter time frames.
At the same time, a large portion of the relevant knowledge already exists within the company:
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Service reports
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Training materials
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Videos
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Expert interviews
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Project documentation
Those who make smart use of this information can create documentation more quickly, simplify updates, and significantly increase the reuse of existing content.
The actual business case
Many companies ask how much knowledge management costs.
Instead, they should be asking a different question:
How much productivity is lost today because knowledge is being searched for instead of being used?
The greatest potential for savings comes from:
- Shorter search times
- Faster problem-solving
- Lower error costs
- Less duplication of work
- Faster onboarding
- Better knowledge transfer
That is precisely why modern knowledge management is not an IT project, but a strategic lever for productivity and competitiveness.
Conclusion
Knowledge is one of a company’s most valuable resources. Yet a large portion of it remains untapped in day-to-day operations.
Organizations that systematically organize, make available, and continuously expand their information can significantly reduce operating costs—not only in customer service, but also in production, quality assurance, technical writing, and consulting.
The greatest leverage often lies not in new technologies, but in finally making effective use of existing knowledge.
Empolis
