Sunk Costs and Second Lives: The Hidden Economics of Mid-Life Equipment Upgrades
When aging industrial equipment reaches a crossroads, the instinct to retrofit rather than replace can appear financially sound on the surface. But beneath the initial cost comparison lies a complex web of integration risks, compatibility failures, and workforce retraining demands that frequently push retrofit budgets well past the price of a new system. Engineering teams that approach this decision without a structured, data-driven framework often discover the true cost only after the work is d