Executive Summary
Equipment and machinery businesses face significant challenges when scaling operations. As organisations grow from $2M to $50M in annual revenue, they often encounter systematic inefficiencies—disconnected systems and paper-based processes that worked for smaller operations but become substantial barriers to growth.
This white paper examines how equipment-focused businesses can leverage technology platforms to achieve sustainable growth without the proportional increase in administrative overhead typically associated with expansion. Drawing on industry research, we identify the key technology enablers that allow these businesses to adapt to increasing transaction volumes, new equipment types, and expanding service territories without requiring system replacement or major reconfiguration.
The evidence demonstrates that leading equipment and machinery businesses are achieving positive returns on investment within 12-18 months through reduced administrative costs, improved cash flow, increased service revenue, and higher equipment utilisation rates. By implementing scalable technology platforms, these organisations are creating sustainable competitive advantages in increasingly digitalised markets.
The Context: Growth Challenges in Australian Equipment Businesses
The equipment and machinery sector in Australia faces a complex set of market conditions that make scaling operations particularly challenging. Recent research from CommBank's Manufacturing Insights report reveals that 71% of businesses expect fixed or variable costs to rise, with energy costs, inflation, and interest rates having the most significant industry impact. At the same time, 62% of businesses report observing changing customer demands around pricing, order frequency, and spending levels (CommBank, 2024).
Labour and skills shortages compound these challenges, with 56% of businesses identifying labour skill level or availability as the primary productivity inhibitors. Despite these pressures, most businesses are targeting steady growth in output and revenue, with 61% planning to increase production levels (CommBank, 2024).
For equipment-focused businesses specifically, these market conditions create a scaling dilemma: how to grow operations to meet demand while controlling costs and overcoming labour constraints.
Common Scaling Barriers
As equipment businesses grow, they typically encounter specific operational barriers that limit scaling efficiency:
1. Disconnected Operational Systems
According to KPMG's global tech report, significant maturity gaps exist in supply chain, procurement, and finance functions that hinder the full realisation of digital potential in manufacturing organisations. The report notes that "the true potential of AI is realised when data from disparate systems, such as customer relationship management and procurement platforms, is aggregated and analysed holistically" (KPMG, 2025).
For equipment businesses, these system disconnects often occur between:
- Equipment sales and service records
- Rental fleet management and maintenance scheduling
- Field service operations and parts inventory
- Customer information and financial systems
2. Paper-Based Processes That Don't Scale
The CommBank report identifies that many manufacturers and distributors still rely heavily on paper-based processes. These manual workflows may be manageable for smaller operations but become significant bottlenecks as transaction volumes increase. The research shows that 34% of businesses are implementing digital technology adoption and related reskilling as a key tactic to improve productivity (CommBank, 2024).
3. Limited Operational Visibility
Without integrated systems, management lacks real-time insights across expanded operations. KPMG's research emphasises that "to make their businesses more profitable and customer centric, manufacturers need to keep increasing their visualisation capabilities and workflows to facilitate data-led decision-making and ensure these insights reach the right employees at the right time" (KPMG, 2025).
4. Inefficient Resource Allocation
The CommBank report indicates that 39% of businesses are implementing tighter inventory management systems to improve productivity, highlighting how disconnected systems can lead to inefficient resource allocation (CommBank, 2024).
5. Administrative Overhead Growth
As operations scale, equipment businesses often find administrative overhead growing proportionally or even faster than revenue. This challenge is reflected in the Deloitte Manufacturing Industry Outlook, which notes that manufacturers are increasingly implementing "manufacturing operations management and manufacturing execution systems that can connect the enterprise to the shop floor and provide visibility into data across the organisation" to address this issue (Deloitte, 2025).
The Digital Maturity Advantage
Research consistently shows that digital maturity correlates with business performance and scaling capability. Deloitte's Digital Maturity Index 2023 survey found that 98% of manufacturers have started their digital transformation journey (compared with 78% in 2019), focusing on cost optimisation, operational efficiency, product innovation, and improved customer experience (Deloitte, 2025).
For equipment businesses, the data suggests several key scaling advantages from digital maturity:
1. Productivity Enhancements
The CommBank research shows that businesses investing in digital technology adoption are seeing significant productivity improvements. This is particularly evident in equipment businesses where digital tools can automate many administrative tasks, allowing staff to focus on higher-value activities (CommBank, 2024).
A real-world example of this productivity enhancement comes from Manuko, a food manufacturing business profiled in the CommBank report. While not an equipment business specifically, Manuko's experience demonstrates how automation can support scaling: "We changed our system and began using a platform, Ordermentum, which streamlined our wholesale ordering process. It has automated steps like payments, which has saved us time in the delivery cycle" (CommBank, 2024).
2. Supply Chain Optimisation
According to the KPMG report, supply chain integration platforms and track-and-trace solutions for supply chain visibility are among the top-rated technologies expected to have the most impact over the next 3-5 years. For equipment businesses, these capabilities are particularly valuable for managing parts inventory, equipment deliveries, and maintenance scheduling (KPMG, 2025).
3. Enhanced Customer Responsiveness
Deloitte's research indicates that industrial product manufacturers are increasingly enhancing the digital connection to their products to gather usage and operational performance data. This connection enables equipment businesses to be more responsive to customer needs, often proactively addressing issues before they become problems (Deloitte, 2025).
4. Data-Driven Decision Making
The Manufacturers' Monthly report highlights how predictive analytics is transforming manufacturing operations: "Predictive analytics by creation of digital twins of physical assets, enabling simulation and analysis to optimise performance and predict failures" (Manufacturers' Monthly, 2024). For equipment businesses, these capabilities provide the insights needed to make informed decisions about resource allocation, maintenance scheduling, and fleet optimisation.
Business Model Evolution for Sustainable Scaling
Technology alone is not sufficient for sustainable scaling. The EY business model innovation report highlights how manufacturers need to evolve their business models to create and capture value in new ways: "Business model innovation can occur on many fronts, including a company's customer base or relationship model; offerings (e.g., a manufacturer expanding into services or experiences); commercial and revenue models; and core competencies" (EY, 2022).
For equipment businesses, this evolution often involves transitioning from transactional equipment sales to ongoing service relationships that generate more predictable revenue with lower incremental delivery costs.
From Products to Services
The EY report notes that "many manufacturers have succeeded at business model innovation by evolving from a product-based model to a new service- or subscription-based model. These new models frequently draw on existing capabilities while deepening or creating new customer or consumer relationships and providing unparalleled ongoing insights into how these constituencies define value" (EY, 2022).
A real-world example of this transition comes from the ball bearing manufacturer cited in the EY report. The company developed a subscription-based model that positioned it to sell a service based on machinery performance rather than just selling ball bearings. "This new position also afforded greater control over sales of the ball bearings, further enhancing the manufacturer's competitive position" (EY, 2022).
Data-Driven Value Creation
The KPMG report emphasises the growing importance of data as a source of value: "To make their businesses more profitable and customer centric, manufacturers need to keep increasing their visualisation capabilities and workflows to facilitate data-led decision-making" (KPMG, 2025).
For equipment businesses, this can involve developing new services based on equipment performance data, such as predictive maintenance, fleet optimisation, or utilisation analysis. The real-world example from KPMG's report describes how one steel manufacturing plant is "deploying soft sensors at all stages of its manufacturing cycle" to provide opportunities for proactive interventions that preserve production stability (KPMG, 2025).
Ecosystem Partnerships
The EY report highlights the importance of ecosystem partnerships for business model innovation: "Sometimes a value creation opportunity demands capabilities outside the company's experience or beyond its sector. In these cases, manufacturing leaders should focus on building or joining an ecosystem" (EY, 2022).
For equipment businesses, strategic partnerships can extend capabilities without proportionally increasing overhead. The EY report cites research showing that "2 in 3 manufacturing companies say that ecosystems are more effective than traditional growth strategies" (EY, 2022).
Key Technology Enablers for Scaling Equipment Businesses
Based on the research, several specific technologies emerge as critical enablers for equipment businesses looking to scale efficiently:
1. Integrated Business Systems
The Deloitte report emphasises the importance of "manufacturing operations management and manufacturing execution systems that can connect the enterprise to the shop floor and provide visibility into data across the organisation" (Deloitte, 2025).
For equipment businesses, integrated systems provide several key benefits:
- End-to-end process visibility: Tracking equipment from initial sale through service history to eventual replacement
- Elimination of data silos: Ensuring consistent information across all departments
- Streamlined workflows: Reducing administrative overhead through automated handoffs between functions
- Improved decision making: Providing management with real-time insights across operations
2. Mobile Field Service Capabilities
The CommBank report identifies digital technology adoption as a key tactic for improving productivity (CommBank, 2024). For equipment businesses with field service operations, mobile capabilities are particularly valuable:
- Digital job cards: Eliminating paper-based workflows
- Real-time scheduling: Optimising technician routes and availability
- Mobile access to equipment histories: Improving service quality and first-time fix rates
- On-site documentation: Capturing photos, customer signatures, and parts used
- Immediate invoice generation: Reducing invoice-to-payment time
3. IoT and Connected Equipment
According to KPMG's research, 5G connectivity and Internet of Things technologies are among the top-rated technologies expected to have significant impact in the coming years (KPMG, 2025). For equipment businesses, connected equipment enables:
- Real-time monitoring: Tracking equipment location, status, and performance
- Predictive maintenance: Identifying potential failures before they occur
- Usage-based billing: Accurately charging for actual equipment utilisation
- Performance optimisation: Adjusting settings based on operating conditions
- Fleet management: Optimising deployment and utilisation across multiple sites
The Manufacturers' Monthly report highlights how IoT devices "enable real-time monitoring and control of manufacturing processes, leading to improved efficiency and predictive maintenance" (Manufacturers' Monthly, 2024).
4. Advanced Analytics and AI
KPMG's research indicates that AI and machine learning, along with advanced analytics, are among the technologies expected to have the most significant impact on industrial manufacturing in the next 3-5 years (KPMG, 2025). For equipment businesses, these capabilities provide:
- Predictive maintenance insights: Identifying equipment likely to fail
- Optimised scheduling: Matching technician skills with service requirements
- Inventory optimisation: Predicting parts requirements based on service patterns
- Customer insights: Identifying patterns in equipment usage and service needs
- Performance benchmarking: Comparing equipment performance across sites and applications
The real-world example from the Manufacturers' Monthly report describes how "AI machine learning algorithms optimise production schedules, quality control, and supply chain management" (Manufacturers' Monthly, 2024).
5. Customer Self-Service Capabilities
Deloitte's research indicates that industrial product manufacturers are enhancing the digital connection to their products to improve serviceability. The report notes that "customers can access portals to monitor fleet performance, schedule maintenance, and chat with company representatives to resolve issues" (Deloitte, 2025).
For equipment businesses, customer self-service capabilities reduce administrative burden while improving the customer experience:
- Service scheduling: Allowing customers to book maintenance visits
- Equipment documentation: Providing access to manuals and training materials
- Performance monitoring: Sharing real-time equipment performance data
- Parts ordering: Enabling direct ordering of replacement parts
- Invoice and contract management: Providing visibility into financial agreements
Implementation Strategy: Making the Leap to Scalable Operations
The research provides clear guidance on how equipment businesses can successfully implement technology solutions to enable scalable growth:
1. Start with Process Optimisation
According to Manufacturers' Monthly, "lean manufacturing focuses on creating more value for customers with fewer resources by identifying and eliminating non-value-adding activities" (Manufacturers' Monthly, 2024). This principle applies equally to equipment businesses looking to scale efficiently.
Before implementing new technology, the research suggests mapping current processes to identify:
- Workflows that don't add customer value
- Duplicate data entry or manual handoffs
- Information bottlenecks
- Administrative overhead that scales with volume
This process-first approach ensures technology investments address real operational constraints rather than simply digitising inefficient workflows.
2. Build a Strong Data Foundation
KPMG's research emphasises that "data quality, contextualization, and validation are the most significant obstacles to AI implementation" (KPMG, 2025). Before implementing advanced analytical capabilities, equipment businesses need to establish a solid data foundation:
- Data standardisation: Ensuring consistent formatting and naming conventions
- Master data management: Maintaining a single source of truth for equipment and customer information
- Data governance: Establishing clear ownership and quality standards
- Integration architecture: Creating reliable connections between systems
Deloitte's research highlights the importance of the "Unified Namespace data architecture strategy [which] can provide a central source of real-time standardized data that can be utilised by a variety of systems across the business" (Deloitte, 2025).
3. Prioritise High-Impact Use Cases
The KPMG report recommends that organisations "identify and pursue early use cases that can have a direct impact on revenue, costs, risk or other important outcomes" (KPMG, 2025). This advice is particularly relevant for equipment businesses, where the research suggests several high-impact starting points:
- Mobile field service automation: Eliminating paper-based service workflows
- Equipment monitoring: Implementing basic IoT capabilities for critical assets
- Inventory optimisation: Improving parts availability for service operations
- Automated invoicing: Reducing invoice-to-payment time
- Customer portals: Enabling self-service for routine interactions
Focusing on these high-impact areas builds momentum and generates returns that can fund subsequent investments.
4. Address Skills and Change Management
The CommBank report identifies that 43% of businesses are reskilling staff as a top tactic to improve productivity (CommBank, 2024). As equipment businesses implement new technologies, the research highlights the importance of:
- Technical training: Ensuring staff can effectively use new systems
- Process education: Helping employees understand new workflows
- Cultural change: Building acceptance of data-driven decision making
- Ongoing support: Providing resources to resolve issues as they arise
The real-world example from Vitality in the CommBank report illustrates the importance of this approach: "If you have an aligned workforce that is well-educated in our social impact, it helps with productivity because they have a commitment and a passion for what the business is trying to do" (CommBank, 2024).
5. Evolve Incrementally
Rather than attempting a comprehensive transformation, the research suggests developing a phased approach that delivers incremental benefits while building toward the longer-term vision. The KPMG report recommends "a phased approach that delivers tangible ROI that helps fund subsequent investments" (KPMG, 2025).
For equipment businesses, this might involve:
- Starting with core operational systems before adding advanced analytics
- Implementing mobile capabilities for one service team before expanding
- Adding IoT monitoring to critical equipment before the entire fleet
- Building basic customer self-service before advanced performance dashboards
This incremental approach reduces risk while generating early wins that build momentum.
Measuring Success: KPIs for Scalable Growth
The research identifies several key performance indicators that equipment businesses can use to measure the success of their scaling initiatives:
1. Operational Efficiency
The CommBank report highlights productivity as a key focus area, with businesses implementing various initiatives to improve output per resource (CommBank, 2024). Relevant metrics include:
- Administrative cost ratio: Administrative expenses as a percentage of revenue
- Service efficiency: Number of service calls completed per technician
- Inventory turns: Frequency of complete inventory cycle
- Invoice cycle time: Days from service completion to invoice generation
2. Equipment Performance
The Manufacturers' Monthly report emphasises how IoT devices and predictive analytics can improve equipment performance (Manufacturers' Monthly, 2024). Key metrics include:
- Equipment uptime: Percentage of time equipment is operational
- Mean time between failures: Average operational time between breakdowns
- First-time fix rate: Percentage of service calls resolved on first visit
- Preventative vs. reactive maintenance ratio: Scheduled vs. emergency service
3. Customer Impact
The Deloitte report highlights the importance of customer experience as a driver for digital transformation (Deloitte, 2025). Relevant metrics include:
- Customer satisfaction scores: Measured through surveys and feedback
- Contract renewal rates: Percentage of service contracts renewed
- Digital engagement: Customer utilisation of self-service capabilities
- Response time: Time to address customer service requests
4. Financial Performance
The EY report emphasises the importance of financial measures for business model innovation (EY, 2022). Key metrics include:
- Revenue per employee: Measure of workforce productivity
- Service revenue ratio: Service revenue as percentage of total revenue
- Recurring revenue percentage: Subscription or contract revenue as percentage of total
- Cash flow cycle: Days from service delivery to payment receipt
Looking Ahead: The Future of Equipment Business Scaling
The research points to several emerging trends that will shape the future of scaling for equipment businesses:
1. AI-Driven Operations
The KPMG report highlights that manufacturing is "one of the three sectors most likely to be at the most mature phase of AI adoption, with 34% securing ROI on several of their AI use cases" (KPMG, 2025). As AI capabilities continue to evolve, equipment businesses can expect:
- Autonomous scheduling: AI-optimised service routing and technician assignment
- Predictive maintenance evolution: Increasingly accurate failure prediction models
- Natural language interfaces: Simplified system interaction through conversational AI
- Automated knowledge management: Systems that learn from technician actions and feedback
2. Advanced Connectivity
The Deloitte report notes that 34% of industrial product manufacturers plan to invest in 5G technology over the next one to three years (Deloitte, 2025). This enhanced connectivity will enable:
- Real-time remote diagnostics: Immediate expert support for field technicians
- Augmented reality guidance: Visual assistance for complex repairs
- Video-enabled knowledge transfer: Capturing expertise for training and troubleshooting
- Enhanced equipment monitoring: More frequent and detailed performance data
3. Sustainability Integration
The CommBank report indicates that 81% of businesses have implemented at least some sustainability initiatives, with efficiencies as the top business goal (CommBank, 2024). For equipment businesses, sustainability focus will drive:
- Energy-efficient equipment options: Low-emission alternatives to traditional machinery
- Lifecycle management services: Extending equipment life through optimised maintenance
- Circular economy initiatives: Refurbishment and component recycling programs
- Environmental impact reporting: Tracking and reporting equipment emissions
4. Ecosystem Expansion
The EY report emphasises that "ecosystems combine a broad range of skills, technologies, products, services, experiences and data from multiple value chain participants" (EY, 2022). For equipment businesses, ecosystem participation will enable:
- Integrated service networks: Coordinated service delivery across geographic regions
- Shared data insights: Aggregated performance benchmarking across equipment fleets
- Complementary service offerings: Bundled solutions addressing broader customer needs
- Joint innovation: Collaborative development of new equipment and service offerings
Conclusion: The Imperative for Scalable Operations
The research makes clear that equipment businesses face a critical choice as they grow: invest in scalable operational capabilities or accept inherent limits to growth. Those that successfully implement the technologies and strategies identified in this research can achieve sustainable growth without the proportional increase in overhead that traditionally constrains expansion.
As the EY report concludes, "The true value [of technology solutions] lies not just in solving today's operational challenges, but in building a platform for sustainable growth and market leadership" (EY, 2022).
By focusing on integrated systems, mobile capabilities, connected equipment, advanced analytics, and customer self-service—all underpinned by strong process design and change management—equipment businesses can break through traditional growth barriers and establish scalable operations that support continuing expansion.
The companies that embrace this approach will be positioned not just to grow but to fundamentally transform their market position, creating competitive advantages that become increasingly difficult for slower-moving competitors to overcome.
References
CommBank. (2024). Manufacturing Insights 2024: Gearing up for growth. Commonwealth Bank of Australia.
Deloitte. (2025). 2025 Manufacturing Industry Outlook. Deloitte Insights.
EY. (2022). Why industrial companies need to lead business model innovation. Ernst & Young.
KPMG. (2025). KPMG global tech report – industrial manufacturing insights. KPMG Australia.
Manufacturers' Monthly. (2024). Insights from RSM: A snapshot of the manufacturing industry. Manufacturers' Monthly.