In industry, projects are not only completed – they are also postponed, rescheduled, or completely stopped.
This happens through budget approvals, strategy changes, customer cancellations, supply chains, location decisions, or technical changes.
What is regularly underestimated in this context: the components already procured.
Electric motors, pumps, frequency converters, complete drive units – delivered, stored, documented. Technically flawless. Operationally unused.
And this is precisely where hidden costs arise.
1) What typically ends up in storage after a project is stopped
The reality usually looks like this:
Overorders / Safety Stocks (for mounting buffers)
Reserve equipment (for commissioning + replacement)
Partial deliveries (Project was stopped, but goods have already arrived)
Changes in Engineering (different motor, different inverter, different power class)
Customer/specification changes (new specification, old goods remain unused)
Double stockpiling (parallel new generation + old generation)
The result is often a mixture of:
original packaged components
New parts with no running time
cleanly stored spare and reserve items
palletized series (identical items)
2) The real cost driver: not the purchase price
Many companies only look at the purchase price and say:
"It's just lying around. Maybe we'll need it later."
But the real costs are:
Capital commitment
Money is tied up and not working. With recurring projects, this adds up.
Storage area and handling
Space, storage, relocation, counting, inventory, insurance, internal logistics – it all costs money, every month.
Diffusion of responsibility
Project team gone, purchasing not responsible, engineering says "don't touch it", warehouse says "it's in the way". Result: standstill.
Value/market risk
Type change
Discontinuations
new generations
declining demand for niche variants
The longer it lies dormant, the more often it becomes a "safe reserve". non-marketable special stock.
3) Why drive technology is so frequently affected
The probability of overhangs is particularly high in motors, pumps and inverters because:
They need to be procured early (long delivery times, critical path sections)
Performance and design can change rapidly due to engineering modifications.
Projects are often designed "to play it safe".
Spare parts packages can be ordered in parallel.
And: Drive technology is often standardized and marketable, if you evaluate them correctly:
clear type plates
defined series/variants
International demand (replacement, retrofit, existing machines)
4) The 3 most common mistakes after project cancellation
Mistake 1: "We'll sell these separately later."
Sounds logical, but rarely works.
Individual sales take time, require data preparation, communication, shipping, and complaint management.
Mistake 2: Writing everything off or scrapping it.
This is the most expensive option – especially for new items.
Mistake 3: No clear decision, everything remains undone.
This is the most expensive option in the long run: costs continue to accrue, while value decreases.
5) What we specifically purchase in such cases (so that suppliers can find each other)
We typically assess and take over:
Electric motors, geared motors
Pumps (e.g. Wilo & similar manufacturers)
Frequency converters / Drive technology
Complete drive units / project positions
palletized series & stock
Project backlogs from plant construction, maintenance, modernization
Important:
We are looking for not the one “gold item”, rather structured positions, which can be cleanly adopted.
6) When it's worth speaking early
As soon as any of these points apply:
Project stopped / postponed
The goods have arrived, installation is not required.
Storage is running low.
Spare parts have been lying around unused for over 12 months.
There are larger quantities of identical items.
A factory conversion/modernization is planned.
The sooner you assess, the better:
more options
higher marketability
less internal stress
Conclusion
A project cancellation is annoying – but it doesn't have to be an economic loss.
The loss only occurs when procured components not rated and simply be "dragged along".
Those who approach project backlogs in a structured manner will win:
PLATZ
clarity
liquidity
Proceedings are suspended.
