To upgrade or not to upgrade - That's the question

Every industrial business eventually reaches a crossroads. Should you continue using existing electrical equipment, replace it with new systems, or opt for refurbished alternatives? The decision requires a careful balance between technical ambition and financial discipline. Two senior leaders in the automation industry offer insight into how that balance works in practice: Mauro Magarelli, Plant Manager at Yanfeng Italy, and Mario Napoli, Procurement Leader at O I Italy.

For technical teams, performance and competitiveness are central. Mauro Magarelli is clear about his priorities: “I would always prefer to use the best technology available. The market demands advanced technology to maintain efficiency and quality, and if you don’t have it, you are falling behind. The primary factor is competitiveness.” From an engineering standpoint, upgrading to the latest systems often seems like the natural choice.

From the procurement side, the approach is more analytical. Mario Napoli explains that decisions are guided by structured evaluation. “Our decision-making process regarding whether to retain existing equipment, invest in new systems, or procure refurbished alternatives is guided by a structured evaluation of the total cost of ownership, asset lifecycle optimisation, and sustainability KPIs.” 

For Napoli, total cost of ownership is key. Downtime risk, integration costs, lifecycle optimisation, and long term financial impact are all considered before making a choice. As he puts it, decisions are always data driven.

Sustainability has become a strategic factor in these decisions. Energy efficient equipment can reduce emissions and support climate targets. Napoli confirms:“Sustainability targets have become a strategic driver in our procurement process. In most cases, we apply internal carbon pricing or sustainability scoring to quantify the environmental cost of procurement choices.” 

Refurbishment plays an important role here. It extends product lifecycles, reduces electronic waste, conserves resources, and lowers carbon footprints. Regulatory frameworks and ESG expectations are accelerating this shift toward circular solutions. 

Economic uncertainty and supply chain disruptions have made frequent replacement less realistic. As a result, refurbishment is gaining ground. Magarelli acknowledges its value: “When sourced from reliable partners, it offers a cost-effective way to maintain competitiveness without compromising on performance.” 

Napoli takes a similar view from a financial angle: “As a first-line strategy, we always prioritise the repair of spare parts, because this is the most cost-effective approach. However, when changing equipment is unavoidable, refurbishment is a great option. It’s basically the same as new equipment but at a lower cost, so why not?” Professional refurbishment involves standardised processes, component replacement, comprehensive testing, and quality assurance. It delivers performance comparable to new equipment, often at significantly lower cost. 

While technical teams may lean toward new technology and finance teams toward cost control, both ultimately share the same objective: long term performance and resilience. Napoli summarises this balance clearly: “We make decisions based on both technical value and business impact.” 

Magarelli adds that collaboration between departments is smooth when decisions are based on measurable outcomes and structured evaluation. In today’s industrial landscape, the question is no longer simply whether to upgrade. It is how to make the smartest choice based on competitiveness, total cost of ownership, sustainability, and risk. With professional refurbishment now offering quality, cost efficiency, and environmental benefits, finding common ground has never been easier.