The Manufacturing IT Cost Calculator: What Is "Good Enough" IT Actually Costing You?
Most manufacturers know what they pay for IT. Few know what IT actually costs them. This calculator helps you quantify the hidden costs of downtime, productivity loss, and security risk - so you can make an informed decision about your technology investment.
When you think about your IT costs, you probably think about your monthly bill from your IT provider. Maybe hardware purchases. Software licenses.
But that is only part of the story.
The real cost of IT includes everything that happens because of IT - or that fails to happen because of IT problems. And for most manufacturers, those hidden costs far exceed what they pay their IT provider.
The Four Categories of IT Cost
1. Direct IT Spending (What You See)
This is the easy part to calculate:
Cost Category
Monthly Cost
IT provider/MSP fees
$_______
Software licenses
$_______
Cloud services
$_______
Hardware/equipment
$_______ (amortized)
Total Direct IT Spend
$_______
Most manufacturers pay between $150-$300 per employee per month for managed IT services. This is the number you know.
2. Downtime Costs (What Hurts Most)
This is where the real cost hides. Use this framework to calculate your downtime costs:
Step 1: Calculate Your Hourly Production Value
Annual Revenue ÷ 2,080 working hours = Hourly production value
Example: $10M ÷ 2,080 = $4,808/hour
Step 2: Estimate Your Monthly Downtime
Type of Downtime
Hours/Month
Complete production stoppage
_______ hours
Partial system outages
_______ hours
Slow system performance
_______ hours
Total Downtime Hours
_______ hours
Step 3: Calculate Downtime Cost
Hourly production value × Monthly downtime hours = Monthly downtime cost
Industry benchmarks for unplanned downtime:
Company Size
Average Downtime Cost/Hour
Small manufacturer (< 50 employees)
$1,000 - $2,500
Medium manufacturer (50-200 employees)
$2,500 - $5,000
Large manufacturer (200+ employees)
$5,000 - $50,000+
3. Productivity Costs (The Silent Drain)
IT problems do not just cause outages. They cause friction - small delays that add up to big losses.
The 10% Rule
Studies show that employees lose 10-20% of their productive time to technology friction:
Waiting for slow systems to respond
Dealing with IT issues instead of their actual job
Workarounds for problems that never get fixed
Time spent on the phone with IT support
Calculate Your Productivity Loss:
Number of employees × Average hourly wage × 160 hours/month × 10% = Monthly productivity loss
Example: 50 employees × $25/hour × 160 hours × 10% = $20,000/month
IT Time Tax:
Additionally, someone in your organization is managing IT issues instead of doing their job:
Role
Hours/Week on IT
Hourly Value
Weekly Cost
Owner/CEO
_______
$_______
$_______
Operations Manager
_______
$_______
$_______
Office Manager
_______
$_______
$_______
Other Staff
_______
$_______
$_______
Total IT Time Tax
$_______/week
4. Risk Costs (The Ticking Time Bomb)
These costs are probabilistic, but very real:
Cybersecurity Risk:
Threat
Average Cost
Probability (Annual)
Expected Annual Cost
Ransomware attack
$1.27 million
5-15% for manufacturers
$63,500 - $190,500
Data breach
$2.98 million
3-10%
$89,400 - $298,000
Business email compromise
$125,000
10-20%
$12,500 - $25,000
Compliance Risk:
Regulation
Penalty Range
If You Are Subject
CMMC (DoD contractors)
Loss of contracts
☐ Yes ☐ No
NIST 800-171
Contract termination
☐ Yes ☐ No
Industry-specific
$10,000 - $500,000+
☐ Yes ☐ No
Business Continuity Risk:
Scenario
Impact
Extended outage (1+ week)
☐ Survivable ☐ Catastrophic
Loss of critical data
☐ Recoverable ☐ Business-ending
Key system failure
☐ Workarounds exist ☐ Operations stop
Your Total IT Cost Calculation
Now let us add it all up:
Cost Category
Monthly Amount
Direct IT Spending
$_______
Downtime Costs
$_______
Productivity Loss
$_______
Risk Costs (amortized)
$_______
TRUE MONTHLY IT COST
$_______
The Multiplier Effect:
For most manufacturers, the true IT cost is 3-5x higher than their direct IT spend.
If you are paying $5,000/month for IT services but experiencing significant downtime, productivity loss, and security risk, your true IT cost could be $15,000-$25,000/month or more.
What Good IT Actually Costs
Here is what proactive, professional managed IT typically costs:
Direct Costs
Service Level
Per Employee/Month
Typical Total (50 employees)
Basic managed IT
$125 - $175
$6,250 - $8,750
Comprehensive managed IT
$175 - $250
$8,750 - $12,500
Premium (manufacturing focus)
$225 - $300
$11,250 - $15,000
What You Get
At the premium level (like Preferred Data), you should receive:
Proactive monitoring that catches 90%+ of issues before impact
Same-day response for most issues, often within hours
Strategic planning with quarterly business reviews
Security stack including endpoint protection, email security, backups
Compliance support for CMMC, NIST, industry requirements
Local presence with on-site support when needed
The ROI Math
Scenario
Monthly Cost
Result
Current (reactive IT)
$5,000 direct + $20,000 hidden = $25,000
Frustration, risk, lost productivity
Better (proactive IT)
$12,500 direct + $5,000 hidden = $17,500
Peace of mind, less downtime, lower risk
Net Savings
$7,500/month = $90,000/year
Better IT often costs less in total - even if the direct spend is higher.
Case Study: The Real Cost of "Good Enough"
Situation
A 75-employee manufacturer was paying $4,500/month for IT services. They considered it "good enough" - things mostly worked, and the provider was responsive when called.
Hidden Costs We Identified
Cost Category
Monthly Amount
Unplanned downtime (4 hours/month)
$8,000
Productivity loss (12% time tax)
$18,000
Owner time managing IT
$3,000
Security gaps (risk exposure)
$5,000 (amortized)
Total Hidden Costs
$34,000
Their True IT Cost: $38,500/month
When we showed them this analysis, they realized their "cheap" IT was costing them nearly 10x what they thought.
After Switching
Cost Category
Before
After
Direct IT spend
$4,500
$11,250
Downtime costs
$8,000
$500
Productivity loss
$18,000
$4,000
Owner time
$3,000
$500
Risk exposure
$5,000
$1,000
Total Monthly IT Cost
$38,500
$17,250
Annual savings: $255,000
Red Flags That Your IT Costs More Than You Think
Check all that apply:
☐ You have experienced production downtime due to IT issues in the last 3 months
☐ The same problems keep recurring
☐ Your staff complains about slow systems
☐ Someone in management regularly deals with IT issues
☐ You do not know if your backups work
☐ No one has discussed cybersecurity with you recently
☐ You are not sure what you would do if ransomware hit
☐ Your IT provider only calls when there is a problem
☐ You feel like you are paying for more than you are getting
If you checked 3 or more boxes, your hidden IT costs are likely significant.
Get Your Personalized Analysis
This calculator provides estimates based on industry benchmarks. Your actual costs depend on your specific situation.
We offer a free, no-obligation IT cost analysis that:
Reviews your current IT spend - Direct costs, contracts, services
Calculates your true IT cost - The real number you should be managing
Provides recommendations - What better IT would cost and deliver
What You Will Walk Away With
A clear picture of what IT is actually costing you
Specific numbers tailored to your business
Actionable insights whether you change anything or not
No pressure - This is information, not a sales pitch
Why Preferred Data
We have been helping North Carolina manufacturers understand and optimize their IT costs since 1987. Our clients stay with us for an average of 20+ years because we deliver measurable value.
Our Approach
Honest assessment - We tell you the truth, even if it means less business for us
Manufacturing expertise - We understand production environments, not just office IT
Local presence - On-site when you need us, not just remote support
No lock-in - We earn your business every month
What Our Clients Say
"You will see an immediate improvement in your systems and processes." — Aaron D., Business Owner
"They are a great team working diligently to make our jobs easier every day." — Sarah W., Manufacturing Client (20+ year client)
Take the Next Step
Stop guessing what your IT costs. Get the real numbers.
Option 1: Free IT Cost Analysis
Schedule a 30-minute call. We will help you calculate your true IT costs using your actual numbers.
Yes. No cost, no obligation. We provide this analysis because we know that once you understand your true IT costs, you will make a better decision - whether that involves us or not.
How long does the analysis take?
30 minutes for the call. We will do the calculations and send you a summary afterward.
What information do I need to provide?
We will ask about your current IT spend, number of employees, approximate revenue, and recent IT issues. Nothing confidential required.
What if my current IT is actually fine?
Then you will know that, and you will have data to prove it. That is valuable information too.
Do you serve companies outside North Carolina?
We provide on-site support within 200 miles of High Point, NC. For remote-only support, we can work with companies anywhere.
Your IT is either an asset or a liability. Know which one you have.
Call (336) 886-3282 or schedule online to get your free IT cost analysis.
