Many elevator OEMs focus heavily on winning new installations but fail to protect one of their most valuable long-term revenue streams: service contracts. As warranty periods expire, building owners increasingly evaluate alternative providers, creating significant risk to recurring aftermarket revenue. Retaining service business requires stronger customer relationships, clear service differentiation, and a proactive engagement strategy throughout the elevator lifecycle.
The elevator OEMs that succeed in the aftermarket will be those that build lasting customer relationships, demonstrate ongoing value, and treat service as a strategic growth driver.
Most elevator manufacturers focus heavily on winning new projects. Sales teams work hard to secure contracts, installation teams ensure projects are delivered on time, and everyone moves on to the next opportunity.
But there is a problem hiding in plain sight.
Many OEMs are losing one of their most valuable revenue streams shortly after installation: service contracts.
While the initial equipment sale generates revenue once, maintenance and service contracts can generate income for years or even decades. Yet many building owners switch to independent service providers as soon as warranty periods end, leaving OEMs with a shrinking share of the aftermarket business.
The question is: why does this happen?
Installing a new elevator is a significant milestone, but it represents only a small part of the asset’s lifetime value.
Once an elevator enters operation, it requires regular maintenance, repairs, inspections, spare parts, and eventually modernization. All of these services create recurring revenue opportunities.
For OEMs, this aftermarket revenue is often more predictable than new equipment sales. It helps create steady cash flow and reduces dependence on fluctuations in construction activity.
However, many manufacturers still prioritize acquiring new projects over retaining service customers. As a result, they invest heavily in winning installations but not enough in protecting the revenue that comes afterward.
During the warranty period, building owners usually rely on the OEM for service and support. There is little competition because the relationship is already established.
The situation changes when the warranty expires.
At that point, facility managers and building owners begin comparing alternatives. They receive proposals from independent service providers, evaluate pricing, and assess whether they need to continue working with the original manufacturer.
If the OEM has not built a strong relationship during the warranty period, the customer may see little reason to stay.
What was once a long-term revenue opportunity suddenly becomes a contract that is up for grabs.
DATOMS helps elevator manufacturers gain real-time visibility into their installed base, improve service responsiveness, strengthen customer relationships, and optimize maintenance operations. By detecting issues before breakdowns occur, OEMs can improve AMC retention, reduce repeat service visits, and grow recurring aftermarket revenue.
Book a Demo →Independent elevator service providers have become increasingly competitive.
Many of them offer maintenance services for multiple elevator brands, making life easier for building owners managing mixed portfolios. Instead of dealing with different service companies for different elevators, they can work with a single provider.
These companies also position themselves as flexible, responsive, and cost-effective alternatives to OEMs.
Whether this perception is accurate or not, it influences buying decisions. When customers believe they can get similar service at a lower cost, they become more willing to switch providers.
As a result, OEMs are facing stronger competition than ever in the aftermarket.
One of the biggest challenges facing the industry is that maintenance services are increasingly viewed as a commodity.
From a customer’s perspective, many maintenance contracts look similar on paper. Routine inspections, preventive maintenance visits, and compliance checks often appear nearly identical regardless of the provider.
When customers struggle to see a meaningful difference between service offerings, price becomes the deciding factor.
This creates pressure on OEMs.
Even when manufacturers have factory-trained technicians, deeper product expertise, and access to original parts, customers may not fully understand the value of those advantages.
Without a clear explanation of why their service is different, OEMs can find themselves competing primarily on cost.
Today’s building owners expect more than basic maintenance.
They want transparency, faster communication, clear reporting, and service providers who understand their business needs.
Many customers also prefer flexible agreements rather than rigid long-term contracts.
When service relationships feel transactional, customers are more likely to explore alternatives. On the other hand, when they feel supported and informed, they are more likely to remain loyal.
The reality is simple: retaining service revenue depends as much on customer experience as it does on technical expertise.
The good news is that losing service contracts is not inevitable.
OEMs can improve retention by focusing on customer relationships throughout the entire lifecycle of the elevator, not just when contracts are up for renewal.
This starts with staying engaged during the warranty period, communicating regularly with customers, and demonstrating the value of manufacturer-backed service.
It also means making service offerings easier to understand, providing greater transparency, and creating flexible contract options that align with customer needs.
Most importantly, OEMs must shift their mindset. Service should not be treated as an after-sales activity. It should be viewed as a strategic business function that drives long-term growth.
The elevator industry is becoming increasingly competitive, and winning new installations alone is no longer enough.
The manufacturers that succeed in the coming years will be those that build strong relationships after installation, not just during the sales process.
Because the most valuable customer is not the one who buys an elevator today.
It’s the one who continues to trust you with service, maintenance, and support for the next twenty years.
Retaining service contracts starts with better visibility into your installed base, stronger customer engagement, and a proactive service strategy.
The future of elevator aftermarket growth belongs to OEMs that focus not only on winning new installations but also on building lasting customer relationships. By improving service visibility, strengthening engagement, and delivering consistent value throughout the elevator lifecycle, manufacturers can protect recurring revenue and create sustainable long-term growth.
Many elevator OEMs focus heavily on acquiring new projects but invest less in customer engagement after installation. Once warranties expire, building owners often compare alternative service providers based on cost, flexibility, and perceived service quality.
Maintenance contracts generate recurring revenue through inspections, repairs, spare parts, and modernization services. Unlike one-time equipment sales, service contracts can provide stable income for many years.
Building owners may switch providers due to lower pricing, flexible contract terms, multi-brand service capabilities, or a lack of ongoing engagement from the original manufacturer.
OEMs can improve retention by maintaining regular communication with customers, demonstrating the value of manufacturer-backed service, increasing transparency, and offering flexible service agreements.
Aftermarket revenue creates predictable cash flow and long-term profitability. It helps manufacturers reduce reliance on fluctuating construction activity and new equipment sales cycles.
DATOMS helps elevator manufacturers gain greater control over service operations, improve customer retention, and unlock more value from their installed base.
Want to learn more? Talk to our team and discover how leading elevator OEMs are building stronger long-term customer relationships while improving service performance.
Connected elevator monitoring helps elevator manufacturers improve uptime, reduce warranty costs, enable remote diagnostics, and protect AMC revenue through real-time installed-base visibility.