This article introduce us the profit earning mechanism in the elevator industry. People usually think that the biggest proportion of profit of a manufacturer is the sale of their products, but lift producers show us another great source of income, the maintenance of products.

Maintenance of products generates a great amount of profit because the marginal cost is small, mostly the labour cost of and the production cost of spare parts. However, it needs a huge network of technicians if your products are globally sold. This creates a significant enter barrier for the industry, help producers hold the domination situation.

In my opinion, in order to create more profit, lift producers should make use of their existing huge and well spread service network, extent their business into new areas such as temperature and humid control or other smart electronic control system for buildings.

Source: http://www.economist.com/news/business/21573568-things-are-looking-up-liftmakers-top-floor-please