As a switchgear supplier who has worked directly with electrical contractors, plant managers, and industrial facilities for over a decade, I’ve seen firsthand how modular switchgear systems have reshaped power distribution. Early on, I was one of the first to advocate for them—their standardized parts, faster on-site assembly, and flexible configuration felt like a game-changer for projects that needed to stay on tight deadlines. But over the years, I’ve also witnessed the pitfalls that many of my own clients have run into, pitfalls that aren’t always flagged in sales brochures or initial project quotes. If you’re considering modular switchgear for your next industrial or commercial build, it’s critical to look beyond the “time and cost savings” headlines and understand the real, tangible disadvantages that could derail your operations down the line. Switchgear
Let’s start with something that hits close to home for many of my clients: long-term maintenance and serviceability gaps. Modular switchgear is built with standardized, interchangeable components—breakers, busbars, disconnects, and control modules—that snap into a pre-fabricated frame. That standardization is a selling point, but it becomes a flaw when your system has non-standard requirements or when a component fails outside of regular production runs. Last year, I had a major manufacturing client in the Midwest come to me in a panic. Their plant had a critical failure in a 2018-vintage modular breaker module. The manufacturer had discontinued that exact module, and the supplier they’d originally worked with didn’t keep spare parts for 3-year-old units. The client ended up having to remove an entire 6-foot section of the switchgear to replace the broken part—something that would have taken 4 hours if a custom, old-school switchgear design was used, but took 2 full days because they had to source a compatible cross-brand module, re-calibrate the busbar connections, and get a third-party inspector to sign off on the non-standard swap. Custom switchgear, by contrast, is built to a facility’s exact specs, with parts that are either kept in stock for 10+ years or can be re-machined on-site without cross-brand compatibility headaches. For facilities that run 24/7—think food processing plants, data centers, or refineries—this kind of unplanned downtime isn’t just an inconvenience; it can cost tens of thousands of dollars per hour.
Next, there’s the issue of limited customization that leads to inefficient space and power usage. Modular systems are designed to be “one-size-fits-most,” which means their busbar sizing, circuit layout, and component spacing are standardized to fit a range of project footprints. But not every facility has a standard layout. Last quarter, I worked with a small hospital that had a tight, irregularly shaped utility room in their basement. They wanted modular switchgear because it could be installed quickly to replace an aging system before a state inspection deadline. But when we tried to fit the standard modular unit, it left 12 inches of unused space on one side and didn’t have room for a dedicated circuit for their new MRI machine—something their old, custom switchgear had accommodated easily. The solution? We had to order a custom adapter plate, which added $1,800 to the project and delayed installation by 3 days. For many clients, this means over-sizing the modular system to fit their unique needs, or under-sizing and forcing circuits to share space—both of which create safety risks and inefficiencies. I’ve also seen modular systems that have unused busbar capacity sitting idle because the pre-designed frame doesn’t allow for easy expansion, forcing clients to either leave valuable power on the table or buy an entirely new system when they need to add a new circuit or piece of equipment. Custom switchgear, on the other hand, is built around your exact power load and space constraints, so you only pay for what you need, and you can adjust it as your facility grows.
Then there’s the problem of safety and compliance inconsistencies, especially in older or high-risk facilities. Modular switchgear is tested by the manufacturer as a complete unit, but the individual modules aren’t always certified for independent use, or for cross-brand mixing. The National Electrical Code (NEC) has strict requirements for arc flash protection, grounding, and component spacing, and modular systems often meet base standards, but modifying even one module can push the entire system out of compliance. Last year, an industrial client of mine tried to replace a faulty module in their modular system with a cheaper off-brand part to save money. Within 6 months, they had an arc flash incident that damaged 3 circuit boards and injured one of their electricians. The inspector found that the cross-brand module didn’t have the same arc-resistant enclosure rating as the original, and the modified busbar connections created a hot spot that caused the failure. With custom switchgear, every component is specified and tested to work together, and modifications can be made to meet the exact compliance requirements of your local authority having jurisdiction (AHJ)—something that’s not always possible with modular units, since they’re built to a generic set of standards. For facilities in high-risk sectors like energy or healthcare, the cost of non-compliance—fines, shutdowns, or safety incidents—far outweighs any upfront savings from modular switchgear.
Another disadvantage that’s often overlooked is the higher total cost of ownership (TCO) over the system’s lifecycle. Many clients are drawn to modular switchgear because the upfront purchase and installation costs are 10-15% lower than custom systems. But when you factor in maintenance, spare parts, and unplanned downtime, that gap narrows dramatically. I track TCO for all my clients over a 10-year period, and on average, modular switchgear has a 22% higher TCO than custom systems for facilities that run 8,000+ hours per year. Why? Because spare parts for modular systems are often more expensive than custom parts (they’re made in bulk, so manufacturers can charge a premium for replacement units), and the standardized design means that when one part fails, the entire module often needs to be replaced, not just the faulty component. Last year, a data center client replaced a faulty breaker in their modular system—instead of just swapping the breaker, they had to replace the entire 3-foot module, which cost $4,200, compared to $1,100 for a custom breaker in their old system. For facilities that need regular maintenance (which most do), these costs add up quickly. Modular systems also have shorter lifespans on average—around 20 years, compared to 25-30 years for well-built custom systems—so you’re likely to replace the entire system sooner, adding even more to your long-term costs.
There’s also the issue of vendor lock-in, a problem that’s become more prevalent as modular switchgear manufacturers consolidate over the past decade. Most modular systems are proprietary—they’re designed to only work with parts from the same manufacturer. So if you buy a modular switchgear unit from Company A, you can’t buy a replacement module from Company B without voiding the manufacturer’s warranty and risking compliance issues. This means you’re tied to one vendor for the life of your system, with no room to negotiate on pricing for spare parts, or switch to a newer, more efficient model if your needs change. Last year, a client I’d worked with 5 years prior came to me because their original modular vendor had raised spare part prices by 35% and stopped offering a key service that the client needed. The client had to remove the entire modular system and switch to a custom design, a project that cost them 20% more than if they’d gone custom in the first place, and took twice as long to install. Custom switchgear, by contrast, uses standard, industry-approved components from multiple manufacturers, so you have the flexibility to source parts from anywhere, negotiate pricing, and switch vendors if needed.
Now, I want to be clear: modular switchgear isn’t always a bad choice. For small, temporary projects, or facilities with very standard power needs that don’t anticipate major changes over the system’s lifespan, modular can be a solid, cost-effective option. But for most industrial, commercial, and institutional facilities—especially those with unique layouts, high power demands, or long-term operational goals—the disadvantages far outweigh the upfront savings.
If you’re evaluating your power distribution system and want to avoid the pitfalls of modular switchgear, or you’re looking to upgrade to a system that’s tailored to your exact needs, I’d be happy to connect with you to discuss your project. We work with clients across a range of sectors, from manufacturing to healthcare to data centers, and we design custom switchgear that meets all safety, compliance, and operational requirements, while keeping long-term TCO in mind. Reach out to start a conversation about what’s right for your facility.
Busway References:
- National Electrical Code (NEC) 2023, Article 409: Switchgear, Switchboard, and Motor Control Centers.
- Electrical Construction Maintenance (EC&M) Magazine, 2022: “Total Cost of Ownership: Modular vs. Custom Switchgear for Industrial Facilities.”
- Occupational Safety and Health Administration (OSHA) Publication 3498-18: Arc Flash Hazard Recognition and Control.
- IEEE Industry Applications Society (IAS) Transactions, 2021: “Custom vs. Modular Switchgear: Reliability and Maintenance Comparisons.”
- U.S. Energy Information Administration (EIA), 2023: Industrial Facility Power System Efficiency Benchmarks.
Jiangsu Zhongrui Electric Group Co., Ltd.
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