My lift company has gone broke, what do I do????? Prevention is better than cure!!!

The Victorian lift industry, as a part of the wider building industry, is under financial stress and staffing pressure so - be careful!

The last couple of years have seen a significant number of lift companies go into liquidation, owing significant sums to customers, the ATO and employees. The carnage has not been limited to local small lift companies, large national companies have also been going into liquidation with little warning, leaving projects across Australia with lost deposits or, partially, or uninstalled lifts. At Melbourne Elevators we receive calls regularly from distressed customers needing assistance to install or maintain their lifts.

For customers trying to decide which lift company to go with can be a challenge as it is difficult to know which company is in financial stress. My experience is that any company offering significantly lower prices is either cutting corners or they are pushing a cash flow model that will implode if there is a downturn in the market. Another “tell “, is if a company wants more than a 40% deposit or gives a discount for an early deposit. Typically, 40% covers the cost of the actual gear so the lift company is protected from a customer not completing the contract. A 40% deposit is industry standard. I have seen many companies go out of business over the last 30 years that have expanded too quickly or chased market share with low prices.

Assuming, that the customer has done all the checking they can do, and the lift company still goes broke, it is essential that the lift selected has an open IP and supply of spare parts. Many lift companies now have exclusive arrangements with supplies that prevents any other company accessing the technology and diagnostics in the controller. They also lock up the supply of spare parts so no one can buy them but through the supplier of the lift. If the customer calls a range of lift companies with the name of their supplier, they can ask if the other companies if they can maintain the equipment. If the consensus is that the lift can’t be maintained by others then, my advice, is find another lift supplier! This is especially important if the lift has been purchased and paid for but the lift company goes broke before or during installation. There are at least a 100 customer’s in the last two years in Victoria who have had the lift company go broke before completing the installation. It can cost tens of thousands of dollars and many months to sort out an uninstalled lift, if you can even get access to the technology!

Lifts are expensive and can’t just be, swapped in and out, so it is essential that they can be serviced by other lift companies with a minimum of fuss. There are not many companies that maintain good customer service for 30 years!!! You need to be free to move around maintenance companies, this is essential.

In conclusion, make sure your lift company is showing no signs of financial stress and the lift you have selected has open technology that other lift companies can access and that there is access to spare parts.

Disclosure: I am the founding Director of Melbourne Elevators. As Melbourne elevators no longer supplies new lifts to new buildings I can speak freely about the new lift industry with minimal conflict of interest.
Andrew Lewis.

Published: April 16, 2026