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The Importance of Strategic CAPEX Planning

  Arthur F. Rothberg, Managing Director, CFO Edge, LLC  
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  Article Summary  
Capital expenditures are integral to the operations of most manufacturing companies, which must regularly upgrade physical assets or acquire new ones in order to remain competitive. These assets may include machinery and equipment, plant and property, and industrial buildings and warehouses.

Investments like these, of course, can be expensive, which makes strategic CAPEX planning critical for most manufacturers. Without a detailed, long-range plan for allocating their CAPEX budgets, manufacturers can get caught in a squeeze - needing new equipment, for example, but not having a blueprint in place for how they will acquire, use and pay for it.

This article looks at how strategic capital expenditures planning can be implemented to cut costs and boost efficiency; replace or upgrade old assets; meet an existing customer’s new requirements or take advantage of opportunities; and gain a competitive advantage.

A strategic CAPEX plan can be a valuable business planning and growth tool for Los Angeles and Southern California CEOs and CFOs. One source for assistance in creating a strategic CAPEX plan is an outsourced CFO services provider. Such a provider will bring expertise in all aspects of CAPEX planning, helping manufacturing companies chart a strategic course for future success.

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