For facilities managers, allocating capital expenditures (CapEx) effectively is a constant battle. Traditionally, this has been done using a predetermined, set amount for each facility, or the infamous "peanut butter spread" method – where every property gets the same slice of the CapEx pie, regardless of its specific needs.
This one-size-fits-all approach might seem convenient, but it's far from efficient. Imagine a facility in a sunny California climate receiving the same amount of funding for roof repairs as a property in hail-battered Chicago. The Chicago roof will clearly deteriorate faster and require more frequent attention.
Here's the challenge: assets like roofs, pavement, and HVAC systems all degrade at different rates depending on factors like weather, usage, and age. The "peanut butter spread" method fails to account for these crucial variables, leading to potential neglect and unnecessary future expenses.
The good news? Companies like Prologis are using SITE to help them take a data-driven approach to CapEx allocation.
From Manual Mayhem to AI-Powered Efficiency
SITE empowers property owners with a smarter way to prioritize investments. It utilizes proprietary AI models to assess the condition of each property across your entire portfolio. Take pavements, for instance. SITE's AI calculates a zone specific Pavement Condition Index (PCI) for every Prologis facility, giving facilities managers a clear picture of where and when pavement repairs are most critical.
The Bottom Line: Smarter Spending, Longer Asset Life
Think of CapEx like fertilizer for your facilities – it nurtures and extends their lifespan. But just as you wouldn't spread fertilizer evenly on a garden with some plants needing more than others, a one-size-fits-all CapEx approach isn't optimal.
SITE helps you target your CapEx investments strategically, ensuring your valuable dollars go where they'll have the most significant impact.
Ready to See the Impact of Delayed Investment?
Curious how delaying CapEx can cost you more in the long run? Check out SITE's Cost To Wait calculator. This handy tool provides a glimpse into the potential financial consequences of neglecting critical maintenance.
In short, ditch the peanut butter approach to CapEx. With SITE, you can make informed decisions, maximize asset lifespan, and ensure your facilities remain productive and profitable for years to come.
About SITE
SITE is an innovative asset management and data analytics company whose team of experts develop best-in-class technology solutions by utilizing proprietary AI modeling. The SITE platform delivers proactive, predictable, and actionable data that will extend the lifespan of your assets and reduce the reliance on cumbersome "boots on the ground" assessments. SITE's current customers include the world's top commercial and industrial property owners.
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