Long-Term Asset Management
Striking the right balance of new and used equipment, long term usage and rental, staying on the cutting edge of technology, and keeping it until the wheels fall off is an increasing problem for mid-sized and large companies. The commercial equipment you count on and capex needs of your business only increase as technology pushes greater performance efficiencies. Despite almost universal acknowledgment of this, most companies do a poor job managing their long-term asset needs. Recent research shows that:
71% of businesses decide to replace commercial equipment in the break/fix moment.
Being reactive in any area of business is fraught with challenges. But waiting until the break/fix moment for your commercial equipment replacement is extremely expensive. The following are just some of the expenses and operational burdens that this lack of planning might lead to:
- Loss of production (downtime)
- Rental (in some asset classes)
- Emergency maintenance
- Loss of secondary market value
- Increased administrative burden
- Employee dissatisfaction (even turnover in some cases)
Just one of these issues could drive significant unplanned expenses into your operations. And it’s all completely unnecessary. Could a proactive approach to asset management reduce expenses, increase operational efficiency and even improve financial measures?
Life cycle management allows asset managers to go beyond the break/fix event-driven replacement cycle. Establish a program to acquire, finance, manage, and dispose of assets in all categories of your capex need. Whether it’s how to determine the optimal life cycle in a certain asset for your company, when to buy new or used, or the savings derived from these activities, these insights can help you build a long-term strategy.
We can help. At TimePayment, we help businesses execute a more affordable and effective plan to manage assets and move beyond the pain of the break/fix moment.