3 reasons to use an engineering firm for CapEx consulting

Your capital expenditures are an essential aspect of running a successful company but mismanaged or unscrutinized, they can slowly erode your profit margin. When analyzing the various expenditures of your organization, it’s easy to get overwhelmed by the amount of data generated. The more comprehensive your understanding of equipment performance, the better you’ll be able to create an accurate budget. CapEx consulting helps companies understand their expenses and plan for future projects. Here are three reasons to use an engineering firm for CapEx consulting.

Get an in-depth understanding of your equipment performance.

Developing a CapEx budget that you can trust means having as much information as possible about your significant equipment purchases and their ongoing performance. There’s more to equipment performance than measuring quota and output. An engineering firm brings an in-depth understanding and an incisive approach to appraising equipment performance.

A controlled approach to significant capital expenditures requires organizations to make informed decisions about what equipment to replace and when. CapEx consulting looks beyond the cost of new equipment to the additional expenses which can add up, including construction, procurement, and financing costs.

Balancing the cost of replacement with depreciated performance takes experience and expertise, which an engineering firm can provide during CapEx consulting. The more thorough your understanding of your equipment performance, the better you can make decisions about what to replace and when.

Get the benefit of expertise in equipment validation and cycle development for your organization.

Having third-party expertise from CapEX consultants is invaluable when it comes to equipment validation and cycle development. Regardless if you’re purchasing new or pre-owned, experienced engineers will be able to objectively evaluate the specifications and analyze if it will perform to your organization’s requirements.

It’s easy to limit the lifespan of your equipment by pushing it past its duty cycle. Understanding how much time each aspect of your facility can spend in operation per hour is central to developing efficient logistics and optimizing the performance of your equipment.

Engineers who provide CapEx consulting look at every aspect of your facility and their inter-relationships to eliminate cost overruns from unanticipated consequences of your capital expenditures.

Get help with equipment procurement and impact assessments.

New equipment purchases often come with hidden expenses that significantly impact your CapEx budget. When you work with an engineering firm that offers CapEx consulting, they bring expertise across all aspects of manufacturing and equipment. That means they can anticipate many of the hidden costs in procurement, installation, and operation of new equipment.

Instead of exceeding your CapEx budget, you can get a macro-scale understanding of your expenditures for equipment replacement. Engineer consultants have been through equipment procurement across industries, so they bring the benefit of experience to a process that many companies have limited or no experience in handling.

As equipment ages, performance may decrease as breakdowns and repairs increase. Replacing equipment doesn’t just include the cost of the new machinery. There are also installation expenses and dips in productivity as it’s incorporated into your facility. The more information an organization has about the total cost of equipment procurement, the better positioned it is to control the CapEx budget.

Get in touch with Bothwell Engineering to work with skilled engineers for CapEx consulting.

We may not be the largest engineering firm, but we strive––with every client on every project––to be the best. Our team comes from diverse backgrounds, enabling us to work in the biotech, pharmaceutical, cell, and gene therapy spaces, providing expertise across project management, facility startup, compliance, and manufacturing. You can rely on our engineering services to provide precise, accurate data for capital expansion projects and more.

Contact Bothwell Engineering when you need expertise you can trust, including for CapEx consulting.