Articles
How To Preserve Your CapEx Budget With Smart Container Decisions
December 10, 2009
•Article: How To Preserve Your CapEx Budget With Smart Container Decisions
Written by Jim Krigbaum, General Manager, CCR Containers USA LLC
Most university Professors teach that a company's Capital Expense budget (CapEx) is intended to purchase revenue-generating, durable assets. So why do companies use it to buy non-revenue-generating containers for shipping or storing liquid product? Unless you are a logistics company, a shipping container is not a revenue-generating asset. Using CapEx funds to purchase containers can be counter-productive to your company's revenue-generating activities. In other words, a shipping or storage container is a means to an end – revenue from your customer – not a "profit center" that generates revenue for your company. A viable alternative is to rent containers for storage/shipping, and therefore reserve your CapEx budget for purchasing assets that can actually increase your revenue and sales.
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