It’s a simple concept. Capital expenditures, on average, comprise only 10% of total building costs while lifecycle operating costs make up the remaining 90%. Therefore, it’s more sensible – if not more financially advantageous – to balance fiscal decisions by taking both aspects into account.
CAPEX and OPEX are not mutually exclusive. They each impact the balance sheet and total cost of ownership (TCO). Problem is, certain elements of building lifecycle costs – taxes, incentives, energy, maintenance and replacement – are very difficult to predict or analyze upfront (pre-build) with any high degree of confidence or accuracy. At least, not until now.
SmartView™ by Butler® is a powerful TCO analysis tool.
Total cost of ownership is more than a theory. For several years now, businesses have factored TCO into capital investment decisions for things like heavy equipment, IT systems, HVAC systems, vehicles/fleets, and other major expense items.
Now, the data to perform such calculations for not-yet-constructed facilities is available and part of the calculations performed by sophisticated modeling technology, known as SmartView™. The program was developed by Butler Manufacturing™, as a reliable cost analysis tool for evaluating the initial and long-term impact of different building system construction options.
SmartView analyzes all significant contributors to Total Cost of Ownership (as seen below).