Avoid the Trap of Delayed Replacement

摘要

When work volumes fall, asset managers may try to save cost and reduce risk by delaying replacement and extending the life of their existing fleet. This reduces capital expenditure, lowers fixed owning costs, and provides flexibility in case the market changes even more. Yet you must compensate with resources needed to manage a fleet that is more expensive, less productive, and less reliable.rnDelaying replacement and extending life is a short-term fix to a long-term commitment. Equipment has a finite life that may be extended through rebuilds or continuing repairs, but in the final analysis, it has to be replaced at some stage. Funds captured from the depreciation component of your rate must be reinvested in your fleet, or you will create serious future problems.