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From CapEx to OpEx
A pathway for retrofitting to enhance asset optimization .
By Stuart Thompson
Companies across industries are facing a daunting challenge : how to maximize profits and competitiveness while navigating a complex web of global forces . From the lingering impacts of the Covid-19 pandemic to energy price shocks and economic uncertainty stemming from the geopolitical uncertainty , organizations are being forced to adapt their strategies to mitigate risk and boost operational resilience .
Amid the volatility , companies are undergoing a significant shift from capital expenditure ( CapEx ) to operational expenditure ( OpEx ) as they seek to squeeze maximum value from their existing assets and investments . Rather than sinking capital into new equipment and facilities , businesses are increasingly turning to smart servicing , modernization programs , and digital transformation initiatives to optimize their processes in a flexible way and minimize operating costs for bottom-line benefit .
Forces driving the shift towards OpEx strategies
This strategic pivot towards OpEx is being driven by a confluence of factors . One of the long-term operational implications of the pandemic was widespread CapEx cuts as organizations scrambled to reduce costs and preserve liquidity .
At the same time , companies continue to be at the mercy of the energy trilemma - the challenge of balancing the competing objectives of energy security , affordability , and sustainability - which places an enormous strain their bottom line especially given
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