Key Findings
CapEx in turbulent times
In today’s turbulent economic climate, businesses are facing unprecedented challenges. This means the need for more effective CapEx optimization has never been greater. We asked our survey respondents to share why they are prioritizing future CapEx projects. The top drivers were supply chain resilience (53%), transformation business (52.5%) and sustainability (46.5%). In the face of uncertainty, leaders are prioritizing resilience and the need to adapt to changing markets and environmental pressures.
Investing for the future
Budgeting for CapEx projects is an essential part of running a successful business. Our survey found that most respondents (70.5%) expect to spend 10-30% more on CapEx over the next three years. This trend highlights the strong commitment to long-term growth and staying competitive across industries. Leaders recognize the need to invest in assets, technology and infrastructure to improve efficiency and keep up with the rapidly changing market.
The need for management
CapEx management is critical for businesses. An overwhelming majority of survey respondents rated it as either important (52.2%) or very important (45.5%). This near-unanimous agreement showcases that businesses understand the importance of CapEx management for strategic planning, cost savings and return on invested capital (ROIC).
CapEx crossroads
Innovation is not free from challenges and our survey showcases the key challenges industry leaders face when delivering their CapEx projects. Two key issues emerged as predominant concerns, with 50% tackling the increasing cost of equipment and 47% noting the decision-making process as a substantial challenge. These findings highlight the complex landscape of CapEx management in today's business environment, where financial pressures and organisational dynamics play crucial roles.
Prioritize execution
Project execution and procurement are the top priorities for improving CapEx projects, with 63% and 61% of respondents respectively identifying these as key areas in need of improvement. Value engineering, while less prominent, was still recognized by 39% of participants as an important focus for optimization. These findings underscore the significant challenges organisations face in effectively managing and implementing their capital expenditure projects. The emphasis on project execution suggests that many companies struggle with timely and efficient project delivery, while the focus on procurement indicates potential issues in cost management and supplier relationships.
