Capital expenditure:
a recovery in the cycle?
In the face of several shocks to the global economy, such as the pandemic, inflation and the new negative repercussions of the war in Ukraine, a new cycle of economic growth is taking shape for late 2022, early 2023.
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Understanding capital expenditures (CAPEX)
For a company, an administration or an association, the CAPEX (for "capital expenditure") corresponds to the total investment expenditure (tangible and intangible) devoted to the purchase of professional equipment. It is generally translated into French by the expression "dépenses d'investissement de capital". (Source: DAF MAG)
A new cycle of economic growth appears to be emerging for 2022 and 2023, including a recovery in capital spending. Indeed, forecasters estimate that overall real investment worldwide will soon be one-fifth higher than it was before the pandemic. For 2022-2023, the 500 largest U.S. companies (S&P 500) are expected to spend more than one-tenth as much on new plants, technology, research and development, etc.
Source : The Economist
Capital expenditures: what are the trends?
Prior to the pandemic, even as profits rose sharply, companies preferred to reinvest more of their cash in dividends and share buybacks at the expense of capex and R&D.
According to the Financial Times, there are 4 major development trends that are driving this recovery .
- Infrastructure renewal needs
- The "relocation" of production units
- Technological needs related to the energy transition
- Geopolitical preservation
One of the main lessons of the pandemic is the need to strike a good balance between cost control and operational independence.
The pandemic has accelerated the digital revolution and created the conditions for a structural change in the way we use technology in our daily lives. (source : All news)
Capital expenditures: how to control costs?
With the ezyperf capital expenditure planning tool: ezyCapex
The acceleration of capital expenditures (capex) is an issue that is being addressed at ezyperf in 2022.
The development of our ezyCapex capital expenditure planning (CAPEX) solution enables managers, accountants, controllers and other operational managers to go beyond a simple capital expenditure management process.
Whether you are a small company or a large corporation, with ourezyperfmanagement software you can measure performance, monitor projects, manage budget construction and validate your data with a workflow. Finally, our management tool is ergonomic, fast and configurable. Manage and automate your data in dashboards with ease. Opt for an innovative, customizable solution while saving time in your decision-making processes.
Discover our ezyCapex solution in video:
