{"id":8537,"date":"2023-03-19T01:05:11","date_gmt":"2023-03-19T05:05:11","guid":{"rendered":"https:\/\/www.uschemicalstorage.com\/?p=8537"},"modified":"2023-03-22T13:08:05","modified_gmt":"2023-03-22T17:08:05","slug":"capex-approval","status":"publish","type":"post","link":"https:\/\/uschemicalstorage.com\/staging\/capex-approval\/","title":{"rendered":"Keys to CapEx Approval"},"content":{"rendered":"<img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter size-full wp-image-8546\" src=\"https:\/\/uschemicalstorage.com\/staging\/wp-content\/uploads\/2023\/03\/CapEx-Images-1-e1679322343105.jpg\" alt=\" Man's Hand with a golden illuminated key floating above it\" width=\"665\" height=\"335\"\/>\r\nCapital Expenditure projects, or CapEx, are enhancements and improvements that may involve big-ticket items like vehicles, equipment, facility improvements, and technology implementation. They are necessary for every business but preparing a proposal for a CapEx presentation can strike fear in the hearts of many. In this article, you will learn 3 keys to CapEx approval for a U.S. Chemical Storage hazmat building.\r\n<\/p>\r\n<strong>1 &#8211; get specific with metrics\r\n<\/p>\r\n2 &#8211; the accounting perspective\r\n<\/p>\r\n3 &#8211; know the alternatives<\/strong>\r\n<\/p>\r\nNote that we are <strong>not<\/strong> offering accounting advice, nor are we aware of how your specific CapEx budget process is managed. The below 3 general keys will help you be prepared for the process. \r\n<\/p>\r\n\r\n<h2>Key 1. Get Specific With the Metrics<\/h2>\r\nBeyond the requirement of code compliance, provide specific data that shows expected chemical growth for the organization in the coming years &#8211; and justify why the design should be the size you recommend. Knowing the conversations you&#8217;ll likely have in advance, you&#8217;ll want to be prepared for what to say. These would vary based on your specific situation, but some great examples to be prepared with would include:\r\n<\/p>\r\n<ul>\r\n \t<li>&#8220;With forecasted growth of <strong>x<\/strong>%, I estimate that our chemical use will grow by <strong>y<\/strong>%, leading to a need for <strong>z<\/strong>% more barrel storage.&#8221;<\/li>\r\n<\/ul>\r\n<ul>\r\n \t<li>&#8220;We can be in code compliance upon delivery of the building, and can relocate the building in <strong>x<\/strong> years when we move to the new site, with minimal expenses compared to new construction.&#8221;<\/li>\r\n<\/ul>\r\n<ul>\r\n \t<li>&#8220;This building is averaged at $<strong>x<\/strong>\/sq ft., and new industrial construction is currently running at $<strong>y<\/strong>\/sq ft.&#8221;<\/li>\r\n<\/ul>\r\n<ul>\r\n \t<li>&#8220;Our current storage is only one level. This building can store twice as much raw material in the same footprint.&#8221;<\/li>\r\n<\/ul>\r\n<ul>\r\n \t<li>&#8220;With the feature of gravity-fed pallet rollers, we eliminate the need for utilization of our one heavy-duty forklift which isn&#8217;t always readily available.&#8221;<\/li>\r\n<\/ul>\r\n<img decoding=\"async\" class=\"aligncenter wp-image-8548\" src=\"https:\/\/uschemicalstorage.com\/staging\/wp-content\/uploads\/2023\/03\/CapEx-Images-1-2-e1679322601644.jpg\" alt=\"Photo of a man's arm writing &quot;CAPEX capital expenditure&quot; on a dry erase whiteboard\" width=\"417\" height=\"256\" srcset=\"https:\/\/uschemicalstorage.com\/staging\/wp-content\/uploads\/2023\/03\/CapEx-Images-1-2-e1679322601644.jpg 855w, https:\/\/uschemicalstorage.com\/staging\/wp-content\/uploads\/2023\/03\/CapEx-Images-1-2-e1679322601644-300x184.jpg 300w, https:\/\/uschemicalstorage.com\/staging\/wp-content\/uploads\/2023\/03\/CapEx-Images-1-2-e1679322601644-150x92.jpg 150w, https:\/\/uschemicalstorage.com\/staging\/wp-content\/uploads\/2023\/03\/CapEx-Images-1-2-e1679322601644-768x472.jpg 768w\" sizes=\"(max-width: 417px) 100vw, 417px\" \/>\r\n\r\n<h2>Key 2. Look at the Building From the Accounting Perspective<\/h2>\r\nOne of the things the C-suite may require is a positive net value to any <a href=\"https:\/\/www.investopedia.com\/ask\/answers\/112814\/what-are-some-examples-main-types-capital-expenditures-capex.asp\">CapEx<\/a>. Your accounting team will likely want to know other values of a U.S. Chemical Storage building:\r\n<\/p>\r\n<ul>\r\n \t<li>It can instantly add value as an on-site improvement upon purchase<\/li>\r\n \t<li>It can be classified as &#8220;movable property&#8221; for tax purposes instead of the &#8220;fixed real property&#8221; of traditional construction that will depreciate with no added property value<\/li>\r\n \t<li>The cash outflow costs can be organized easily so the costs are clear and controlled upfront, and investment ROI can be fully understood without cost creep.<\/li>\r\n \t<li>Downtime and labor demands are greatly reduced as we handle all construction at our facility. A concrete pad and utility hookups are all required of your facility.<\/li>\r\n<\/ul>\r\nU.S. Chemical Storage buildings are prefabricated with all electrics, fire suppression, HVAC, and other features installed at the factory, and they are self-contained products that arrive on a flat bed trailer direct to the site as a &#8220;plug and play&#8221; solution.  It&#8217;s for this reason that some departments try to classify our solutions as heavy machinery or specialized equipment. However, accounting departments consider them <strong>buildings<\/strong>, and that is an important distinction.\r\n<\/p>\r\n\r\n<img decoding=\"async\" class=\"aligncenter size-full wp-image-7346\" src=\"https:\/\/uschemicalstorage.com\/staging\/wp-content\/uploads\/2021\/01\/Tote-Rental-Optimaize-for-Web.jpg\" alt=\"US Chemical Tote Storage Building Available for Rent or Purchase\" width=\"454\" height=\"284\" srcset=\"https:\/\/uschemicalstorage.com\/staging\/wp-content\/uploads\/2021\/01\/Tote-Rental-Optimaize-for-Web.jpg 454w, https:\/\/uschemicalstorage.com\/staging\/wp-content\/uploads\/2021\/01\/Tote-Rental-Optimaize-for-Web-300x188.jpg 300w\" sizes=\"(max-width: 454px) 100vw, 454px\" \/>\r\n&nbsp;\r\n<h2>Key 3. Show You&#8217;ve Researched the Alternatives<\/h2>\r\nThe team may want to know how a building like one from U.S. Chemical Storage stacks up against the alternative options before you.\r\nSome of the alternatives you&#8217;ll want to consider:\r\n<\/p>\r\n<ul>\r\n \t<li><strong>vs. Doing Nothing (*often not a viable option)<\/strong>\r\n<ul>\r\n \t<li>Avoid fines and penalties.<\/li>\r\n        <li>Fortifies insurance from cancellation, denial, or skyrocketing premiums.<\/li>\r\n \t<li>Protects the safety of your workforce.<\/li>\r\n \t<li>Safegaurds your property from damage or loss.<\/li>\r\n \t<li>Implements operational inefficiencies to maximize profits.<\/li>\r\n<\/ul>\r\n<\/li>\r\n \t<li><strong>vs. Traditional Construction<\/strong>\r\n<ul>\r\n \t<li>Payment terms are locked in upon PO &#8211; no construction cost overruns allowed.<\/li>\r\n \t<li>Prefabricated construction means everything is fully installed and tested before shipment.<\/li>\r\n \t<li>The lead time we give is the lead time you get. No additional delays. You benefit from our experience.<\/li>\r\n \t<li>Continuous relationships with vendors mean we get the best price and lead times possible<\/li>\r\n \t<li>With over 30 years in the business, we understand the code compliance and options often considered in your industry.<\/li>\r\n \t<li>All the trades of welding, construction, electrical, painting, and quality, are all under one roof so the coordination keeps timeframes on track.<\/li>\r\n<\/ul>\r\n<\/li>\r\n \t<li><strong>vs. Another Company<\/strong>\r\n<ul>\r\n \t<li>No one else in the market has the capabilities and experience we have in complex and uniquely tailored buildings.<\/li>\r\n \t<li>We gladly welcome requests for on-site inspections from your company or requests for sign-off from 3rd-party inspection services.<\/li>\r\n \t<li>Make certain that you are comparing equal products to one another. If you&#8217;re not, ask why.<\/li>\r\n<\/ul>\r\n<\/p>\r\n<p style=\"text-align: center;\">___________________________<\/p>\r\nContact U.S. Chemical Storage for help designing your perfect Hazmat Chemical Building solution today. We have experienced, knowledgeable sales engineers that can take a huge amount of stress off your shoulders and create a well-engineered, plug-and-play, efficient, and compliant building for your industrial application. As you can see, with these 3 Keys to CapEx approval, the process doesn&#8217;t have to be difficult.\u00a0 <a href=\"https:\/\/uschemicalstorage.com\/staging\/request-a-quote\/\">Fill out this form<\/a>, and let&#8217;s get the keys to your new U.S. Chemical Storage building into your hands.\r\n\r\n&nbsp;","protected":false},"excerpt":{"rendered":"<p>Capital Expenditure projects, or CapEx, are enhancements and improvements that may involve big-ticket items like vehicles, equipment, facility improvements, and technology implementation. They are necessary for every business but preparing [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":8546,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[40],"tags":[],"class_list":["post-8537","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-article"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v26.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Keys to CapEx Approval | U.S. Chemical Storage<\/title>\n<meta name=\"description\" content=\"Get your CapEx Project for facility chemical storage and hazmat use approved easily with these keys to CapEx approval success.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta 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