Commercial building owners have much to do, and that includes planning for major expenses like repairing or replacing their roofs. Unplanned commercial roof maintenance can cost between two to five times more than planned maintenance due to emergency repairs, rush labor, and expedited materials, as well as the potential for further damage while awaiting repairs. How can a building owner create a plan for reaching long-term financial goals, like reducing roof maintenance and repair costs, while also planning a budget for a future roof replacement? They can get there with CapEx planning.
What Is CapEx Planning?
Capital Expenditures (CapEx) are the funds an organization spends to buy, maintain, or improve long-term assets like equipment, intellectual property, or buildings (including things like roofing systems) to boost future performance. Unlike short-term funds reserved for daily operating expenses (OpEx), CapEx costs are spread out over the useful life of the asset through depreciation or amortization.
How Does CapEx Planning Impact Commercial Roofing?
CapEx planning provides the following advantages for savvy commercial building owners seeking to improve their ROI:
Boost Overall Property Value
Detailed CapEx planning helps to ensure that a commercial roofing system remains in reasonable condition throughout its lifespan. This positively affects the building’s marketability (to potential purchasers and lenders) and appeals to existing and potential tenants. Studies suggest that energy-efficient or modern roofing systems can raise property values by 10-20%, depending on location and building type. Additionally, the ROI for commercial roof investments often falls in the 60-70% range.
Enact Strategic Upgrades
A smart commercial building owner utilizes opportunities (such as advancements in technology) to improve existing systems, including roofing. For example, incorporating more energy-efficient or weather-resistant roofing materials may improve a roof’s performance and longevity. Modern weather-resistant roofing materials, such as polyvinyl chloride (PVC), are designed to withstand harsh climates and UV exposure. These materials not only improve a roof’s lifespan to 20-30 years or more, outperforming traditional options like asphalt, while reducing maintenance costs.
Budget For A Roof Replacement
Replacing a roof is a big expense. Although it doesn’t happen often—usually only every 20 to 30 years—CapEx planning allows building owners to prepare for a future roof replacement far in advance, avoiding financial stress and ensuring the building’s long-term value. With a replacement timeline and projected replacement costs, setting aside incremental funds can build up the budget to provide for a new commercial building roof when it’s needed.
CapEx Planning For Commercial Roofing
The following factors should be weighed carefully when planning capital expenditures:
The Roof’s Condition
Routine roof inspections provide information about a roof’s condition
External Forces
Local climate and weather patterns can be analyzed to help make decisions about roofing materials.
The Cost Of Roofing Services
Ask about the expected price for installation, maintenance, and repairs.
The Roof’s Lifespan
How much longer will the existing roof last before requiring replacement?
Involving An Established Roofing Contractor
If you’re a commercial building owner hoping to align roofing decisions with overall financial goals, consult a knowledgeable, experienced contractor. Moser Roofing will assist with your CapEx planning for commercial roofing systems, including PVC, TPO, and EPDM. Contact us today to schedule an appointment to learn more.
