Many times, companies will choose to downsize, either permanently, or temporarily to accommodate changes in their business model. This can include company reorganization, fluctuating in demand for products or services, or the geographic expansion of the business, which involves downsizing some offices to open new offices in other cities.
In the case of temporary downsizing or geographic expansion of their operations, businesses have a couple of choices when it comes down to dealing with their capital equipment including office furniture, technology and computer infrastructure, and artwork:
1) Sell the capital equipment and then purchase additional assets when needed; or
2) Preserve the investment by storing the equipment for future use.
While liquidating capital equipment may seem like one of the easiest choices in the short term, there are some disadvantages to taking this route.
First of all, the business won’t likely recoup its entire initial investment when selling used office furniture, computers or technology equipment, meaning that they will need to outlay additional costs when purchasing new equipment to accommodate future expansion. This can quickly drain the company’s capital reserves.
Next, storing the capital equipment makes it easy for the business to draw on the assets on an as needed basis. Perhaps an office in Texas needs a new desk that can easily be moved from storage in California. Or, maybe the business downsizes, only to find out six months later demand for products and services has improved. With assets available in storage, it is much easier, and more cost-effective to pull whatever is needed from the warehouse to accommodate the expansion.
For businesses that are downsizing and want to preserve capital equipment investments, King Logistics is here to help with our state-of-the-art supply chain services, which include premium warehouse space, that can accommodate anything from a single pallet to 114,000 square feet.
Stretching from coast to coast, our network of warehouses includes around 250 locations within 50 miles of 90 percent of the U.S. population, and representing 150 million square feet of flexible storage space.
If you are considering downsizing, we hope that you will consider King Logistics as your “go-to” logistics and supply chain resource.
Contact us to learn more!