Infrastructure includes the assets within your business from which you derive income, such as buildings, vehicles, plant and equipment, furniture and fittings, computer equipment and so on. These assets may be owned or leased.
It is difficult to understand how many companies spend a lot of money buying or leasing these assets but do not look after them. The lack of routine maintenance can cause down-the-line production stoppages, which may well be costlier in terms of lost revenue than the cost of maintenance. Caring for these assets will go a long way to extend their lifespan and improve productivity. It will also add value to the business, and this additional equity must be measured. Systems, however, must be in place to measure the efficiency of these assets, either at their original cost value or their replacement value. For example; the operating costs, including maintenance of an item, may be greater than the cost of the finance and operating costs of a new replacement item; the property you trade from may not yield the turnover per square or cubic metre you could achieve from a perceivably more expensive property. Very often, perceived cost is the benchmark for acquiring an asset.
Quentin G McCullough