OPEX vs. CAPEX: The Rise for Multi-Year Mobile Water Solutions
In an era of economic uncertainty and rapidly changing market demands, companies across various sectors are discovering the advantages of renting water technology instead of making substantial capital investments. This shift from capital expenditure (CAPEX) to operational expenditure (OPEX) is changing how businesses approach their water treatment needs.
The Evolution of Water Treatment Solutions
Traditionally, companies relying on water in their processes have focused on contingency planning to mitigate risks associated with supply interruptions. This approach, exemplified by NSI Mobile Water Solutions’ ReAct Treated Water Security Plan, has been crucial in helping businesses develop effective continuity strategies in line with the ISO22301:2019 Business Continuity standard.
However, the industry is witnessing a significant trend towards a more proactive and strategic approach: the Multi-Year water treatment service.
Understanding Multi-Year Service
David Laszlo, European Sales Director of NSI Mobile Water Solutions (part of Nijhuis Saur Industries), describes the Multi-Year service as “essentially like renting a car.” This innovative model offers businesses a flexible, pay-as-you-go alternative to purchasing and maintaining fixed water treatment plants. At its core, the Multi-Year service provides a comprehensive package that goes beyond equipment rental. It included a full range of services including monitoring, maintenance, spare parts, and consumables, ensuring a holistic approach tolong-term water treatment needs.
The service, available from 1 to 7 years, is designed with flexibility and customization in mind. Clients can tailor their engagement level, opting for a hands-on approach where they manage daily operations or a hands-off solution where NSI Mobile Water Solutins (MWS) takes care of all aspects.
This adaptability extends to the technology provided, ensuring clients always have access to proven, reliable water treatment solutions without the need for significant capital investment. Moreover, the inclusion of MWS’ emergency fleet in the service package provides an additional layer of operational security, safeguarding against unexpected challenges or disruptions.
The Growing Appeal of Multi-Year Solutions
The Multi-Year service is gaining significant traction across various industries, driven by its ability to address contemporary business challenges effectively. For industrial companies, the appeal of this model lies in its alignment with modern operational strategies and market demands.
Financial flexibility is one of the main benefits. By adopting an operational rental model, companies can avoid tying up substantial capital in non-core assets. This approach allows for more efficient resource allocation, enabling businesses to invest in their core competencies and growth initiatives. It’s particularly advantageous for industries facing fluctuating demand, such as food and beverage or pharmaceuticals, as it allows them to scale their water treatment capabilities in response to market changes without being bound by long-term commitments.
Risk mitigation is another key factor driving industrial interest in the Multi-Year service. The comprehensive maintenance and emergency support included in the package significantly reduce the potential for costly disruptions due to equipment failure or unexpected challenges. This proactive approach to risk management is increasingly valuable in today’s fast-paced industrial landscape.
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Case Study: Long-term Rental Solution for an Oil Refinery
A prime example of the Multi-Year service’s effectiveness is its application in a European oil refinery. Faced with significant condensate water quality issues and unable to perform immediate repairs, the refinery opted for a comprehensive mobile water treatment solution under a multi-year rental contract.
The solution included:
- Two prefiltration units
- A reverse osmosis trailer
- A degasser
- A pump station
- Two ion exchange trailers
This setup ensured continuous, high-quality water supply, crucial for maintaining operational efficiency and preventing equipment degradation. The contract, extending to the next scheduled shutdown, provided the client with reliable service and regular maintenance, effectively addressing their water quality challenges without requiring a large upfront investment.
Conclusion
NSI Mobile Water Solutions’ Multi-Year service offers a comprehensive solution that addresses key industrial concerns: financial flexibility, risk management, technological advancement, and operational focus. As industries continue to seek ways to optimize their operations in an increasingly dynamic business environment, the Multi-Year model presents an attractive alternative to traditional water treatment approaches.
The shift towards Multi-Year mobile water solutions represents a significant evolution in how businesses approach water treatment. By offering flexibility, cost-effectiveness, and access to expertise, this model is enabling companies to navigate uncertain economic landscapes more effectively.
As industries continue to prioritize agility and resource optimization, the Multi-Year service model is poised to play an increasingly crucial role in water treatment strategies across various sectors.
About the Author
David Laszlo
European Sales Director, NSI Mobile Water Solutions
David is a seasoned Sales Director with 20+ years of experience driving growth and delivering innovative services and design-build solutions to industrial clients across Europe. Proven track record in project management, business development, and fostering strategic partnerships within the industrial sector.
David posses a deep understanding of industrial processes, regulatory requirements, and emerging technologies.