Why Capacity Utilization?
Determine the Actual Usage Level of Real Estate Assets
Know the usage in real-time and over a period for any real-estate asset
Know the Exact Usage Time
Achieve Visibility on exact usage times, which can enable greater use cases
Make Strategic Decisions
The greatest usage, which can drive consolidation or divestiture strategies
Consider Outsourcing
Let your organization take on contracts and use your facilities, resulting in increased profits and brand value
Increase Revenues
Quantify underutilized assets that can be monetized with lease or shorter-term rental contracts
Plan for Redevelopment
The more you plan the better. Capacity Utilization lets you achieve greater clarity and efficiency before, during after a redevelopment initiative
The Pandemic Caused a Permanent Shift in the Usage Dynamics of Commercial Real Estate Assets
Since the pandemic, many companies have developed a looser remote work policy which has led to the growth of unused office space.
So what is the real usage of these expense assets? Here are
some additional questions to ponder:
- Does your company have quantifiable data on the use of
those assets or is it more anecdotal? - Is it best to sell or lease out underutilized assets?
- Can savings across your inventory of real-estate assets
impact your operational bottom-line? - Is it possible to reduce your company’s carbon footprint
through improved capacity utilization? - Is it possible to achieve secondary revenues from real estate
assets?
Why Choose Us?
August Brown has an in-hand, experienced team that uses the artificial intelligence supported analysis to give you a detailed Capacity Utilization report that can help answer all the questions above. Make Capacity Utilization an annual activity that can increase your profitability in the long run by hiring August Brown.
Benefits
- Quantify and calculate your usage rate
- Maximize utilization → increase profits
- Get insights for strategic decision making
- Re-allocate assets
- Reduce greenhouse gases based on heat related usage
- Save money by consolidating lower use assets
Capacity utilization rates how a company effectively uses its resources. It is the ratio of actual production to the potential output of a firm at its best. Simply put, it provides insight into a company’s operating efficiency and can fluctuate based on consumer and market demand.
The capacity utilization rate is measured by dividing the total capacity used during a specified period by the entire production capacity or optimal levels and multiplying by 100. Capacity Utilization = (Actual Production Level/Potential Production) x 100
Market demand and production scheduling determine capacity utilization. Using capacity utilization rates, you can decide when your products’ demand is increasing and you need to expand capacity.
Yes, the capacity utilization rate is a KPI and is often called the operating rate. It measures the rate at which potential output levels are reached or used. It is a percentage figure derived by dividing the actual output by the potential production and multiplying it by 100.
It is a crucial calculation that tells your production line efficiency. Therefore, we recommend that before you do any math or try it by hand, consider an expert who can help you make strategic decisions. The capacity utilization rate is always easier to calculate with an expert.