Capital improvements are investments in new assets or the improvement of existing assets that are intended to provide a long-term benefit to a business. These investments can take many forms, such as the construction of a new factory, the purchase of new manufacturing equipment, or the renovation of a office building. The goal of capital improvements is to increase the value of the business or improve its efficiency, which can help the company generate more revenue and be more competitive in the marketplace.
Some examples of capital improvements include:
- Constructing a new factory or warehouse
- Purchasing new manufacturing equipment or machinery
- Renovating a office building or retail space
- Upgrading a company’s computer system or IT infrastructure
- Installing new heating, ventilation, and air conditioning (HVAC) systems
- Implementing a new production process or technology
- Expanding or improving a company’s transportation network or logistics systems
These are just a few examples, but there are many other types of investments that can be considered capital improvements depending on the nature of the business and the specific needs of the company.