07 April 2022
There are a number of important factors to consider when you are trying to decide whether buying or renting a factory is the best move for your business. In this article we’re going to explore these factors, ask some important questions, and try to determine which would be the best option for you. Read on to find out more.
One of the biggest advantages of renting a factory is the fact that your original outlay of cash intended to purchase an asset will typically be less for leasing than it would be for purchasing outright. That said, one advantage of buying is that you will ultimately end up paying less in the long term as you would if you lease. Additionally, if you do purchase you will get the added benefit of the potential appreciation in value.
One way of reconciling these factors is by doing an analysis of your net cash flows that would result from both purchasing and leasing a factory. In order to do so, you need to know certain facts such as:
In this light it’s important that you not only think about the short-term implications of your decision, but also the long-term.
So, what other important factors should you consider when making the decision to buy or rent a factory? The following factors are geared toward purchasing, rather than renting a factory:
Similarly, let’s look at the following important factors from the perspective of renting a factory, rather than purchasing it outright:
As you can see there are many different factors to consider when making the decision to rent or buy a factory outright. So, take your time and do plenty of research, consider the short and long-term impacts of buying and renting, weight up the pros and cons of each and make an informed decision as to which is going to be the best decision for your business at this time.
Shared
View more in blog
Cross-Docking: Benefits and Implementation Strategies
Discover the advantages of cross-docking for your logistics operations. Learn how to reduce storage costs, improve delivery speeds, and streamline your supply chain.
Thai's Rating of Energy and Environmental Sustainability for New Construction
AMN-M1.7 Plot G702/20 (Ready-built Factory
Logistics and Connectivity: The Strategic Advantages of Chonburi’s Industrial Estates
Strategically nestled in the heart of Southeast Asia, Chonburi's industrial estates boast unparalleled logistics and connectivity. They're a magnet for businesses looking to tap into dynamic markets. With state-of-the-art infrastructure, these hubs are transforming the landscape of regional trade.
Bangkok Warehousing 2024: Adapt to Evolving Market Needs
Bangkok's warehousing market is undergoing a transformation as dynamic as the city itself. In 2024, the landscape is defined by rapid technological advancements and shifting economic currents. Businesses are finding that staying ahead means adapting quickly to these changes.
Sustainable Practices for Modern Warehouses
In today's eco-conscious market, sustainability isn't just a buzzword—it's a business imperative. Modern warehouses are at the forefront of this shift, adopting practices that reduce environmental impact while boosting efficiency. They're proving that going green can mean more than just saving the planet; it can save on costs, too.
Everything You Need to Know About Getting a Factory License in Thailand
On October 27th, the Factory Act came into effect, creating adjustments to aid factories in becoming more comfortable and adaptable in the market. According to this new act, a factory is define as a building, place, or vehicle with at least 50 employees or machinery with a total power of 50 horsepower or more. This marks a major change from the 1992 Factory Act, which set the criteria for 5-20 horsepower and/or 7-20 employees.
How Smart Warehouses are Using IoT Devices
The world is changing, and the internet of things is at the forefront of this change. Businesses of all types are beginning to adopt IoT (Internet of Things) technology in order to improve efficiency and bottom lines.
5 Factors to consider when choosing a location to rent a Factory
There are several points to take into consideration when choosing a proper location to rent a factory in Thailand. These Factors are important for the supply chain and logistical processes of your business therefore the next time you are renting a factory, do proper research and evaluate the options you have. This will affect all aspects of your business from branding, employee workflow to your customers' satisfaction. However, in order to make an informed decision, this article will run through the main points to get the best out of your factory rental.
Factory for rent in Chonburi – Pros & Cons
Chonburi is located in the north-eastern part of Thailand. This province, located just about 64km away from Jomtien beach and 60km from Pattaya beach, is known as one of the most popular destinations among tourists for its beautiful beaches, natural beauty, cultural heritage, and friendly locals. It is also a good location for living with a lot of greenery, clean air, and fresh water.
Warehouse and Warehousing - what is the difference?
Warehouses are associated with storing goods. Many businesses use these facilities to store their products, such as raw materials, packing materials, components, or unfinished goods until they are ready to be shipped to the distributor or manufacturer where it turns into finished goods.
Warehouse for Rent in Chonburi – Pros & Cons
Chonburi is located in the north-eastern part of Thailand. This province, located just about 64km away from Jomtien beach and 60km from Pattaya beach, is known as one of the most popular destinations among tourists for its beautiful beaches, natural beauty, cultural heritage, and friendly locals. It is also a good location for living with a lot of greenery, clean air, and fresh water.
8 Tips When Looking for Warehouse Space
If you are a business owner looking for a new warehouse space, it is paramount that you know exactly what you need before starting your search. First, you must do plenty of research and put together a solid plan of action. That way, when you do start looking at prospective warehouses, you can save time by instantly recognising which units are unfit to accommodate you, and which units should immediately be added to your shortlist of potentials.
Built-To-Suit Warehouses are on the Rise, why Purpose built Warehouses and Factories make sense for Businesses
As e-commerce demand continues to grow, built-to-suit warehouses are becoming more and more popular. But what is a built-to-suit warehouse and why are they so valuable for e-commerce retailers and logistics companies alike? In this article, we’ll tell you everything you need to know!
A Guide to Cold Storage Warehousing
Cold storage and transportation is what makes it possible to send fresh foods and medicine all over the world without the risk of unnecessary storage. If you’ve ever wondered how your favourite ice creams gets delivered to your local shop – that’s how!
How AI and Automation Are Impacting Warehousing in Thailand
The impact of AI in warehouse automation has been revolutionary as it is leveraged across multiple multiple applications such as robotics, computer vision, and language processing tools to streamline warehouse operations. In this article, we’re going to look at how AI and automation are impacting warehousing in Thailand, and what it means for the future
Buying or Renting a Factory – Which is best?
There are a number of important factors to consider when you are trying to decide whether buying or renting a factory is the best move for your business. In this article we’re going to explore these factors, ask some important questions, and try to determine which would be the best option for you. Read on to find out more.
Why Warehouses in Asia are on the rise in 2022
Warehouses are in high-demand all across the world at the moment and in 2022 we’re only going to see that popularity rise even higher. But why is that? What’s with all of the hype and desire for warehouses right now? In essence, businesses (especially retailers) are running out of room to hold all of the items that we are ordering online.
Advantages of Renting a Factory or a Warehouse
When business owners and entrepreneurs look to expanding their business operations, one of the biggest challenges is finding an appropriate factory or warehouse that can support and encourage future success.
Good Manufacturing Practice (GMP) – What it is, what it covers and what the benefit are
In this article, we are going to explore GMP (good manufacturing practice), and what benefits it can bring to your business. As with any industry, in order to experience the highest levels of success, one must adopt the best practices in everything that you do, whether it be manufacturing, customer service, or hospitality. By gaining a thorough understanding of these ‘good practices’, you can optimize your business to function at peak performance, increase profits, and bolster your brand reputation. Let’s get stuck in!
Supply Chain Challenges and how a Warehouse can take your business Forwards
There have always been challenges in the supply chain, and what with the COVID-19 pandemic, many of these issues have been exacerbated. In any case, as business owners are faced with new challenges it encourages innovation—which leads to some surprising ways to overcome said challenges. One thing that can really help drive your business forward and combat a number of supply chain issues is by investing in the appropriate warehousing. But, before we get into that, let’s look at some of the biggest problems faced and what might be done to combat them.
Factory Rentals in Thailand - All you need to know
Are you looking for factory rentals in Thailand? If so, then you may be feeling a little overwhelmed at the task; trying to find the ideal premises in a strategic location, and for the right price. But don't panic! It's not as difficult as you might think, particularly when you do your research.
Warehouses in Thailand – What you need to know.
Whether you are a new business owner looking to expand, or you are long-established and simply need to upgrade, having a warehouse comes with a great number of benefits. As someone who is unfamiliar with warehouses or is perhaps looking at them for the first time, then you’ll need to plan your approach with careful consideration.
Warehouse Security and our approach to Dangerous Goods Warehousing
A large explosion and fire destroyed the Ming Dih Chemical factory compound that had been producing plastic foam and pellets in Tambon, Rachatewa, causing extensive damage to the surrounding communities, earlier this month in July 2021.