2013 Capital Investment Forecast: Budgets Projected to Rise Next Year
2013 Investment Study indicates that surveying firms may be ready to spend more in 2014
Money is on everyone’s mind, especially with the economic turmoil of the past few years. POB wanted to take a look at how survey organizations are preparing for the next year, and the results indicate firms may be ready to spend more.
According to POB’s capital investment study, the average fiscal 2014 budget is expected to be 43 percent higher than the average fiscal 2013 budget. Two-fifths of the 2014 budget is expected to be allocated for equipment and another fifth toward software. The remainder is expected to be split almost equally between add-ons and training.
Conducted by BNP Media’s market research department, the study provides insights on how surveyors and their organizations plan to spend on various types of equipment and software.
Below are some highlights from the study.
Status of the 2014 Budget Approval Process
The majority of respondents reported that the 2014 budget has not yet been approved, with 10% preparing a tentative budget for the year and 8% having submitted a budget for approval. Only 10% of respondents currently have an approved final budget.
2012 – 2014 Average Budgets
- 2012 budgets averaged $1.65 million.
- 2013 budgets averaged $1.76 million.
- 2014 budgets are averaging $2.526 million.
Change in 2012- 2014 Budgets
- 30% expect fiscal 2014 budget to be more than 2013.
- 30% indicate fiscal 2013 budget is more than 2012.
Overall Fiscal 2014 Budget Allocation
The majority of funds (43%) is being allocated to equipment purchases.
Primary Reason for Planned Purchases
54% of respondents are planning purchases to replace outdated equipment. 31% are purchasing new equipment to increase productivity.
Equipment Budget Allocation
The top three planned equipment purchases are GPS receivers, total stations and data collectors.
Type of Equipment Purchase
86% of respondents are purchasing new equipment, and 14% plan to purchase used.
Preferred Contact for New Equipment Purchases
The majority of surveying professionals prefer to purchase equipment in person from an equipment dealer or sales representative.
Software Budget Allocation
Nearly half of software budgets are allocated to CAD programs.