Today, many companies face unprecedented challenges from low commodity prices and fierce competition. We can see how more and more projects are either being canceled or postponed while more companies are chasing fewer projects. You can read more about brownfield project challenges below, or watch our new video!
Making the most of existing assets
As most of us will know, one of the key ideas of economic theory is that businesses will focus on improving efficiency to maintain profits and gain a competitive advantage during a downturn. Although the global oil price is showing some signs of recovery, we are still a long way from seeing new build projects being budgeted, as most owner-operators are still focusing on making the most of their existing assets.
Besides oil and gas companies, pharmaceutical, chemical producers, and other plant operators are all under pressure from multiple directions: in addition to the fluctuating oil price, increasing regulations, shrinking margins, and the ever-increasing need for heightened efficiency are also influencing the daily operations.
As one of the ways to answer to competition and improve margins, we can see that owner-operators are currently looking for ways to extend the lifecycle of their existing facilities and get the most value from these facilities while they are operational. There are many benefits when compared to building new facilities: no new capital investment is needed, the entire existing infrastructure is already in place, and plant personnel is already trained.
For these brownfield projects, a toolset is needed that matches the dynamics and finances of these faster paced, lower budget projects. And what does this toolset look like? Watch our new CADWorx video Excel in Brownfield Project Execution to find out!
Curious to learn how others have excelled in brownfield project execution with the help of CADWorx Solutions? You can read how Mercury Engineering designed a new process plant with product pipelines that connected into an existing facility or how Numikon improved brownfield operational safety with the help of CADWorx and laser scanning.