In a recent article in The Driller, I wrote about making the “big” decisions. How do we weigh all the required factors, including the cash investment, against the expected outcome? This details one such decision and how the outcome was surprising.
Investing in adding a rig or, in my case, a new CNC lathe is fairly straightforward. We can calculate what it will add to our businesses as long as we have the work to keep it utilized. But what about when that investment has no direct ties to income? Think about a growing drilling contractor looking to move out of his backyard shop to a larger facility that would house all his rigs and service trucks, and provide more shop and office space.