How should GPS Machine Automation equipment designed for precisely controlling excavation and grading equipment be classified by the contractor who is contemplating its purchase? Is it a capital expenditure or an investment? As the terms are used here in this article; Capital Expenditure: outlay of money to acquire or improve capital assets such as...machinery (Barron's Dictionary of Finance and Investment Terms, 5^th edition); [Capital] Investment: outlay of money usually for income or profit (Merriam-Webster 11^th Collegiate Dictionary)

According to James Ientile, President of JRi (James R Ientile, Inc.), capital investment better describes the results his company has been enjoying since a 3D GPS system has been used on one of the company's bulldozers. Ientile's GPS system is the latest technology offered by Leica Geosystems, the GradeSmart 3D GPS System. The use of this system has been so profitable that this spring, Ientile is purchasing a second GradeSmart 3D for fitting it on a second bulldozer. "My decision to buy the second system is simple; my investment in the first Leica [Geosystems] GPS equipment has brought me a substantial return and I am convinced the second unit will be even more profitable because I am having it installed on a bigger bulldozer with a much wider blade. The more dirt moved per unit of time, the more profitable the GPS system becomes," said Ientile.

Here is some background on the JRi Company and how it was led to invest in the Leica Geosystems GPS Machine Automation technology. Its corporate headquarters is in Marlboro, New Jersey. Founded in 1989 by Ientile, the company is the second Ientile family-owned company; the first one was founded by Ientile's father. That company was started in 1946 under the name FJ Ientile Inc. Ientile gained much experience working in his father's company before going it alone. "I learned all my equipment operating skills when working for my father and that experience is an asset for operating my own company," said Ientile.

JRi is best described as a general contracting company specializing in site-prep work, including land clearing, site reprofiling, excavation and grading, road-building, and underground utilities installations. Ientile prepensely keeps the company medium size and thus employs to 25 people. He explains, "We are a company that has found a niche in the construction industry by carrying out major site-work projects on industrial, residential and commercial properties, with some public sector projects such as new schools and major health-care facilities sites. We offer turnkey site-preparation services ranging from underground utilities to building and paving the site's roads and streets. In fact we do all the work in house except for the asphalt paving, which is subcontracted to a third party contractor. Big is not necessarily more profitable. Taking on the more challenging projects that require our kind of expertise and our value engineering services has enabled the company to get most of its work repeatedly from a handful of leading customers. They appreciate our high-quality work and that makes our services rendered to them less price sensitive."

As a businessman, Ientile has always been forward thinking. He is ready to adapt to new technologies that will enhance the quality of work performed by the company and correspondingly with greater profitability. He reasons that providing superior quality workmanship is a significant bonus for his customers and the greater profitability is his company's benefit.