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In the past, most industrial companies managed their real estate assets in the same manner- by owning- with the rationale that depreciation is less costly than rent. But as the business changes from being manufacturing based to a more service-oriented platform, so does the need for operational flexibility. It is this need that brought Rockwell Automation to a crossroads in 2004, and the model that evolved in the next year fundamentally changed the way in which the 100-plus-year-old company handled its real estate.
Keywords: manufacturing, flexibility, asset management, sale/leaseback, sale-leaseback, model
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