There are several reasons why operational costs may increase over time:
Inflation: As the general price level rises, the cost of goods and services that a business needs to operate also increases. Labor Costs: Wage increases, benefits, and other employee-related expenses can significantly impact operational costs. Utility Costs: Increases in the cost of electricity, water, and other utilities can drive up operational expenses. Regulatory Compliance: New laws and regulations may require additional spending on compliance measures, insurance, and other related costs. Supply Chain Disruptions: Issues such as supply shortages, increased shipping costs, and tariffs can also lead to higher operational expenses.