Reasons Your Company Should Consider Renting Construction Equipment
Construction is a capital intensive project that offers long-term returns but burdens companies and individuals with hefty expenses. Although equipment such as excavators, trucks, surface preparation tools, generators, and other equipment are necessary during construction, the cost of purchasing this equipment is high. On the same note, many construction projects need specific equipment for a short time. As a result, construction managers are hunting for new ways to reduce costs and improve their work processes.
Consequently, renting construction equipment has become a viable alternative for many contractors. While the availability of construction equipment determines the success or failure of a project, renting this equipment guarantees you access to the right equipment.
The following are some of the reasons your company should consider renting construction equipment:
You Avoid Initial Cost of Purchasing Equipment
Buying new construction equipment is expensive and can significantly increase your company’s budget. Additionally, buying equipment is a long-term investment that limits your company to specific construction items. However, renting equipment enables you to avoid any expenses related to purchasing and allows your company to allocate resources to other meaningful projects.
You Avoid Repair and Maintenance Expenses
Owning equipment requires you to spare some money for repair and maintenance throughout the equipment’s life cycle. For example, your company’s heavy machinery and vehicles need maintenance to operate safely and at the required level. However, when compared with purchased equipment, rental repair and maintenance costs are significantly lower even though rental equipment also needs repair and maintenance. Besides, rental equipment demands less time and labor costs than purchased equipment. Moreover, leasing equipment from trusted brands increases your confidence that the tool is dependable and will operate at an optimal level. Thus, rentals allow you to focus on other important issues rather than directing your time and effort to develop a sustainable maintenance program.
You Evade Depreciation Expenses
Owning construction machines forces you to incur significant depreciation expenses. However, when you rent construction equipment, you need not worry about depreciation costs because leasing allows you to eliminate fears about the equipment’s wear and tear and resale value. Besides, equipment depreciates every year, making it hard for you to recuperate your initial investment cost. Additionally, this depreciation limits you from upgrading your equipment due to the fear of losing your trade-in value.
No Storage Costs
Owned equipment requires significant storage space when not in use. Equipment, especially surface preparation tools, depreciate quickly when poorly stored or exposed to harsh weather elements, such as rain and sun. Besides, storage space translates to additional expenses, which may have a considerable impact on your construction company’s budget. However, if you lease equipment, you do not have to worry about long-term storage because your vendor takes care of that issue. Consequently, you manage to save time needed to plan storage logistics and costs.
No Transportation Costs
Owning construction equipment requires you to transport equipment from one site to another. Sometimes, transportation consumes a lot of time, limiting your productivity and project efficiency. However, leasing equipment saves you from worrying about transportation logistics because you can have your equipment delivered or picked up anytime, anywhere. As a result, you manage to respond quickly to different construction needs in varied locations.
You Get Business Flexibility
Construction projects significantly differ. While each project requires specific machinery, having the flexibility to acquire the right tools for a particular job when needed is vital. Unforeseen events, such as equipment failure, can affect your construction projects no matter how prepared you were and delay your project completion and increase your costs. However, leasing construction equipment enables you to overcome equipment shortages within short notice. Renting also allows you to partner with the right suppliers and vendors, giving you the flexibility you need to complete your project within the projected time frame. As a result, your company gains a competitive advantage in the construction market.
You Get Fleet Flexibility
Construction businesses evolve rapidly. Although your company may have started by offering few services, it may expand to provide extra services. For example, if you started by providing residential services, you may get commercial or industrial contracts. Although this growth is recommendable, it comes with new demands for modern and more significant equipment with different applications. However, renting equipment enables you to quickly meet these unique needs and expand efficiently without managing new machines yourself. Thus, renting construction equipment allows you to expand your fleet at lower costs.
Saves Time
Waiting for equipment wastes time, reduces profits, and limits your ability to comply with deadlines. However, with a rental agreement, you have the right equipment delivered on-demand and picked up during the exact time you need it. Rented equipment arrives on time and leaves when you finish. Besides, rentals are unlikely to fail and reduce your working hours because the vendors and suppliers frequently maintain and repair the equipment.
You Get Access to the Latest Equipment
The rental market has become competitive due to the constant evolution the construction industry is undergoing. As a result, rental companies have to offer modern machines to get the job done quickly and efficiently. Therefore, unlike owning equipment, renting construction tools enables you to keep up with up-to-date technology, which improves your compliance with environmental regulations.
You Pursue New Opportunities
If you plan to expand your business and get new specialized equipment, purchasing your equipment is not an economically feasible idea. However, the rental can allow you to venture into new projects without considerable investment and save you capital to pursue new construction projects. Thus, renting specialty equipment enables you to increase your project horizons while remaining profitable.
Although your company needs financial planning to determine whether to buy or rent construction equipment, renting can be a sure and affordable way to guarantee accuracy. Leasing enables you to save money, reduce logistical considerations, and test the equipment’s performance and functionality. However, if you decide to rent, always review the renting companies to determine whether they have the equipment you need and understand their costs.