My husband is a contractor that does all sorts of jobs. There have been times that he has had to turn down a job because he didn't have some of the equipment that he needed to do the job right. Other jobs require that he rents some heavy construction equipment. We have been trying to decide if we should invest in purchasing some of that equipment that he needs or if it is better to continue renting it. Go through our blog to learn about purchasing heavy construction equipment. Here, you will learn the cost of purchasing and maintaining versus renting it.
While your construction company probably already owns some equipment that you use regularly, these items might not be enough to cover your needs on all your jobs. You might sometimes need to use specialty equipment.
While you can increase your owned inventory by buying new items as you need them, this doesn't always make the most financial sense. Renting equipment could save you some money. How?
1. Reduced Equipment Costs
While it makes sense to buy equipment that you will use regularly, this investment makes less sense if you buy a piece of equipment that you will only use periodically. You might have high upfront purchasing, downpayment, or loan repayment costs for something that you won't use all that often.
For example, you might need to use light towers on a job that requires evening or night work. If you've never had to use light towers before and can't predict when you might need to use them again, then a short-term rental makes more sense than a purchase. You will pay less.
2. Reduced Storage Costs
You need to find suitable and secure storage for any equipment your business owns. You need somewhere to store your assets between jobs; you won't use all your equipment on every job.
Storage adds to your business costs. You might need to build or rent storage space if you don't have a secure site of your own and you buy a lot of the equipment you use. Larger items increase your spatial needs.
If you rent equipment, then you reduce your storage needs. You either pick up rental items or have them delivered when you're ready to use them; you then return them when you're finished with them.
3. Reduced Maintenance Costs
Maintenance and repair work is vital on construction equipment. It keeps your equipment in good working order so that you can use it when you need to. It also ensures that your equipment is safe to use.
You have to maintain and repair any equipment you own. Once your warranties expire, you won't have manufacturer help with this. You have to cover these costs. They are likely to increase over time as items age and wear.
If you rent some of your equipment, then you reduce these costs. The rental company is responsible for general maintenance and repair expenses. This could save you a significant amount of money in the future.
To find out more about the types of equipment you can rent, talk to construction equipment rental companies.
Share17 March 2023
