The decision to rent or purchase construction equipment is one of the first questions many companies or individual contractors will ask. A careful analysis and review of the situations in which businesses might use this equipment, the level of frequency, and a company’s financial situation are all things managers can use to make this decision. There are several potential benefits to renting the things you might need.
Renting the construction equipment you need can save the company money in the long run. If a business needs a particular piece of heavy equipment but does not currently own that type of machine, acquiring a rental could be a good option. Renting only what is needed for a specific job is something a construction manager can weigh against continuous maintenance costs. Additionally, rentals provide construction companies with some tax advantages. The fees a business has to pay for renting equipment are eligible for an immediate deduction. Combining these considerations makes renting machinery an attractive choice from the numbers side of things.
Maintenance on construction equipment can be both time-consuming and costly for a business. However, a dealership that has rented machinery out to your company usually keeps everything maintained as part of the agreement. Some rental organizations employ regular service technicians who will make sure each piece of equipment is ready for deployment before it leaves the lot. If there is any emergency maintenance to be done before the machines of your choice are ready, you won’t have to worry about that side of things yourself. Some rentals will have regular maintenance schedules included in their cycles. Maintaining equipment may include upgrading it as well.
If you own your own equipment for construction jobs, you have to house it somewhere when it is not in use. Heavy equipment tends to be large, and most companies own more than one type of machinery. All of this means you would need to pay rental fees on large storage sites in order to keep your equipment safe and in good condition until you’re ready to use it. Saving on storage costs is another way a construction company can increase its overall bottom line.
Rent Specialized Equipment
Some construction jobs require special equipment that you might not think of as part of a standard lineup. It doesn’t make sense to have these kinds of machines sitting in a storage space most of the time just to take them out once or twice a year when necessary. You might need to employ hoppers on a job that requires waste disposal or the collection of debris for recycling. Renting self-dumping hoppers only when necessary can help a company cover all aspects of a construction job without the added hassle of storing or maintaining several machines that might not get much use. Self-dumping hoppers have features which make them unique from other hoppers. As you review your plans for a particular job, you’ll get some indication of the types of specialized equipment you might need to rent.
Purchasing construction equipment is a costly venture that usually requires heavy investments upfront before you can get to work. However, renting these same machines on an as-needed basis can give you greater financial and technical flexibility. If you want to try out a new piece of equipment or an upgraded version of a favorite, you can rent one out and see if it works for your needs without being stuck with something you can’t use later. When you own construction equipment, you may have to press machines into services for which they are not suited. If you do own any machinery, renting gives you the flexibility to supplement your fleet in the short-term when you know you’ll need the extra power.
Strong Borrowing Power
Banks look at rented equipment differently than they do purchased machines. In general, they don’t look at construction equipment rentals as some kind of liability when examining a company’s balance sheet. This technical advantage can help a business that uses heavy equipment to maintain a position of strong borrowing power for the future. Machines that you own may come with equipment debt or include aging models that make the business look weak financially.
The laws regarding emissions for heavy equipment can change over time. In some cases, it may be hard to keep up with some of the most stringent regulations, and you might not be aware of all of them. When you rent construction equipment, someone else is responsible for staying abreast of any changes in laws that pertain to heavy equipment emissions. You can be relatively certain that the stuff you choose to rent is current with government standards and ready for use on your next job.
Reduce Waste Time
Time is money, and equipment that is not working on a site or still in transport to the site will eat into a company’s budget. Securing a rental agreement means that you know what kinds of heavy machines you are getting, how long you’re renting this for, and when the equipment will show up for use. If something goes wrong, a rental agreement can mean that repairs will happen quickly, or a replacement will be sent to reduce any wait times.
Take New Opportunities
Renting heavy equipment involves saving on a lot of costs, but it can also open up a construction company to new deals as well. Renting specialized or necessary equipment only when you’ll have a use for it means you have the freedom to pursue jobs that might expand what your business can do in the short-term. Being able to rent these machines means you can chase new leads for the business without worrying about expensive investments that might not pay off.
Renting the kinds of things you need gives a company access to a wide range of machines that they can pick and choose from to complete specialized tasks. When the job is done, there is no need to worry about maintenance, transport, or storage logistics. Both small and large construction companies get a chance to save on maintenance and labor by choosing to rent what they need.