With equipment advancement moving at the blink of an eye, construction companies are struggling to keep up with the fast-paced, unpredictable market.
The construction industries demand the latest and most innovative equipment and tools to make the job more efficient and time-saving.
In order for companies to keep up, they need to cut costs wherever possible. For example, with equipment.
As much as companies need the newest technology for specific projects, they do not have to purchase the equipment. They can rent the best equipment for less.
Here are some benefits to renting your construction equipment:
” Renting ensures that you avoid initial purchasing costs
Equipment and machinery are often the resources which cannot be budgeted for. Their prices grow significantly, so if you do decide to purchase something from scratch, you need to be prepared for the long-term investment costs and smaller breathing room with other business opportunities.
A better decision would be more along the lines of renting or leasing your equipment. This allows a company to explore a wider range of well-known brands, like Volvo equipment, to assist with their projects. It also ensures that companies always have the most modern, advanced equipment and tools to do the job, without having to face the financial pressure of upfront purchasing payments.
Now, business owners are able to direct that money into other, more urgent areas of the business.
” Say goodbye to steep maintenance costs
One of the biggest benefits that clients tend to lean towards when making the decision to rent or buy a machine is the maintenance costs.
Beyond the initial purchasing price, you need to take into consideration the repair costs, and what your backup plan will be if the unit needs to undergo a maintenance check. Bearing in mind, these maintenance checks are absolutely vital for security and productivity purposes for both the operator and the company itself, so they cannot be ignored.
With rental equipment, maintenance costs are less and sometimes even factored into the price. If not, you can rest assured knowing that the price you’ll pay for labour is a lot more manageable. Rentals are also usually done on a short-term basis so that smart business owners can afford to budget according to upcoming market and equipment trends. For buyers, it’s important to evaluate the long-term benefits that your equipment is going to provide for your company. These stressful purchases require professional advice and research, as you will be responsible for the entire life-cycle of that product.
” You’ll avoid increased market fluctuation
As mentioned, the construction industry is constantly fluctuating. There are various economic and environmental factors that influence the industry, so be prepared for the worst at all times. It’s difficult to foresee financial difficulties, but with renting, naturally, businesses can cushion themselves from those challenges. As much as renting is a commitment, it’s not a long-term commitment that could impact your company in a negative way. You have more freedom to be flexible with your rental contract.
” There will be no depreciation costs in equipment
This tip is a no-brainer. With renting, you are not the owner of the equipment so you won’t be left with a piece of equipment that has lost its value. You won’t believe how quickly machinery and vehicles depreciate in costs, and even if you sell your equipment shortly after purchase, you will not make the ROI that you’d hoped for. Depending on the size of your business, sometimes purchasing basic equipment is essential for the company’s operations, but with other project-specific equipment, consider renting to avoid depreciation costs. This also eliminates any logistical delays that you may encounter, and it provides each job location with the resources needed to get the project finished in an efficient manner.
” You’ll only have to worry about a short-term storage solution
Again, depending on the size of your company and your premises, storing your equipment for long-term use may become difficult. Not only because of space but also because of safety, protection and harsh weather conditions. All of these factors contribute to the depreciation of your units. However, with rentals, it is the exact opposite. Of course, you’ll need to consider safety and storage, but only for a short period of time. And, because of the time frame, you’ll be able to plan the logistics of it.
Every company has different requirements, so as much as renting will work for most, for others this is not the only option. It’s important to determine the best possible plan that meets your business requirements, to help maximise time, profit and efficiency. A combination of rented and purchased equipment may just do your business wonders. Each has their own advantages, so take the time to consider everything.