One of the first things most folks think of when putting up a construction business is whether or not to buy equipment and heavy machinery to complete projects. While owning your own machinery and equipment has certain advantages, there are also some pros in renting them out instead.
Why Rent Construction Equipment?
Cut down on start-up costs.
There are a lot of things to consider in putting up a construction business. There’s a lot of expenses to go around — building or renting the proper office space, preparing different kinds of business permits and documents, hiring the right people, and getting the right suppliers.
Add to that the procurement of heavy machinery and equipment, which is expensive. It is a longterm investment that can eat up a lot of your finances. This financial decision can greatly affect your company’s overall performance, especially if you do not have much to spare at the onset.
Reduce expenses for maintenance and repairs.
In contrast, the good thing about buying your own equipment — whether brand new or used — is you can find the exact features you need for your projects and you have access to it anytime.
Repairs and maintenance are also not an issue because there are a lot of reputable companies that provide outstanding heavy machinery restoration and repair services. However, if you cannot afford to buy equipment at the moment, renting heavy machinery will spare you from repair, replacement, and restoration expenses.
No storage issues.
Storing heavy machinery and equipment for startups usually poses a big concern, especially if you do not have a large enough facility to house them. You can look to warehouses and storage yards for storage, but it comes with a hefty price tag. You have to consider that you won’t be using all of your equipment at the same time. Their idle time is dependent on the type of project you are working on, which will affect your bottom line at the end of the year. Renting construction equipment solves this big concern for you.
Rent only the equipment you need.
As mentioned above, the type of project will determine the type of equipment needed. Not all projects make use of all the equipment. While it is every contractor’s dream to own all types of heavy machinery, reality bites. Contractors can’t always purchase all the equipment they need.
Renting enables you to pick the right equipment for the job for as long as needed. If you’re working on several simultaneous projects that require the same equipment, renting gives you the flexibility of accommodating all of them without slowing down the other sites you’re working on.
Transport costs are cheaper.
Transporting equipment costs time and money. Often, this causes delays in the progress of a project, especially if you’re working on different projects at the same time. Renting heavy machinery and equipment saves you money and time from having to move them from one site to another.
Whether you decide to rent or buy equipment, take note that it is a decision that requires careful thought. It is not something to be decided on impulse. You have to consider both your short and long term goals on top of the resources you have on hand.