It is one of the most impactful financial decisions for all construction companies, regardless of whether you're a large, medium, or small company. Do you rent or buy the construction equipment?
You've decided it's time you need some heavy trucks or equipment. Maybe you've got some big contracts coming down the pipe, you're expanding or growing your company's capabilities, or you just need to replace heavy equipment, such as a telehandler.
Here is an overview of some of the things you should bear in mind before deciding when to rent and when to buy equipment. There are a lot of important considerations when making such a strategic decision.
Is it cheaper to hire plant machinery?
It is also important to estimate the cost of renting equipment versus the cost of equipment ownership. Ownership comes with maintenance and operating costs, insurance and other fees such as government licensing and those costs vary from machine to machine. Renting is generally an inclusive cost, but given that a rental company has to turn a profit you should consider the rental fees. You'll probably have to pay to transport the equipment to and from the rental store as well, over and over.
Fuel is a cost that is common to both renting and owning and needs to be considered for both. Roughly, one-third of your total expenses will be for the cost of fuel your using.
However, you should think about why you are renting and what machine you need. If you only need your machine for a one-off job, then it is most likely best to consider going down the rental route.
Should I hire plant machinery for a long project?
Of all the things to consider, the frequency of jobs on the calendar or project length could be the deciding factor in whether you buy or rent equipment. If it is a short term job, or you need a specialized piece of equipment for a one-off job, then renting may make more sense. The risk is that if the machine isn't being used for the entire time it's rented due to changes in the project schedule or unforeseen hold-ups then you are spending money on a machine that's waiting and sitting, not making you money.
If you are working on a long project, or if you've got several jobs on the horizon, then buying probably makes sense given that rental costs add up quickly the longer a job goes on. A multi-purpose piece of equipment that can be used for various projects is a great asset to any job site.
The benefits of buying your own machines.
The big advantage of owning your own equipment is that it is available to you 24/7 as the saying goes, "if you own it, you control it". Before you decide whether to buy or rent, you should know the potential risk of a rental company not having the machine you need when you need it. Owning one can be a plus to potential clients too, who see it and know you're not only equipped to take on their job, but are a concerned, trustworthy, and stable business.
Where can I find plant hire near me?
Want to know how much it costs to rent the equipment you need? See pricing for all equipment and machinery online at Tiger Plant, or contact us today if you have any questions. Make sure to check out our FAQ page, and keep an eye on our blog for the latest news and information.