Renting a piece of construction equipment has increased in popularity for a variety of reasons. A few key contributors to the growth of equipment rentals include an unpredictable market and the rising cost of purchasing equipment which has forced construction companies to find other ways to save money wherever they can. In many instances, renting construction equipment has become an option for many companies, and provides them with the ability to run a more financially stable construction business and also the ability to cut costs.
The following are some benefits that your company will see if you decide to begin renting construction equipment.
Avoid the initial purchase cost
Buying brand new construction equipment is extremely expensive and can make a huge impact on how your company's budget. Purchasing equipment is a long term investment that ties you down to particular items. Leasing and renting construction equipment avoids the upfront costs associated with purchasing and also allows businesses to better allocate their financial resources.
Less maintenance and repair costs
When you own construction equipment, you also have to consider the cost of repair and maintenance. Although repair and maintenance are still important for rental equipment, costs will be significantly lowered compared to purchased equipment. Heavy machinery and vehicles require significant upkeep and maintenance in order to operate safely and at an optimal level. When purchasing equipment, companies should consider the repair and maintenance costs as well.
With equipment rentals, the time and labour costs associated with repairs and maintenance are lower and more manageable. Then worrying about maintaining a piece of equipment for its entire cycle, and also leasing removes this extra stress from your busy schedule.
Shielding from market fluctuation
The construction sector is dynamic and a lot of things may influence the market. Sinking and rising costs of equipment or the number of jobs available are all out of your control. Renting construction equipment is able to cushion your company from any unpredictable financial downturns that may arise. Rather than buying a piece of equipment, leasing allows for a flexible option that makes it more easier to handle the rise and fall of the market forces.
No depreciation costs
When you have your own machinery, you incur considerable depreciation costs. Reselling and maintaining it as long as possible requires a large investment on top of your upfront purchase. The value of it continues to depreciate, it makes it more difficult to recover the cost of your initial investment. All companies operate differently, consider renting equipment to avoid losses associated with depreciation. To better manage depreciation and other issues that may come out, see how construction software can help maximize utilization.
For more information about renting a piece of construction machinery, reach us on 01793 886444 or send us an email at firstname.lastname@example.org.