How renting construction equipment a cost-effective choice for contractors? Because of design problems, growing scope, erroneous projections, and other issues, construction projects sometimes exceed costs. As a result, construction companies are always seeking for new ways to save money and maximize their resources.
When compared to the operational costs of other industries, the cost of heavy construction equipment is relatively expensive. These equipment are not only expensive to buy, but also to operate and maintain. In addition, owning equipment has tax and insurance issues.
Construction equipment is one of a contractor’s largest cost centers, and it has a significant impact on their bottom line.
As a result, the trend of renting equipment is gaining traction in this industry.
The use of technology has helped to make the equipment rental procedure more streamlined and stress-free.
Telematics is making strides in the equipment rental industry, for example. Almost every OEM has developed their own telematics system for tracking equipment or worked with third-party vendors to do so. The technology keeps track of everything from battery levels to hydraulic fluid levels, which eliminates the need for routine maintenance.
Similarly, rental services such as Sharefox have entirely computerized the process of managing inventories, tracking orders, displaying equipment availability, and avoiding overbooking.
So, let’s have a look at how renting equipment might benefit construction companies.
Renting equipment is less expensive than purchasing it.
Heavy equipment’s total cost of ownership (TCO) is higher than the cost of renting it. Purchasing equipment is a significant investment that necessitates a large sum of money up advance. This high initial purchase price may have an adverse effect on the project budget.
Furthermore, committing such a large sum of money to equipment ties you down, leaving you with no resources to devote to other elements of the project.
Renting, on the other hand, provides contractors with the ideal opportunity to save money while still gaining access to cutting-edge equipment. Contractors can better deploy their resources as a result of this.
Maintenance and repair costs are kept to a minimum.
Owning construction equipment entails paying for its maintenance and repairs regardless of how much time it is in use. Owners of machinery and vehicles must invest in order to keep their equipment in good working order.
This is not only a significant expense, but it also results in downtime while the repair is carried out.
When contractors prefer to rent equipment, this problem is fully solved. Though renting machinery necessitates some maintenance and repair, these costs are not passed on to the next owner. The rental firm is responsible for the accompanying time and labor expenditures.
As a result, renting equipment allows you to save money on maintenance and guarantees that you have as little downtime as possible.
There’s no need to be concerned about depreciation.
The cost of depreciating construction vehicles and machinery is a significant expense for contractors who own equipment. Machines’ worth continues to deteriorate during their lives due to wear and tear, regardless of their performance.
This makes it difficult for contractors to recoup their initial investment when reselling their work.
As a result, contractors should think about how long they anticipate to utilize a piece of equipment before purchasing it. It isn’t worth the money to invest in equipment that will be obsolete in a few years. There will be no depreciation costs, thus your bottom line will not suffer.
Gives you more options
One of the most significant advantages of renting equipment is that it allows contractors to make more informed business decisions.
As previously said, purchasing equipment is a significant expenditure that will tie up a significant percentage of your resources for years. This restricts your ability to bid on or accept new projects.
Renting equipment, on the other hand, gives you greater flexibility because you can lease a variety of equipment depending on the tasks you’re working on.
Additional Expenses are Avoided
It’s easy to underestimate the additional costs of owning heavy construction equipment when calculating the total cost of ownership.
For example, because you own such large and expensive equipment, you need invest in suitable insurance to protect against theft and damage.
You’ll also need to store the equipment in an appropriate location to protect it from the elements. This implies you’ll need to invest in a storage area for it when it’s not in use.
Finally, transporting machinery to project locations is a time-consuming and expensive process. Transportation takes a lot of time and effort, which has an impact on the company’s production and project efficiency. Not to mention the time wasted as a result of delays.
All of these expenses added together might make a significant difference on your bottom line.
When renting equipment, on the other hand, you don’t have to worry about these issues because the rental firm handles them. As a result, these costs are shared among the renters through rental payments.
You also won’t have to worry about the logistics of storing and transferring the equipment.
As a result, contractors can rent equipment at a lower cost and with less worry.
Allows for easy equipment swapping
Investing in pricey heavy machinery is a risk. For example, you may discover after purchasing that the equipment isn’t what you thought or required for a specific project. Returns could be tricky in this situation.
When you rent equipment, though, it’s simple to exchange it for the exact size or model you require. This enables you to select the most suited equipment for your requirements.
Where to Sell Construction Equipment?
Buy Your Equipment is a factory-authorized dealer for a variety of manufacturers. We’ve been doing business in the United States and Canada for over 25 years. We are delighted to be the leading organization in the purchase of construction and heavy equipment/oil field equipment. When it comes time to sell construction equipment, Buy Your Equipment is always willing to assist. Our educated and courteous team will make it simple to sell your equipment. We cherish the chance to build long-term relationships with our clients by providing the finest customer service possible. On a daily basis, we purchase heavy equipment. Call us at 945-400-6965 or go to buyyourequipment.com.
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