Heavy Equipment Rental Businesses - Enumerate Factors to Consider Before Renting

An unpredictable market and the rising cost of purchasing and maintaining equipment has forced construction companies to find ways to save money wherever they can. Renting of construction equipment has increased as a result and in many instances, it has become the most practical option for a lot of companies, allowing them to control cost and run their businesses in a more financially stable manner. 

Renting helps project managers avoid up-front investment

Most construction machinery is designed for heavy duty work and are not just large and over-dimensional but are also quite expensive. Buying equipment like a bulldozer or a front loader requires serious cash and it may not always be possible to make the investment when it is most needed by the project. This is why there is a clear advantage of hiring the equipment on rent because it does not require the money to be paid upfront to be able to use the equipment.

Cuts the costs of repairs and maintenance

Project managers can be free from the hassle of expensive breakdowns as they will not be required to pay for regular maintenance checks when they hire the equipment on rent. In addition to substantial savings in money, renting construction equipment frees up the project manager’s mind from worries about maintaining the equipment which is also quite expensive. He can rest assured that the equipment at his disposal is of good quality and technology and he only pays for the duration he uses the equipment.

Market fluctuation doesn’t affect the project

When equipment is hired on rent it offers the construction company a level of safety from any unpredictable downturns in the economy as demand normally drops during such times, affecting business adversely. On the other hand, the construction sector may get influenced by many other factors like rising or falling costs of equipment or the number of jobs being generated, among others. All these factors cannot be controlled but businesses can be better prepared to survive their adverse impacts. Instead of investing big sums of money in owning equipment, construction companies can choose to hire them on rent as it offers them a flexible option that makes it easier to adjust to the rise and fall of market forces.

Avoiding depreciation costs

One big liability of owning machinery is depreciation costs that constantly eats away the resale value of the equipment. It becomes increasingly difficult to recover the cost of investment in such expensive equipment as value continues to depreciate. Maintaining equipment and then reselling them at a profit requires large investments in addition to the upfront cost of purchasing the equipment. Of course, companies have their own priorities, but renting construction equipment to avoid loses due to depreciation is gaining popularity. Project managers need to check out construction software that can help maximize utilization of their resources to better manage depreciation and other issues that may arise with ownership of equipment.

Project-specific hiring of equipment

In most cases, construction companies handle a number of projects simultaneously where the need for equipment may not be similar. Project managers should try to avoid transferring equipment and sharing them among multiple jobs as this is likely to lead to higher logistical costs across projects that often spiral out of control. They should therefore consider renting specific pieces of equipment for particular projects as this will eliminate the likely logistical delays that a project may face and provide each job-site with the right amount of resources to complete the project efficiently.

Bypassing equipment storage issues

Warehouse or storage space is always a substantial cost for construction companies that own equipment and are required to have storage solutions in place for the equipment when these are not in use. Construction equipment is expensive and should not be stored or exposed to elements like weather conditions that may cause faster depreciation or leave them exposed to cases of theft. Additionally, warehouse costs can be quite high, especially when it is about storing a fleet of equipment. Going for equipment rentals saves the time needed to plan out logistics as well as the cost of storage.