If you are in the construction business, you will often need earth-moving equipment, such as cranes, bulldozers, tractors, trucks, to complete your project. You have two options when it comes to this need: buy or rent. Between the two, equipment rental is better because of the benefits it offers.
Here are some of them:
1. Less Investment in Capital
When you rent equipment, you only pay for the time you will be using it. Buying means you will need to pay for the entire value of the equipment regardless if you will be using it or not.
2. Less Maintenance and Repair Cost
When you rent equipment, the supplier guarantees that it will be working for the entire duration of the rental contract. The supplier will take care of any necessary maintenance and repairs. The supplier should likewise replace non-working equipment that could cause you downtime.
3. Less Storage Cost
If you own the equipment, you will have to worry about storage costs (i.e., space and security) during the times that they will not be used. This is not the case with equipment rental, wherein storage becomes the problem of the supplier.
4. Getting the Equipment You Need
If you own the equipment, you will need use it for a particular job even if it may not be the ideal equipment to use. This may result in inefficiencies that could translate to additional and unnecessary costs on your end. If you opt for rentals, you can specify exactly what you need to get the job done and it is the responsibility of the supplier to make sure you get this.
The major issue of the construction businesses is the seasonality of the industry. Whilst there will be times when projects never seem to end, the reality is, they do. Renting equipment is a good strategy, which ensures that you will have the equipment you need when you need it without worrying about the cost of keeping them when you don’t.