Owning your own equipment may seem like the most viable solution if you have a construction company. Owning your equipment is convenient and workers can become skilled at using the same equipment over a long period of time. How the equipment is used and whether it is a good time to sell or trade is a decision that is up to the contractor and having that control may be a bonus. Owning equipment also builds equity in a company and can be an important factor when finances, taxes, and deductions are being considered. Buying is always an option to consider over the long term, but renting definitely has some advantages; there is a lower initial investment, access to broader ranges of equipment and maintenance, and insurance, etc is handled by another party.The positive points in owning equipment are numerous, but there are upsides to renting that should be considered
When equipment is purchased as new, maintenance is not an issue, but over time all equipment needs to be serviced to keep it working properly. Repairs are an ongoing and costly expense.When equipment is rented, the rental company is usually responsible for fixing or replacing it. In addition, owners and operators do not have to have detailed knowledge of how every piece of machinery works. For a company, it is reassuring to know that all the equipment being used will function at its’ greatest capacity.
Having current equipment that includes up to date technology can be an advantage for a contractor. Renting equipment can be done through apps as well as in person and the entire rental process can be easily completed. Several pieces of equipment can be rented at one time and monitoring each piece becomes simple. In addition, existing and historical orders and invoices for each unit can be accessed quickly. New and emerging technologies and equipment can be “test driven” before the company makes a decision to incorporate a particular piece of machinery into their business. Contractors have the opportunity to be kept up to date with all new technology when it is newly introduced to the market and the company does not have to contend with equipment becoming obsolete.
3. Duration of Project
The length of the project is a factor to consider when making the decision to rent. Determining the usage ratio will help a company determine whether renting is a good option. A short-term job makes the use of equipment less frequent and having the exact piece of machinery required for a specific job may be factors that influence the overall cost-effectiveness of the project.
Industrial equipment can take up space. If equipment is rented, the problem of finding storage space is eliminated. Saving a company space and eliminating the need to devote valuable storage space to equipment that doesn’t get used much, makes renting a better option.
What are other benefits of renting equipment? Let us know below!