To purchase or rent equipment is a big question that lingers in the minds of most contractors in the construction space. Conveyors, skid steers, excavators, trucks, hoists, graders, and trenchers are some of the heavy equipment required in a typical construction site. Due to unpredictability in the market and the increased cost of buying construction machinery, most construction companies result in rental equipment.
Here are reasons why most construction companies prefer renting as opposed to buying these pieces of equipment:
1. Huge Upfront Investment
Purchasing a new tracked dozer, telehandler, or excavator can be a significant capital cost that can strain most construction companies’ bank balances. When you buy a piece of equipment, your money will be held until you resell it, and if you keep it long, the resale offers may be lower than you expect. Not having a significant amount of capital tied up in a piece of construction equipment helps you save money and concentrate on other essential aspects of your business.
2. Increased Maintenance and Repair Costs
When you buy equipment, you must consider the cost of repair and maintenance. Although rental equipment is subject to maintenance and repairs, the price may be significantly lower and can be partly covered by the rental company.
Renting takes off the burden of worrying about repairing and maintaining the equipment throughout its entire life cycle. Besides, leasing allows you to concentrate on the near future instead of focusing on having a long-term maintenance plan.
3. Depreciation Costs
When you own a piece of equipment, you will incur depreciation costs. Maintaining the equipment and reselling it requires considerable investment on top of the upfront cost. As these types of equipment depreciate, it becomes impossible to recover the amount paid for the initial investment. Renting equipment allows you to avoid depreciation costs, thus saving money to focus on other issues that may arise.
4. Long-term Commitment
Owning a piece of equipment for a long time can cause anxiety. These types of equipment require a lot of money and must be kept running throughout their useful life. When you purchase a piece of equipment, you might have to track its warranty, make service-contract decisions, and choose the right financing option.
It feels great to own construction machinery, but it comes with duties like compliance with regulations, servicing, and upgrades throughout the years. If you are anxious about owning heavy equipment’s long-term implications and obligations, renting may be a suitable option.
5. Storage and Transport Logistics
You might consider a short or long-term storage plan if you purchase heavy equipment. The last thing you want is to leave your valuable equipment to get damaged by driving rain, blazing sun, and blustery wind. Storage and transport costs can be expensive, mainly when your job entails moving the equipment from one job site to another.
Renting equipment can save you from the worry of transporting heavy machinery to job sites. The rental company will pick up and deliver the machinery whenever needed, and this helps you streamline operations and save on storage and transportation costs.
Conveying & Hoisting Solutions Equipment Rentals
Whether you need a material hoist, ladder lift, rubbish chute, arm hoist, or construction hoist, you can always get top-quality and the latest machinery from Conveying & Hoisting Solutions. We have the equipment you need to complete small- or large-scale projects. Contact us today to learn more about our equipment rental services and get a free quote.