No matter what industry it is, companies are looking for any and every competitive edge they can get. They are constantly poring over their balance sheets and considering different aspects of the business in order to gain advantage. When it comes to construction businesses, they have the option of switching to equipment rental, rather than purchasing what they need. If you have big and multiple projects, you will require access to the right equipment for every job and this can lead to heavy expenditure. By opting to partner with the top providers of construction equipment rental services, you will have no problems in getting access to top-of-the-line equipment that can help you get contracts done smarter and faster.
Some of the prominent benefits of equipment rental as opposed to ownership are outlined as follows:
- No repair costs
When you rely on well-serviced, dependable heavy equipment rentals, then you don’t have to deal with the responsibility of the repairs and maintenance required by all heavy equipment in order to keep it in top condition. When businesses have their own construction equipment, it does provide them with a capital asset, but they also have to deal with the repair and maintenance costs for extending the lifecycle of the equipment. But, when they are renting heavy equipment from trusted companies, they can rest assured that the equipment will always operate at peak performance and is dependable.
This is due to the fact that the supplier is responsible for the repair and servicing of the equipment. Choosing to rent equipment can help you save on a lot of costs, including the cost of purchasing tools and equipment for performing repairs and maintenance, funding emergency repairs due to unexpected breakdowns, paying for technician labor costs and sourcing and buying machine parts.
- Reduce disposal costs
Another long-term advantage that you can enjoy through equipment rental is that you don’t need to worry about the cost of resale and disposal of the equipment in question. A dedicated plan is required when you own the equipment in order to retain the value of the asset over time. When you have to sell off existing equipment or buy new equipment, you have to ensure that you can get as much possible value from the disposal. But, when you decide to rent equipment, you don’t have to worry about preparing your machine for resale.
This means that you don’t have to market it for resale and don’t need to deal with preventative maintenance costs for retaining equipment value. Hence, it will give you peace of mind knowing that when you rent equipment, you don’t have to be responsible for its upkeep for retaining its value.
- Flexibility to meet your demands
Experienced construction companies are aware that no two jobs are equal. Every job comes with unique requirements, which makes it a tremendous asset to be able to source the right equipment for a specific job. Even the most prepared contractor has to deal with some unexpected hurdles due to tough construction jobs. Emergencies, such as equipment failures, unforeseen work and re-work, or canceled contracts can increase project costs or delay project completion.
If you have had to deal with equipment shortages before, then you know that being able to fill the gap on short notice can be incredibly helpful. This type of flexibility is only possible when you are using a professional equipment rental company to fulfill your equipment needs.
- No need for storage
When you are running a construction business, your storage costs can add up quickly. The more equipment and tools you own, the more warehousing space will be required for protecting, storing and organizing it all. Increased warehouse space means higher costs. Not only do you have to deal with the cost of owning or renting the space, but there is also the cost of security, insurance and monitoring that also comes with storing assets that are as valuable as construction equipment.
Renting equipment can be extremely beneficial because you can keep your overhead costs low, which includes reduced costs of storage. You can simply return the rented equipment when you are done. You don’t have to have any space available for the long-term and you don’t have to invest in security for keeping it safe from theft or weather. You also don’t need to maintain the storage area or have your equipment take up valuable space.
- Get access to the latest technology
Renting equipment from a reliable equipment rental service gives you access to the latest equipment, which has the newest built-in technology. In the last decade, there has been significant advancement in construction equipment technology, which can improve profitability and help businesses in managing their projects more efficiently. Having to upgrade repeatedly can cost a construction business heavy sums of money, but when they decide to rent, they can get access to the latest machinery and not have to deal with the expense of having to buy it.
- Improved cash flow
Contractors are able to improve their cash flow when they decide to rent equipment because they don’t have to make any capital investments, or deal with any other associated expenditures. Apart from avoiding the capital outlay, they are also able to save cash by not having to deal with repair and maintenance of the equipment. Access to more cash flow can allow the business to stay nimble, which provides you with the required capital for taking on more projects.
Furthermore, rental equipment is an expense that can be claimed against business taxes, which enables the business to keep more money in its pocket. The regular cash flow they get by opting to rent the equipment means that the profits can then be invested into the company. This could involve hiring more skilled tradespeople, ramping up marketing and sales efforts, or investing in new construction software.
Apart from these benefits, renting equipment can also give construction businesses the opportunity of trying the equipment before they buy it and get the right equipment for the job, whenever needed.