The concept of renting construction equipment became popular for a number of reasons. A few of the most common contributors to the demand of equipment rentals include the increasing cost of purchasing equipment as well as an ever changing market that has caused construction companies to look for ways to save money wherever possible. In such scenarios, renting construction equipment has become a viable option for numerous companies as it provides them the ability to reduce costs and run a more financially stable business.
Some of the notable benefits that every company can enjoy when they choose to rent construction equipment are:
Eliminate the initial purchase cost
Purchasing brand new construction equipment can be extremely costly and can have a big impact on your company’s budget. Furthermore, purchasing construction equipment is a long-term investment that can often tie you down and also block your capital. Renting or leasing the equipment gives companies the ability of avoiding upfront costs that are associated with purchasing and allows them to allocate their financial resources in a better way.
Protection from market fluctuation
The construction industry is a dynamic one and there are a number of things that can have an impact on the market. Sinking or rising costs of equipment or the number of jobs that are available are all factors out of a business’s control. When you choose to rent equipment rather than invest in it, it cushions your company from any unexpected movements in the market. You will not commit your funds to a piece of equipment and this enables you to face any financial downturns easily. Renting proves to be a flexible option that makes it easier for businesses to handle the rise and fall of the market forces.
Typically, construction companies handle a lot of projects at once. You can rent specific pieces of equipment for certain projects instead of incurring the logistical costs of transferring your equipment and sharing it amongst multiple jobs. This can get rid of any logistical delays and ensures that every jobsite has the appropriate resources for getting the project done efficiently. Likewise, some projects require a specific piece of equipment and buying it for a single job is a waste of money. For instance, you can get a mini excavator for rent rather than purchasing it for a project.
No depreciation costs
Owning any kind of machinery or equipment means that you have to incur significant depreciation costs. Reselling the equipment and maintaining it for as long as you can requires you to make a large investment, on top of the initial cost you incur. When the value of the equipment continues to depreciate, it can become more difficult for the business to recover the cost of their initial investment. While all companies tend to operate differently, you can simply rent construction equipment to avoid any losses associated with depreciation.
These are some of the notable benefits that every construction company can get when they decide to rent construction equipment rather than buying it.