Benefits of Renting Construction Equipments
Like most of the other industries, construction is a capital intensive occupation. And one of the major cost involved is the cost of the equipments. Thus renting equipments had become the norm in recent years which helps the companies to cut costs and run a more financially stable construction business. Let’s find out and learn some of the reasons why companies prefer to rent equipments instead of procuring them, here are some of the benefits:
Project-Specific Rentals
With different projects to deal and each of them having their own unique requirements, companies often need different equipments for different sites they are dealing with. Rather than incurring logistical costs of transferring equipment from one site to another, companies often consider renting specific pieces of equipment for particular projects. This not only eliminates logistical delays but also helps to avoid any unwanted delays in the project.
Forgo the Upfront Capital Investment
Equipments cost a lot nowadays. Having to procure any equipment means tying up a huge amount of capital into that equipment until and unless it’s sold. Even if the equipment is operated well over its life, sales offers might come in lower than you might like. Thus by not having a large sum of money tied up in a piece of equipment frees up working capital which might be used for other important business operation.
No Depreciation Costs
Continuing from the previous point. Even if a company procures a piece of equipment, they will have to incur the cost of depreciation from day one of the ownership. Even if the equipment is well maintained which also requires quite a large capital on top of already upfront capital investment. Thus as the value continues to depreciate over time it makes it even difficult to recover the initial investment.
Can Help You Navigate Through Market Fluctuation
It is a known fact that the construction sector is one of the most dynamic sector and there are so many factors which can influence the market. The project availability is also therefore very dynamic and which is something out of our control. Renting equipment provides that cushion which can help the company from any unpredictable financial downturns that may arise due to the fluctuations in the market. Therefore leasing gives you that flexible option which makes it easier to tackle such ups and downs.
No Storage Costs
Most of the equipments are quite bulky and require a considerable storage space in order to store them safely once the a project gets over before shifting them to another site and this can be very capital intensive. And this is something which can be easily avoided of the equipments are rented from a construction equipment rental.
Logistics Challenges
By renting equipment from other companies, you can avoid transportation charges of transporting equipment from one site to another. Transportation is not only an additional expense but also require great expertise to transport huge equipments from one place to another. Also due to unforeseen circumstances it can cause unnecessary delays thereby causing the project to miss important milestones and deadlines. Renting allows you to avoid these burdens and therefore provides a more reliable equipment option by keeping pieces onsite.
Get the Benefit of Up-to-Date Technology
With the ever growing competition between the constriction equipment rental companies, companies tend to offer recent generation machines which increases the productivity of the end user and gets the job done faster. Moreover, renting gives additional benefit of getting hands on the latest and fastest machines at subsidized rates without actually having to invest huge sum of money into them and owning expenses.
Opportunity To Use Them
One of the benefit which probably stands out from the rest of them is the ability to get an hands on experience of a piece of equipment before actually thinking to but it. This can help you decide whether you actually want to spend big bucks on owning the equipment over a long period of time.
Though this article outlines the benefits of renting equipments, different companies have different ways of operating and in most of the cases a mix of rental equipments and purchases works the best and gives the most productive overall outcome.
Types of Construction Vehicles
