There are many benefits to equipment rental versus buying your own, and that’s probably why companies in the construction industry are increasingly resorting to renting equipment as opposed to buying their own. A study by the American Rental Association shows that 93% of construction companies rented equipment in 2019. Here is why you might benefit more from equipment rental as opposed to owning.
Save the Upfront Investment
Most of the heavier equipment that’s used in construction can take up a lot of investment. Unless you plan to use this equipment for a long time, you will probably be stuck with it until you sell it. That means you run the risk of either spending a lot of time on it as you are looking for buyers or failing to sell it at a fair cost. If you fail to sell it at the price you anticipated, that means a loss on your part. This is part of what makes buying equipment a hassle.
Avoid Operational Expenses
The money you pay when you buy equipment is only an initial investment. After the equipment has been delivered to you and it’s now in use, you will need to keep a small team to service the machines regularly. Apart from that, you must also buy parts, hydraulics, and fluids for replacements. Lastly, you will also need to upgrade your technology if there are any updates required. On the other hand, when you are renting equipment, all this will be taken care of by the equipment rental company. All you need to do is pay your rental fee.
No Depreciation Costs
When you buy machinery, there are some depreciation costs that you can not avoid. If you plan to keep the material for long, you will have to make a large investment into maintaining it, and this adds to your upfront purchase costs. Maintaining the equipment will also work in your favor if you want to be able to resell the equipment later. However, no matter how much you invest in maintaining the equipment, with time, depreciation will catch up to it, and you will find it a lot more difficult to recover the cost of your initial investment. This is why you must consider getting your equipment from an equipment rental company to avoid the losses associated with depreciation.
These are some of the advantages of renting equipment instead of purchasing your own. Many companies know this, hence the spike in equipment rental statistics. So if you want to operate smoothly without too many drawbacks, rental equipment is the way to go.