If you are a contractor you are probably constantly trying to keep your operating costs down while trying to ensure the quality of your work. This can be a difficult balance, but many construction companies are benefiting from small steps that are lowering their overhead and still providing the same quality of service.
Advantages of Using Construction Equipment Rental Companies
Lower Equipment and Startup Costs
About 50% of newly manufactured construction equipment become tools for rent. The Most apparent benefit of renting equipment is the amount of money that is saved on having to purchase equipment, which many times means having to take a out loans. With Rental Equipment a contractor only needs to pay a daily rate. However, there are certain perks that can come with ownership, namely having the property readily available and also being able to sell the equipment if need be.
Rental Tools vs. Maintenance Costs
A significant amount of money is spent on the maintenance of construction equipment, and rightly so; it is important that all equipment meets with safety and operational standards. What this can mean for the construction company are significant costs in time, money and effort. Renting can eliminate these factors, the rental company is responsible for all heavy equipment repairs and maintenance.
Quality of Equipment
By renting tools, from equipment rental companies, contractors are not only able to get the perfect tools for the job, but also have access to the newest and best equipment.
After using the equipment there is always the matter of where to house it. A benefit of renting equipment is that you can avoid having to look for space to store the equipment. If you own the machinery, you will probably have to invest in a storage facility to keep your equipment out of the elements and safe. This can add up to be a significant amount of money.
Renting Isn’t for Everyone
While renting seems to be the perfect money saving answer, it might not be right for every company’s situation. If you have a specialized construction company, that is well established and you use the same equipment about 60% of the time, then maybe owning equipment might make better fiscal sense for you.
It seems that the trend of equipment rental in the construction industry is growing. Last year the equipment rental companies netted about $12.1 billion. According to projections this could increase to 14.3 billion by the end of 2015.