When it comes to choosing between equipment rental or buying, like most things, the short answer is - it depends. More and more contractors are choosing to rent the equipment they need at the job site. Some construction companies are finding it advantageous to maintain a partial permanent fleet while renting out equipment for certain aspects of a particular project. Let’s take a closer look at equipment rental and how it compares to owning equipment.
Predictable Expense
One of the biggest reasons construction companies are renting is the predictable monthly expense. Having a pre-determined monthly line item helps with budgeting. Part of that budget is the transportation costs of the equipment. Costs to move equipment between jobs adds up quickly.
Up-to-Date Equipment
Construction equipment is a type of technology, and like all technology, it's always improving. The improved equipment results in more efficiency on the worksite. Equipment that gets the job done faster and has less mechanical issues can result in significant savings for companies.
No Storage Cost
One of the biggest expenses in owning equipment comes with storage. When you go with equipment rental, you're not paying for the storage fees and facility upkeep. The especially pays off when you’re working on a project far from your would-be storage facility.
Less Down Time
Equipment rental means less downtime and maintenance. When a critical piece of machinery goes down on a project, it can cause the entire project to stop until repairs are made. Depending on the severity of the breakdown, it can cause days of lost time. When you're renting equipment, you can simply swap out the machine with the rental company and get back to work.
Lower Maintenance
Maintaining construction equipment take up valuable time and resources. When you eliminate the need to maintain a fleet, you free up your overhead and bottom line. Maintenance of rental equipment is very minimal and mostly requires minimal washing and keeping the oil and gas at proper levels.
When Should You Own Equipment?
With all the benefits of renting, you're probably wondering when it makes sense to buy equipment. If you already have the infrastructure in place to store and transport, adding a machine that you use regularly could make sense. Another advantage to owning is the flexibility it can offer with unexpected changes in project schedules. If the timing is right and the deadline is tight, you can quickly get your own equipment on-site and start working. Another benefit of owning is that owning equipment is deductible.
Got More Questions About Buying vs. Renting Equipment?
Give us a call and let us know your situation. We can help you better understand your options for renting equipment and if it makes sense for your company and upcoming projects.
