The Pros And Cons Of Renting Construction Equipment
If you own a construction company, you might occasionally be in need of heavy equipment like tractors and excavators. Depending on the type of work you do, the frequency and length of time you use this type of equipment can often determine whether you should buy or rent it. Here are some pros and cons of renting heavy construction equipment to help you decide which is option is best for you.
Pro: You save business capital by renting
Renting construction equipment is naturally less expensive, but also consider the savings you get overall with your business capital. If your business is relatively new, you have a lot to pay for. There is payroll, insurance, taxes, and various other types of tools, equipment, and safety gear for your employees. This doesn't even go into what you need in your administrative office, like furniture and office equipment. If you don't want to spend too much of your business capital upfront for equipment, renting the equipment can be a big help. Over time, you may decide that due to your increased profits, it is time to start purchasing some of this heavy equipment.
Con: Transporting the equipment can be a hassle
When you don't have immediate access to the equipment on the job site or where you store equipment for your construction business, it can be a burden. In some cases, you aren't fully prepared and find that you suddenly need to excavate a little sooner than originally suspected. The employee that does the excavating might be out of work for hours or even a day or so while you arrange rental of an excavator and other necessary equipment. You may find that you prefer the convenience of purchasing equipment so that it is always available when needed.
Pro: You may not always need the heavy equipment
A major consideration when deciding between buying or renting heavy equipment is how often you use it. You might find that right now, you only use a tractor about once a month or so, so purchasing this expensive piece of equipment and finding somewhere to store is it actually more of a hassle than simply renting it each time. On the other hand, if your construction business is starting to get busier, having it on hand can be a huge help, especially for the bigger projects, and save you from having to visit the rental place each and every time.
Con: There is a risk of equipment not being available
You expect equipment rental companies to have plenty of each type of equipment, but there is always the risk that everyone is renting all of one type of equipment. For example, you might be in dire need of a loader, but find that the local rental company has rented all of their loaders and the next one isn't available for a few days. This can be a complete halt on your business, or you may need to find another equipment company that is further away or more expensive.
Pro: Renting is all-inclusive
Also consider the extra things you need to do when you own the heavy construction equipment, such as getting it insured in case any damage is done to it. This is not something you need to worry about when renting it, since the rental company provides the insurance. Another thing rentals come with that purchasing your own equipment doesn't is maintenance and repairs. Unless you do serious damage to the equipment intentionally, you are not responsible for routine repairs, so every time you rent equipment, it should be in good condition.
To learn more about renting equipment and whether it is right for your business, contact a rental company like Summit Tool Rentals Division Of Wirtz Rentals.