If you are in the construction industry, you need the right equipment to perform jobs efficiently and accurately. But it is no secret that purchasing construction equipment can be outrageously expensive. This is where renting construction equipment comes in.
For some reasons, renting construction equipment has grown in popularity. The rising price of equipment and an unstable market, which has prompted construction businesses to look for ways to reduce costs, are a couple of major factors in expanding equipment rentals.
Renting has increasingly become an ideal choice for many businesses, allowing them to lower costs and manage a more financially secure business. Here are top benefits your business will enjoy if you opt to rent construction equipment from experts such as National Dispatching.
1. Avoid the initial purchase cost.
Renting construction equipment is a common practice among businesses since it helps them keep costs down. Renting construction equipment is substantially less expensive than purchasing it outright. Furthermore, you won’t have to pay for maintenance, insurance, or other expenses that drive up ownership costs when you rent equipment.
Because equipment rental is less expensive, you may receive the tools you need without sacrificing the features that are important to you. With the correct rental equipment, you may start earning contracts and finishing jobs before you have the money to buy your own fleet, which frees up resources and allows more individuals to enter the sector.
2. You get the flexibility to meet the demand.
It is common practice in many industries to balance and manage many projects simultaneously, and sharing equipment among different sites is not practical. Renting equipment rather than sharing it is probably more economical, practical, and timely when working on numerous short-term projects.
Contractors with experience understand that no two tasks are the same. Whether in terms of project scale or precise scope elements, each task has its own needs. Because of this, being able to find the appropriate tools whenever you need them is a huge advantage.
By forming a partnership with the appropriate provider, you can be confident that you’ll be free to use the most effective tools for the job. Rental companies can assist you in completing your project without delay, whether you’re embarking on a novel endeavor or encountering unforeseen or urgent equipment needs during filming. Knowing that you can always get answers from a local source is one of the most useful advantages of equipment rental for contractors.
3. You don’t have to worry about depreciation costs.
Your personal equipment loses value over time. While some used devices retain their value better than others, they eventually lose some initial value. As a result, buying construction equipment usually results in a loss. You can also spend expenses for advertising or using an equipment broker should you sell the machinery in your fleet and buy a newer model.
Similar to other assets, rental equipment loses value over time, but because you won’t be responsible for selling the item once you’re done using it, your business won’t be impacted. Regarding taxes, rental payments can be far more advantageous than a sizable upfront purchase. While a new acquisition is an asset that depreciates over time, certain organizations may even be able to deduct these costs.
4. You don’t have to worry about storage space.
Companies that own equipment must have storage options for the equipment to be kept while it is not in use. Equipment that is improperly stored or exposed to extreme weather conditions may deteriorate more quickly. For construction enterprises, warehouse or storage space is an added expense. Your business may not need to worry about long-term storage if you can work out a deal with suppliers or vendors regarding the length of a rental. You’ll save money on storage, and the time it would have taken to figure out the logistics. Additionally, warehouse expenses can be very significant, particularly if you own a fleet of equipment. Contrarily, leasing has the power to eliminate these inconveniences.
5. No repairs and maintenance
When you own equipment, you must also consider the cost of upkeep and repair. Rental equipment needs to be maintained and repaired, but the costs will be far cheaper than purchased equipment. Vehicles and large machinery still need a lot of upkeep and maintenance to run securely and optimally. Companies must take maintenance and repair costs into account when buying equipment.
The time and labor costs involved with maintenance and repairs are less onerous and more affordable with rentals. Leasing relieves you of the additional stress of maintaining a piece of equipment during its full life cycle, which would otherwise add to your already hectic schedule.
6. Access to modern technology
Technology is frequently incorporated into new construction equipment to increase performance, safety, and efficiency. With the aid of this technology, operators can work more quickly and efficiently. Many construction teams and contractors cannot afford these changes due to the high cost of new equipment. However, by making the most recent construction technology accessible temporarily and cost-effectively, rental firms such as National Dispatching improve its accessibility.
7. Improved cash flow
When you own equipment, your total operating costs for the course of the machine’s lifespan must account for routine maintenance costs, unforeseen repair expenditures, as well as professional training and compensation. With rentals, you can do away with these expenditures; you only need to be concerned about them if they’re mentioned in your rental agreement.
Due to the lack of capital investments and other related costs, renting equipment enables contractors to increase their cash flow. Contractors save money on capital expenditure and generate additional cash flow by eliminating maintenance and repair charges. By opting for rentals rather than outright purchases, you can recoup up to 100% of your rental expenses during the project.
Having additional cash flow keeps your company agile and provides you with the funds you need to handle multiple projects at once. This adaptability is essential for managing a construction company. There’s always a chance that something may go wrong or cause a hiccup, and having that cash flow cushion can make it simpler to recover from these unanticipated issues.
Angela Spearman is a journalist at EzineMark who enjoys writing about the latest trending technology and business news.
