Reasons to Rent Construction Equipment
The current boom of the construction industry has left everyone in a frenzy to stay at the top. Plant hire or equipment rentals have been a growing market catering to the needs within the construction industry currently showcasing a rental revenue of nearly $38 billion dollars (North America). Ever changing industry requirements and advancements in technology has led to a remarkable rise in the heavy machinery industry.
Weather you chose to rent or buy heavy machinery, it is evident that having access to state of the art selection dictates the strength and direction the project moves in. One way to have the upper hand in the industry, is to weigh out the scenario and clientele involved to make the best use of options available.
Renting or hiring heavy equipment or construction machinery, however, seems to bring an added value to any project. Before moving forward, every firm or company must completely evaluate market conditions, and product requirements before investing large sums outside of the organisation. Therefore, looking into alternatives could be a massive aid to the organisation.
Things to consider
- Cost Control: The biggest advantage of renting equipment is the associated cost benefits. Purchasing new equipment generally comes with a lot of responsibility in terms of storage, maintenance and daily upkeep. A sure-fire way to avoid unnecessary add-ons is through renting. Not only does this prevent the stress of managing the storage facilities throughout the life cycle of the equipment, it also helps avoid any repair costs, unforeseen financial downturns. Moreover, renting equipment can also help improve cash flow for contractors as it does not require any capital investment allowing them to reinvest, any profits back to the organisation.
-Project – Specific/ Flexibility: As many would know it, the construction sector is vastly dynamic bringing in newer innovations each year. Each clientele has a new set of requirements. In order to get the task done in minimized timelines, requires the right use of resources. New innovations are designed to provide for project-specific requirements. Furthermore, renting out machinery also helps avoid logistical delays while outsourcing to multiple jobsites.
-Environmentally Friendly: Every smart city is centred around sustainable use of resources. Many developed countries now showcase consumption patterns that are simply unsustainable. One way to reduce adverse effects of use of ecological resources is through the use of ready-made products as opposed to investing in or manufacturing newer ones.
-Depreciation: As previously outlined, buying new machinery is a big decision for any business or organisation. Market fluctuations are generally out of control and tends to plummet over time based on demand. By hiring equipment from third party, any problems regarding depreciation can be avoided.
-No storage costs: Investing in more tools and equipment can quickly add up, demanding more space for warehousing. This in turn leads to higher costs. During uncertainty, or the changing nature of projects it is often advised to keep overhead costs low and avoid investing in storage costs long-term. Furthermore, added costs that come with security and anti-theft systems can also be avoided.