Construction companies come in all sizes, and while some of them own all sorts of construction equipment, many of them will only own some of what they use for each project that they do. The main reason for this is that construction equipment is expensive, but another reason is that this same equipment is also expensive to maintain and store. Most companies can save money in the long term by renting the equipment instead of owning it outright.
Another reason why renting construction equipment is popular is that some construction companies do not always need the same types of equipment for each job. Or, they may need a specific piece of construction equipment for one job and will never use it again. Therefore, they do not see the need to make a large purchase like that, as they would end up losing money later on.
Here are 7 reasons why many construction companies will choose to rent construction equipment instead of buying:
- Reliable and Well-Maintained Equipment All the Time
As mentioned above, when a construction company owns their own construction equipment, they are responsible for keeping it maintained and in working order. This is expensive and time consuming! However, when they rent their construction equipment, they are guaranteed to have a piece that is reliable and well-maintained. That means that they do not need to worry if it will work when they need it to or if it will break down in the middle of the job. The rental agencies log the hours that each piece of construction equipment has been used and once those numbers get too high, that specific piece is taken out of the rotation and is immediately replaced.
- The Latest Technological Features
Rental companies are always trying to stay ahead of their competition, which means that construction companies will benefit the most. Every rental company will want to offer the latest and best construction equipment and that includes the latest in technology. Those technological features may help a construction crew finish their work sooner or better than planned.
- Always Using the Right Equipment for the Job
There are times when construction companies simply use a piece of construction equipment because they have it and not because it is the best piece for the current job. That obviously can cause major problems, especially if it takes longer to do the job or the job is not being done properly. Therefore, it is essential for every construction company to rent the piece of equipment that they need for the job that they are currently doing.
- No Major Investment is Necessary
Construction equipment is expensive and that means that companies need to have a lot of money before they can purchase any of it. It can take some time for a company to have that much money, which is why construction equipment rental looks better and better for many of them.
- No Long-Term Storage Fees
Construction equipment is massive, and it needs to sit somewhere when it is not in use. While it would be easy to purchase a piece of land and have it all sitting out in the elements, that isn’t the proper way to store anything so expensive. Therefore, a storage building is necessary and the cost to construct and maintain one is more than most construction companies are willing to spend.
- No Depreciation Values are Needed to Keep Track Of
If a construction company does not own their construction equipment, then they do not need to take into account the depreciation of each one for tax purposes each year. Instead, they can just deduct the amount of the construction equipment rental every year, which is an easier number to figure out.
- Opportunity to Try Before Purchasing
There are times when construction companies think that they want a certain model or specific piece of equipment, but they are unsure if it will meet their current and future needs. The best way to check things out is for those companies to rent the equipment and try it out first. This can save a construction company from making a huge mistake and they may decide that they can do without the piece that they have been considering.
Here are some of the types of construction equipment that construction companies rent all the time:
- Landscaping Equipment
- Asphalt Rollers
Construction companies that are trying to determine whether they should rent or purchase a piece of construction equipment should take a few things into consideration as they are making their decision. These things include:
- How stable their company is financially
- The fact that rental equipment is not an asset to their company
- The amount of use they will get out of the equipment
- How much time is needed before they will receive the equipment if they rent it
- The amount of time that they would need the equipment to get the job done
The answers of those factors will allow a construction company to make an informed decision that will be best for them, their clients, and the work that they perform.