Business
The Benefits And Risks Of Heavy Equipment Rentals
Heavy equipment rentals have become a popular option for companies and individuals who need to carry out construction, demolition, or excavation projects. This is due to the high cost of purchasing and maintaining heavy equipment. Renting heavy equipment allows businesses to avoid the initial investment, maintenance, and storage costs of owning their equipment.
While there are many benefits to renting heavy equipment, some risks also need to be considered. This article will explore the benefits and risks of heavy equipment rentals.
Whether you are a construction company looking to complete a project, a homeowner needing landscaping equipment, or a small business owner looking to expand your capabilities, understanding the benefits and risks of heavy equipment rentals is crucial for making informed decisions. So, read on!
The Benefits Of Heavy Equipment Rentals
It’s essential to consider the advantages of renting before doing so. The benefits include the following:
- Flexible Access To Equipment
Easy access to heavy equipment is a challenge many contractors face while executing projects. A project’s scope might change, requiring new equipment to achieve its goals. Who will supply this equipment without compromising the budget?
Renting gives contractors easy access to the equipment they need, regardless of the urgency. As a plus, they can hire as many tools as they need for the project.
- No Initial Investment
Purchasing heavy equipment requires you to make a huge initial payment, even as you make other payments through installments. Getting the initial investment is often a headache, forcing some contractors to seek financing options like loans.
Tadano crane hire services have minimal financial burdens, both at the onset and in the future. In a typical rental agreement, you’ll make monthly payments for the duration of your use. This spreads out the cost and makes it less burdensome to pay off your equipment that way than if you had made one big payment upfront.
- Gives You A Competitive Edge
As a construction company, you want to stand out from the other companies that offer similar services as you. It’s the only way to win more clients and achieve your bottom lines, among them making profits.
Renting heavy equipment gives you a competitive edge. Most, if not all, rental companies invest in the best and latest equipment. Therefore, you’ll get access to the best in the market.
Advanced tools with the latest technology offer more efficiency than their predecessors. Therefore, you’ll be able to be productive and finish many projects within a short period. These tools also enable you to take on complex projects that are otherwise perceived as impossible. It’ll put your construction company in the limelight, bringing in the clients you most desire.
Overall, you’ll have more leverage than your competitors who don’t rent heavy equipment.
- No Maintenance Burden
Heavy equipment needs regular maintenance to work effectively. These maintenance practices include things like checking the oil and engine, making repairs and paying for insurance. But maintenance takes up time and money. You have to spend time maintaining the equipment instead of working on your project, and you also have to pay for the mechanic and other workers who do the maintenance.
Renting shifts all the maintenance responsibilities to the owner, the renting company. They’ll handle all repairs and replacements. Some of these rental companies will offer you convenience by giving you other heavy equipment as they repair what you previously had. This way, you won’t need to stop work to wait for the repairs.
However, it’s important to note that maintenance services differ from one provider to another. Inquire about the maintenance terms of your chosen rental company before getting into an agreement.
The Risks Of Heavy Equipment Rentals
Now that you’re aware of the benefits, it’s essential to understand the risks of renting:
- There Is No ROI
Return on investment (ROI) is an aspect most investors seek as they make investments. This includes heavy equipment. Hence, you hope to reap profits from it.
If you rent equipment, you’re just spending money each month. You don’t build equity over time like when you own the equipment. Moreover, with investments, you can resell it to acquire a fraction of what you spent initially. But with renting, there’s no recovery.
- It Is Expensive In The Long Run
As stated, renting requires you to make regular payments monthly over the period you’ll use the equipment.
In the short term, renting is a viable option since the overall amount you’ll pay won’t equate to what you’d have paid for its purchase. However, if you’re renting long-term, there’s a possibility of it being too expensive.
Assume the purchasing price of your chosen heavy equipment is USD$20,000. To rent, you require to make monthly payments of USD$1,000. Suppose you’re renting for 24 months; your total expenditure will be USD$24,000. This is much higher than the equipment’s purchasing price; hence, it’ll be a loss.
As a precaution, always consider the length of your rental period and do your calculations against the initial price to know the viability of your choice.
Conclusion
Opting to rent heavy equipment for your construction projects can be beneficial or detrimental. The discussion above shows how the two ends present themself. With this insight, you’re better placed to decide whether to buy or rent. Weigh the benefits and the risks and make a choice.
Kenneth is a proud native of sydney, born and raised there. However, he pursued his education abroad and studied in Australia. Kenneth has worked as a journalist for almost a decade, making valuable contributions to prominent publications such as Yahoo News and The Verge. Currently, he serves as a journalist for The Hear Up, where he focuses on covering climate and science news. You can reach Kenneth at [email protected].
