So, you’re taking the plunge of a new construction business and are confused whether to buy machinery or rent lease equipment. Well, your decision about heavy equipment is a crucial one for completing your first project properly, effectively, and on time. So, you have to make a well-informed decision after evaluating all of the available options.
Your success as a construction company depends heavily on the equipment. You need reliable and up to date equipment from cranes to copiers. You can either buy or hire construction equipment and that’s your personal decision. But in both of the cases there are pros and cons to consider.
Your business is specific and so does the requirements. So, you need to access your available resources including your current financial state before jumping to conclusion. The other important factor is to evaluate the frequency of the equipment with which you have to work in your project.
Anyhow, in today’s article we’ve outlined the most common advantages and disadvantages of each available option.
Buying Machinery
When you buy machinery for your construction business it’s entirely yours. You’re the sole owner so you can use it whenever you want and wherever you want. Owning the equipment allows you to bid confidently on projects without worrying for required equipment. That is actually one way of expanding your business. You can expand your fleet of equipment and it will grow your business without any restrictions.
Even for the investment you can count on the resale value. In such a way you can buy new equipment with updated technology. But for such opportunities you need to rely on brands that can give the highest resale value in the market.
Although buying equipment has plethora of benefits but there’re always some drawbacks as well. You have to arrange the appropriate capital for the purchase. Moreover, after such a hefty investment, you still can’t foresee how many projects you get over the 5 years tenure. Such a scenario creates concern for underutilization of equipment. Owning equipment brings in a lot of responsibilities as well. You have to do maintenance and care of your equipment and any breakdown can be a major financial setback.
Renting Leasing Equipment
In projects or activities where you won’t need frequent use of machine equipment; renting can be the best pick. You don’t have to worry about the upfront costs and you don’t have to deal with maintenance and breakdowns either. Because you only hire an excavatorwhen you need it, there’s no question about underutilization of equipment.
Similarly, you don’t have to worry for the storage and proper upkeep of the equipment. The rental service providers take care of the equipment technology and they upgrade on their own and you can easily get the innovative technology from the market.
However, if you need some gadget frequently across the site then renting is not for you. With rental equipments you can’t make repute among clients because they consider this as a positive vote on how big your equipment fleet is.
So, as you see both the choices have their own pros and cons. So, it’s just your decision depending on your financial situation and the range of the projects you undertake.
To further elaborate let’s take a look at the example of a 5 tonne excavator rental hire company. Excavators are so much used across construction sites that many companies use its symbol on their emblem. So, if you’re involved in earth moving equipments where there’s extensive excavation work involved, the best way forward is to hire excavator rental services.
