The Top 10 Benefits of Rental Equipment

When you’ve got big projects on the go, it’s critical to have access to the right equipment for the job. By partnering with top construction equipment rental providers, you’ll be sure to get top-of-the-line equipment so you can get contracts done faster and smarter. When you rent from The Cat® Rental Store, you’ll take advantage of many benefits of equipment rentals for improving your bottom line.

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Advantages of Renting Construction Equipment

The answer to the question, "Why rent construction equipment?" is an easy one — you save money, can access the newest technology and never need to worry about pesky upkeep issues. While buying machinery can make sense for larger companies that have the cash to spend, many small to medium-sized companies can reap various benefits from renting instead of buying. The following describes some of the main reasons companies rent:

1. No Repair Costs

Contractors who rely on dependable, well-serviced heavy equipment rentals don’t have the ongoing responsibility of repairs and maintenance that all heavy equipment requires to remain in top condition.

Owning your own construction equipment provides your business with a capital asset but has the added factor of repair and maintenance costs to extend the equipment’s life cycle. Contractors who rent heavy equipment from trusted suppliers can be confident that their equipment is always dependable and operates at peak performance. That’s because all repairs and servicing are done in-house by the supplier’s expert technicians.

When you choose to rent equipment, you’ll avoid some of the following costs in both time and money:

  • Leasing or buying workshop space to conduct repairs and maintenance
  • Buying tools and equipment to perform repairs and maintenance
  • Sourcing and purchasing machine parts and stocking parts inventory
  • Covering technician labor costs
  • Funding emergency repairs from unexpected equipment breakdowns
  • Managing equipment records, including hours of operation, wear and tear and parts replacements
  • Scheduling and coordinating ongoing preventive maintenance

In addition to the direct costs of repair and maintenance, nonproductive equipment time due to repair needs also costs contractors. Whenever construction equipment isn’t in use, it’s wasted time that erodes a project’s productivity and cuts into the contractor’s profitability. For contractors who rent their equipment, the risk of interruptions in production time due to equipment repair needs is virtually eliminated.

2. Reduce Your Disposal Costs

Another long-term benefit of heavy equipment rental is that contractors who rent their equipment have no concern over disposal and resale costs. Owning equipment requires a dedicated plan to retain the asset’s value over time. When it’s time to invest in new equipment or sell off existing equipment, equipment owners need to be sure they’ll get as much value as possible from their disposal.

Renting equipment eliminates the responsibility of preparing your machine for resale. Here are some of the costs associated with equipment resale that you don’t have to be concerned with when renting machinery:

  • Avoid preventive maintenance costs required to retain equipment value
  • Eliminate the need to market your equipment resale
  • Avoid equipment broker costs to help facilitate equipment resale
  • Prevent being subject to lower market-value when selling in a downturned economy

Renting equipment gives contractors the peace of mind in knowing that they aren’t responsible for the maintenance and upkeep necessary to retain the machine’s value. Additionally, some contractors don't use their equipment as much as initially intended and may have an immediate need to liquidate their asset. Contractors who rent equipment don’t feel the pressure of having to sell-off machines when market conditions fluctuate.

Renting equipment can help prevent the constraint of long-term commitments in certain cases. By partnering with the right rental provider, you’ll be sure to always get well-maintained equipment even just for short-term use.

3. Flexibility to Support Your Demand

For many industries, balancing and managing multiple projects at once is a normal practice and sharing equipment between different locations isn’t feasible. When working on several short-term jobs at once, it’s likely more cost-effective, timely and practical to rent equipment versus sharing.

Experienced contractors know that no two jobs are equal. Each job has unique requirements, whether it’s in project scale or specific scope details. For this reason, having the flexibility to source the right equipment for a particular job whenever you need it is a tremendous asset.

Tough construction jobs can sometimes bring up unexpected hurdles, even for the most prepared contractor. Emergencies such as unforeseen work and re-work, equipment failures or canceled equipment operating contracts can delay project completion and cause project costs to rise.

If you’ve ever been faced with equipment shortages for any reason, you know how helpful it is to have the ability to fill in gaps on short-notice. This type of flexibility is becoming increasingly more desirable. In today’s challenging business environment, contractors can gain a competitive advantage with fast and flexible equipment rental solutions from trusted suppliers like Cat Rental Stores.

Partnering with the right supplier ensures you get the flexibility you need to complete the job with the most efficient equipment available. Whether you're taking on a new type of project or have unplanned or emergency equipment needs that arise during production, rental suppliers like The Cat Rental Store can help you get the job done without delay. For contractors, one of the most practical equipment rental benefits is knowing that you always have solutions available from a local supplier.

4. Minimize Your Equipment Fleet

Contracting businesses naturally evolve. While many contractors start out offering a select few services, many eventually grow to provide additional works. Many companies make the jump from residential to commercial and eventually into industrial contracts. This type of growth is excellent for companies, subcontractors and suppliers alike.

With business expansion comes the added need for newer, bigger equipment with more offerings or different applications. Renting equipment to fill in these new needs allows you to quickly and efficiently expand without the responsibility of managing more equipment yourself. You can conveniently ramp up production without spending the time securing financing to cover capital expenditures. The rental market for construction equipment has grown significantly in recent years for this exact reason — contractors want access to a full line of equipment and applications to fulfill immediate needs on an ongoing or short-term basis. But they don't want to keep a large fleet themselves.

Having the option to rent equipment gives you many more options without having to expend your own fleet. Many contractors take a hybrid approach where they own their core pieces of equipment and supplement with rental equipment on an as-needed basis to boost their production capacities. Having a go-to rental provider allows you to take on more projects and not leave money on the table.

5. The Right Equipment for the Job

Being locked into the wrong equipment for the job can strain your project’s bottom line. Equipment that’s too small for the job causes operators to double their efforts. With earthmoving equipment, for example, models with too small load capacities force operators to move materials in more trips than necessary compared to if they have access to equipment with higher load capacity.

On the other hand, equipment that’s too big for the job comes with more safety and operating concerns and can put workers and structures at unnecessary risk of injury or damage if used incorrectly. In addition to choosing the right size equipment, it’s also crucial to get equipment with the right specifications for the job. Different equipment types have a variety of models, each with their own unique features designed for specific applications. Working with equipment that isn’t designed for your needs is inefficient and wastes time.

Renting your equipment can give you access to a variety of models to fulfill each job’s scope. However, not all equipment dealers are made equal. When choosing a supplier, it’s critical to go with one that has an extensive inventory network capable of sourcing the right equipment for your job. Some equipment rental outlets may not have the equipment you need when you need it, forcing you to settle with something too big, too small or wrong for the job.

Cat Rental Stores have a massive distribution network of reliable, dependable equipment. Whatever equipment you need for the job, you can find through your local Cat Rental Store. Our equipment representatives also have the expertise to help you choose the right equipment for the job so you can complete your contracts more efficiently.

6. No Need for Storage

When it comes to owning construction equipment, your costs aren't just limited to the initial capital investment and maintenance. In addition to these costs, you'll also have to pay for storage when your equipment's not in use and for transportation to get it to jobsites.

For large pieces of equipment, you must make sure your facility can accommodate long-term storage to minimize damage to your tools — you can't just keep them outside where they could become damaged when exposed to inclement weather. Expansive storage facilities can cost a significant amount of money, greatly increasing your company’s overhead.

Storage costs can quickly add up when running a construction business. The more tools and equipment you own, the more warehousing space you’ll need to protect, organize and store it all. With increased warehouse space comes higher costs. In addition to the cost to rent or own the space, there's also the cost of insurance, security and monitoring that accompanies storing assets as valuable as construction equipment.

Renting equipment provides a huge benefit in keeping overhead costs low, including reducing the need for storage space. When you rent equipment, you return it when you’re done. There’s no need to make space available for it long-term. And there’s no need to invest in the security you’d need to keep your equipment safe from weather or theft. You’ll also avoid having to maintain the storage area or have equipment take up valuable real estate.

7. Control Project Costs

Renting equipment allows you to have more control over your project’s costs. Equipment rentals are considered hard costs — expenses you can get quoted from a supplier and that won’t fluctuate. Knowing upfront what your equipment costs are can make it a lot easier to estimate a construction budget, resulting in a more profitable project.

With equipment rentals, your project costs are clear — the equipment rental fee your provider quoted you plus fuel costs. Depending on the dealer, you might also have insurance and deposits as additional expenses, but these can be factored into your total fixed rental cost on the project.

With equipment rentals, there are no surprise expenses. You simply pay for the equipment when you need it. Knowing ahead of time exactly what your equipment rental will cost can help you stick to your budget, allowing you to reserve funds for other significant investments your project may require.

You also don’t have to worry about the added expense of repairing or maintaining your equipment to meet emissions standards, if you operate in California or similar states that have strict emissions regulations. All of those inspections and repairs fall squarely on the shoulders of the rental company.

If you've ever owned heavy-duty construction equipment, you know the costs of insurance can go through the roof. For each machine that you purchase, you'll need to take out an insurance policy that covers it in case of damage and theft. While larger companies may be able to negotiate with insurance companies to lower their costs, smaller companies often struggle to exert any negotiating power, ending up with high premiums. 

By renting your equipment, you'll never have to worry about these insurance costs, as the company in question will assume responsibility for insurance. For companies that aren't in a position to negotiate with insurance companies for lower costs, not having to pay for insurance can save them a lot of money.

8. Gain Access to the Latest Technology

When you rent equipment from your local Cat Rental Store, you gain access to the newest equipment with the latest built-in technology. Construction equipment technology has significantly advanced over the last decade, filling a vital need that contractors had to be able to manage their projects more efficiently and improve profitability.

As companies need to get a long lifespan out of construction equipment after purchasing, they will likely have to keep using it even after it's gone obsolete. With the competition always looking for an edge, they'll find it if you're using outdated equipment. The newest tech makes it possible for jobs to be easier, safer and faster. If your competition has it and you don't, you're actively putting yourself at a disadvantage.

That’s where Cat Connect technology comes in. In construction, the Cat name brand is synonymous with technology that drives performance. We offer technology solutions to a wide range of challenges contractors face regularly. Whether you’re looking for equipment that has the latest in safety technology, or you want to tighten up operating costs, Cat Connect gives you invaluable safety information and operating data right at your fingertips.

One of the greatest benefits of equipment rentals is access to the latest technology you get by renting newer and more efficient Cat models. When you rent equipment from The Cat Rental Store, our equipment experts can match you with the right technology solution for your business goals. No matter what aspect of your project you’re looking to improve, Cat Connect can deliver a tailored application.

Technology is constantly evolving and with the competitive equipment rental market, companies are highly encouraged to always remain up-to-date with the latest machinery and technology available. By having access to the latest equipment models and features, you can complete jobs faster and more efficiently while ensuring all machinery is compliant with the latest safety and industry regulations.

9. Improve Cash Flow

When you own equipment, you must factor routine maintenance expenses, unexpected repair costs and professional training and salaries into your overall operating expenses throughout the duration of the machine’s lifespan. With rentals, you can eliminate these expenses, only worrying about these costs if they’re included in your rental agreement.

Renting equipment allows contractors to improve their cash flow because they aren’t required to make any capital investments and other associated expenditures. In addition to not having to invest capital outlay, contractors also earn more cash flow by avoiding repair costs and maintenance programs. You have the potential to recover up to 100% of your rental costs during the project by choosing rentals over outright purchases.

Access to more cash flow helps your business stay nimble, giving you the required capital to take on more projects at once. This flexibility is necessary when it comes to running a construction business. There’s always the possibility that something will go wrong or throw a wrench in the works, and having that cash flow cushion can make it easier to bounce back from these unforeseen problems.

Banks also look favorably on healthy rental relationships. In the eyes of a bank, rentals aren’t an investment liability, and keeping up with your account can give you better buying and borrowing power in the long run.

Rental equipment is an expense deduction that you can claim against your business taxes, allowing you to keep more money in your pocket. The regular cash flow you gain by choosing to rent equipment means you can reinvest your profits back into your company, whether that’s hiring more skilled tradespeople, investing in new construction software or ramping up sales and marketing efforts.

10. Try Before You Buy

As mentioned, many contractors today employ a hybrid approach to their equipment fleet. By having a mix of rented and owned equipment, contractors can remain flexible for any given project’s needs and stay as competitive as possible. By renting some of your equipment initially, you can “try before you buy.”

If you’re unsure of whether to go ahead with an investment in equipment ownership, then you can rent a similar machine as the one you’re thinking of buying. This way, you can test out the equipment on a few jobs first. You can see how it performs, how your operators like it and whether it’s the right model for you. This way, you can prevent buyer’s remorse of purchasing the wrong equipment for your needs. Being able to try before you buy is a smart business decision, and it allows you to keep operations running smoothly until you’ve made your decision.

11. New revenue sources

Certain projects likely require specialized equipment to complete the job in a timely, effective and correct way and purchasing certain tools may not be financially secure. By renting equipment you can save on upfront costs and expand your offerings.

12. No Transportation Costs

Typically, you can't just drive your construction equipment down to your worksite. Instead, you'll need to coordinate the transportation of these pieces of equipment from one location to another. To move equipment properly, you may need to rent or buy tractor-trailers to haul it. Occasionally, you may need to obtain wide load permits. 

On top of the transportation costs, you'll also need to pay personnel to load and unload the equipment. These transportation responsibilities can add to your current staff's duties, or you may have to pay contractors to do it for you, increasing your costs. 

For times where you don't need to transport your equipment from one place to another, you'll also need to pay for a space to store your equipment. As construction machinery is often large and bulky, your storage needs are going to be specialized. You'll likely need to find a warehouse space that can keep your storage equipment in top shape. 

Instead of having to deal with all of the logistics that come with storing and transporting construction equipment, you can choose to rent instead. The rental company will handle all of it for you, providing you with transportation. The rental company will drop and pick up the construction equipment, meaning that you don't have to ever worry about finding storage for your equipment.

13. No Capital Investment 

If you've ever looked into buying construction equipment, you know just how high the costs of buying it new can be. Often, companies will have to save their money for a long time to be able to afford to purchase a piece of equipment. With all the money that you save to buy the piece of equipment, you may be restricting your cash flow. 

For companies running right on the margins, the capital investment needed to purchase rental equipment can be too high and put them at too much risk. Though you can take on debt to purchase the equipment, it may not be worth it if you aren't constantly using the equipment. Taking on a loan can also put your company at risk, so it's important to consider all of your options.

By renting, you don't have to take on any debt, nor do you have to slow down cash flow as you save for the equipment. For smaller companies who may not need to use the same pieces of equipment job after job, renting can be a much more affordable option. 

A RANGE OF QUALITY RENTAL EQUIPMENT AT THE CAT® RENTAL STORE

When you decide to rent construction equipment, why not go straight to a leader in the industry? The Cat Rental Store has a full selection of Cat machines and work tools and equipment from more than 70 other brands. When you work with our global network of stores, you'll receive top-quality machinery, putting you leagues ahead of the competition. 

At The Cat® Rental Store, we offer the most diverse selection of construction equipment to accommodate a wide range of different project and maintenance needs. Our team is happy to work with you to find specific solutions that fit within your job expectations, completion schedules, and budget needs.

Check out our equipment offerings, including: 

Find a dealer close to your job site for all of your heavy equipment rental needs. If you have a job in mind and want to start planning, reach out to us today for a free quote. 
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