Pandemics. Natural disasters. Economic crises. Any of these events can have a major impact on your company's ability to conduct business. You may have less work to do, fewer workers available or a need to diversify the types of jobs you take on. One of the biggest factors your business should consider during these times is whether you buy or rent your equipment.
If you're considering renting equipment, you should learn more about the benefits of renting equipment and why it might be a better option for your company, especially when your business is facing uncertainty.
Whether it's a pandemic or a natural disaster, sometimes events occur that are out of your control and have a major impact on your business. Any good business will adjust to new conditions and make the best of it. One of the areas where you may need to adjust is in renting or buying equipment.
In a time where public health and disease are on everyone's mind, possibly making it harder to field a full staff or acquire as many new clients, your company may have less cash available or you may be trying to save money if business dries up. These conditions make it difficult for companies to feel confident in making any major investments or getting locked into long-term contracts or payment plans that come from buying equipment.
Companies often wonder whether they should rent or buy equipment, and that question becomes even more important in times when the country is in a crisis. Companies don't want to invest in something if they won't receive a strong return on their investment, and they also want to stay within a specific budget.
If you don't have the free capital to buy equipment or don't want to handle the maintenance associated with owning machines, you may want to rent instead. To understand how rental equipment can benefit your business, especially when your company is unsure of the future, check out some of the top advantages of utilizing rental equipment:
In an uncertain time, you probably don't want to be investing a significant amount of money in equipment you're not sure you'll need next year or even next month. Buying a piece of equipment puts you in a position where you have to commit to putting down a significant amount of cash for a machine or agreeing to a long-term payment plan. If you rent the equipment, you don't need to make any longterm commitments or spend significant amounts of money.
Besides not wanting to get locked into a long-term contract to pay off a piece of equipment, you may have suffered a loss of business due to unforeseen events. If this is the case, you may not have enough money available to put down a down payment on the equipment. Even with decreased cash flow, you'll still have projects to complete. Renting equipment can be much more affordable and keep you working even in times of crisis.
When you buy equipment, you have to also factor in the costs of conducting maintenance tasks and covering any needed repairs. These costs can range significantly from doing simple maintenance inspections to having to replace a motor. As a result, buying the equipment throws even more uncertainty into the mix.
A major advantage of renting equipment comes from not having to worry about repair costs. The dealer will handle repair and maintenance issues, taking those costs away from the company renting the equipment. Without any worry about having to pay for technicians to conduct repairs or purchase parts, your company can better prepare for the future.
Renting also means you won't end up getting blindsided by unexpected repairs, which can help you stay within a tight budget. Additionally, you don't have to allocate any staff from your possibly restricted workforce to go about any maintenance duties, letting them focus on more profitable tasks.
You may need to take on clients you normally wouldn't to make ends meet or diversify your services to be better prepared for circumstances that impact your primary client base the hardest. If you've bought equipment, it's going to be much harder for you to adjust your company to these new clients. You'll have more capital tied up in specialized equipment that may make it difficult for your company to branch out their services.
If you own the machines, you can't quickly swap them out to meet new demands. In contrast, rental equipment has no long term commitment and allows your company to meet changing demands with ease. Don't need a skid steer loader anymore? No problem. Swap it out for the wheel excavator your newest job requires. As a result of this equipment flexibility, you get an increased ability to handle more jobs in a cost-effective manner.
When your facing uncertainty, you want to keep your fleet lean. When you own lots of equipment, you see increases to your storage, transportation, maintenance, fuel and disposal costs. These costs can add up significantly, and if you don't use all of the equipment regularly, you could be spending more than you need to.
Though you may have a couple of machines you need to keep in your company's fleet, you can save money and time by renting instead of buying. You can quickly rent specialty equipment instead of buying something you're not sure you'll need again. Keep your fleet lean by renting temporary equipment rather than buying equipment you have to make payments on and take care of no matter how little you use it.
Rental equipment comes with the best technology. With changing environments and work needs, you should have the most updated equipment in your corner designed to meet the changing needs of the business environment. When you rent, you can get equipment outfitted with the latest features and tech.
When you need high-quality, affordable rental equipment, The Cat® Rental Store should be your go-to vendor. We offer a variety of Cat products that you can rent quickly and switch out for new pieces of equipment when your needs change. In uncertain times, trust one of the biggest and most reliable names in the construction industry for your equipment.