Small construction companies face a dramatically different work landscape than their larger counterparts, and their approaches to equipment acquisition can vary widely. Renting equipment can be a great option for both large and small construction firms. In particular, small businesses can especially benefit from the flexibility and versatility of renting equipment.
Let's take a closer look at renting and what it means for small construction firms.
Is Renting Equipment Better for Small Businesses?
The answer to this question depends on the nature of your specific company. Your finances, operational practices and the length of time you'll be using the equipment all factor into the decision. Overall, renting offers a wide range of benefits to small construction businesses:
- Low capital expenditure: Most small construction firms don't have a huge amount of money available for capital investments. Rentals eliminate that cost and make it easy to get essential equipment at a predictable and easy-to-manage price. Plus, renting can come in handy during tax season, since rentals are not considered liabilities.
- Versatility: When you rent equipment, you can get exactly what you need and better match the machinery to the task at hand — no undersized, oversized or mismatched equipment. You can also expand your fleet to meet changing requirements, such as a busy season or a big project. By renting, small companies can meet specific project needs they might not otherwise have the capability to take on.
- No maintenance or storage costs: Without a large fleet of machinery, you don't need to spend money on storage. You also get to skip the cost of maintenance, such as oil changes, filter changes and repairs, which can add up quickly. These tasks tend to require careful foresight and planning, and not all small companies have the manpower and resources to dedicate to those requirements.
- Try before you buy: Making a purchase decision can be tough without trying the equipment first. Rentals allow you to get this experience and see how a new piece of machinery would fit into your operation.
- New technology experiences: The try before you buy mentality is especially useful with the rate of technology development in the heavy equipment sector. Testing out some of the latest models can help you find gaps in your productivity and sell you on the newest machines that make a difference to your efficiency. You'll feel confident in your investment based on the difference its technology makes.
- Easy cost management: Managing capital investments often requires a decent amount of skilled labor and resources, and for many small businesses, that is easier said than done. Rentals are simple with easy-to-manage costs that don't affect your taxes near as much. You might even be able to get tax benefits, depending on the business you run.
- Limited transportation logistics: Getting your equipment from site to site can be challenging when you're a small operation. Renting allows you to keep your fleet at a manageable size for your transportation abilities. When it's time to rent machinery, your dealer can arrange transportation, so you don't have to.
- Protection from market fluctuation: The heavy equipment industry can be significantly affected by market fluctuations, machinery costs and available workers. Small operations need to be prepared for these economic changes, and the short-term commitment of renting makes it easier to face bigger challenges.
Renting equipment is an excellent way for small construction firms to keep pace in the market and meet the needs of a wide range of project types. Whether you need a small telehandler to get more wheels on the job site, a massive dozer or anything in between, The Cat® Rental Store can help.
Rent Equipment From The Cat® Rental Store
At The Cat® Rental Store, we carry various Cat machines to suit your job requirements. We also work with several other leading manufacturers in the industry to bring you quality across equipment types. Find machines from brands like Bomag, Synergy, Master Craft and more.
When it comes to helping small businesses grow and evolve, The Cat Rental Store offers a wide range of equipment and world-class customer service. Call 1-800-RENT-CAT or browse our online inventory to get started today.
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