When you're looking to use heavy-duty machinery at a job, your first stop should be The Cat® Rental Store. Though many companies and individuals often favor buying construction equipment, construction professionals are also starting to see the benefits of renting equipment. With construction equipment constantly incorporating new technologies and companies taking on a diverse selection of jobs, the flexibility of rental equipment is becoming increasingly useful.
If you're a company that uses construction equipment at your worksites, you'll want to consider the benefits that come with renting before you make a decision.
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:
One of the main reason companies choose to rent rather than buy construction equipment is the ability to use the most updated technology on the market. Companies that purchase equipment will likely have to use that construction equipment for a set period to pay it off and get a significant amount of value from it.
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 With the competition always looking for an edge, they'll find it if you're using outdated equipment.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.
By renting equipment, you can be sure that you're always getting the newest equipment with upgrades that can improve the quality or speed of your work. A rental company is likely only going to offer technology that's no more than two years old, meaning that your staff will always have the most up-to-date equipment available to them.
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.
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.
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.
Along with the costs associated with insurance, you'll also run into maintenance costs when you own equipment. If a machine is damaged on the worksite or simply needs an annual tune-up, you'll be the one shelling out the cash to get the equipment operable again. A string of bad luck that leads to major repairs can do a number on a company's budget.
When you rent, you'll avoid having to pay any maintenance costs. Most rental companies will factor any insurance or maintenance costs into their rates for the rentals they offer. As such, you won't have any unexpected costs. Additionally, you'll never have to dedicate any of your staff's time to repair damaged machines.
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.
When you decide to rent construction equipment, why not go straight to a leader in the industry? The Cat Rental Store has everything from excavators and backhoes to pavers and skid steer loaders. When you work with our global network of stores, you'll receive top-quality machinery, putting you leagues ahead of the competition.