Construction companies and independent construction workers are provided with two options when it comes to getting needed equipment for the job. They can either purchase the needed equipment or rent it from equipment hiring companies like Lakeside Hire. Even though both options have their advantages, here are some of the reasons to hire construction equipment instead of buying them:
Cost Of Initial Purchase
Construction equipment like scaffolds and others can be very expensive. By renting, independent construction workers are provided with an opportunity to provide their clients with the best services by using the appropriate equipment and without running at a loss. This is because the cost of renting is significantly lower than that of purchasing.
Market Fluctuations
Due to many reasons, such as the effect of demands and supply, exchange rate, etc, the prices of the equipment construction workers are looking to buy might spike significantly. While some construction companies and workers might be able to afford it, many won’t be able to afford it. To be able to execute their project despite the spike in prices, construction workers simply need to rent the equipment they need. By doing so, they can save a considerable amount of money and finish their project on time.
Depreciation Of The Equipment’s Value
No matter how well maintained an equipment is, it will lose its value with time. Since the equipment bought is an asset to a company, then the company will have to deal with the depreciation cost. For instance, if a company chooses to sell a piece of equipment that was bought for about $10,000, potential buyers will likely want it for half the price it was purchased or less. In a situation whereby the equipment has not earned its worth, the company will surely have to sell it at a significant loss. However, all these can be avoided if the company opts for rental equipment.
Project Specific Equipment
There are different kinds of construction projects that a construction worker can undertake. Some projects may be frequent, and some may be executed once a while. Each of these projects has specific equipment that is used for its execution. While it is a great idea to own essential equipment as well as the equipment needed for frequent projects, it may be unwise to purchase the equipment for those projects that are only executed once in a while, especially if these occasional projects tend to require expensive heavy equipment. Therefore, it is wise to rent the equipment only when there is a need for them, rather than own them and not use them.
Equipment Storage
Most construction pieces of equipment tend to take up considerable space, and this may pose a problem for construction workers who don’t have offices or warehouses. There will be a need to rent out a storage space, and this is an extra expense that may set the construction workers back financially. Nevertheless, if they opt for equipment rentals, the construction workers don’t need to worry about this since they only need to get the equipment when they need it.
Repair And Maintenance Cost
Owning construction equipment inevitably means there will be maintenance costs since the equipment needs to be at their best at all times to ensure high efficiency. Also, equipment may go bad from time to time and need repair, and this will cost money. The construction workers don’t need to worry about these if they rent their equipment. This is because rental companies are the ones who will be responsible for maintaining and repairing the equipment.
Getting Up-To-Date Technology
Equipment manufacturers tend to put out new models of their equipment from time to time. These new models usually possess new technological updates that make for better efficiency in terms of their functions. Unfortunately, it is almost impossible to buy new models each time they are announced. However, if construction workers own an old model but need the new model for projects, they can simply hire the new model from an equipment hiring company.
In most cases, it is much more economical both in the short and long run to rent than to purchase. Additionally, it has been advised that equipment that isn’t used up to 60-70% of the time is better rented than purchased. When construction workers choose to rent, they should ensure to do so from equipment hire companies that adhere strictly to the highest standard of equipment maintenance.
