More and more construction companies are utilizing the cost-saving benefits of renting equipment. Contractors are always looking for ways to improve their work processes and save money. Managing the cost of equipment is especially important when completing projects. The solution to this puzzle is simple, and more construction professionals are taking advantage of it than ever. Renting equipment instead of buying it is on the rise, and it is saving contractors thousands of dollars.
An American Rental Association (ARA) survey concluded that equipment rentals in the construction industry are at an all-time high and will continue to rise. The most common items rented include lifts, scaffolding, backhoes, dump trucks, and mini excavators. Here is a look at this growing trend and the ways it can help you save money.
- Renting Equipment Is Cheaper Than Buying – Renting equipment has the obvious advantage of saving money over purchasing it. Rental fees for the same equipment are only a few hundred dollars per day, or a prorated monthly fee. If you only need certain equipment for a specific project, you could save a significant amount of money.
- Renting reduces liability – Liability is lowered when equipment is rented. Purchasing equipment costs tens of thousands of dollars and malfunctions, theft, and repair costs can damage a construction company’s bottom line.
- Maximizing profit by optimizing use – Construction firms often use specialized equipment for certain projects. Purchasing equipment that will only be used once is not recommended. This is particularly true for more expensive equipment. You can save significant funds by optimizing budget allocations for each project, so you can reinvest them in other parts of your business.
- Reducing downtime and maintenance – Telematics devices attached to equipment provide information on factors such as location, performance, fuel consumption, and so forth. It can be extremely costly to maintain heavy machinery. Equipment owners not only have to pay money to keep their machines running, but their projects also stall while maintenance is being performed. Renting equipment eliminates this issue entirely. The rental company maintains the equipment, while the renter is able to use it whenever they need it.
- No storage or transportation fees – There are certain types of work that contractors can’t perform year-round in certain areas. Additionally, many frequently accept projects outside their local community and, for some, across the country. When this occurs, renting equipment may be more cost-effective.