Maybe you’ve got some big jobs coming up soon and you decide you need to just buy the crane you need for one or more of these jobs. Would that be a good investment? How do you know? Buying vs renting is a tricky question in today’s world. There are pros and cons to buying and renting heavy equipment.
When should you rent your heavy machinery? The general rule is that if you are going to use it less than 65% of the time and don’t have somewhere to store it you should rent it. Renting equipment can come with many advantages. Most jobs have specific needs. For example, you may need a crane for your current project that has a 50-foot reach, but for most of your other jobs, you only need a crane that has a 30-foot reach. Renting equipment allows you to have specific equipment for specific jobs instead of purchasing equipment that could have gotten the job done without using as much space and fuel. If you rent your equipment, not only can you be specific on the size and type of equipment you need, but most of the time you can rent equipment with the latest technology.
Technology is advancing every day and it can be costly to try to keep up with the newest trends in your own equipment, but with renting equipment, you get to use the best technology for less than the cost of owning it. Possibly the biggest advantage to renting equipment is that service and repairs fall onto the rental companies shoulders and not yours. Not only do you need to have your equipment regularly serviced, but at any time something could break or get damaged at a job site. Are you prepared to take on those costs?
Say you are going to use the crane for more than 65% of your jobs and you do have somewhere to store it? You may want to go ahead and make the purchase. Not only is buying equipment cheaper in the long run, but there are multiple advantages to buying.
Owning equipment looks great to potential customers. Not only can they see that you have the capacity for their job, but they sometimes see a financially stable and more reliable company if you can afford to have your own equipment. Not only does owning equipment change the way customers see your company, but it gives you greater access to how you see your company. Owning equipment allows you to track how you do each job with the same equipment, allowing you to find what works best and how you can improve from job to job to save time and money.
Owning is not only cheaper in the long run, but you get a return on investment when it comes time to sell your used equipment. Another plus is that by owning equipment, you may get a tax advantage. Talk to your tax advisor to see if this could be the case for you.
It can be hard when deciding between renting and buying equipment for your company, but it all comes down to your specific needs. Be sure to check out our forklift rental services.
Mechanical Contractors and Industrial Contracting for over 25 years. We offer our industrial clients efficient and cost-effective fabrication, modification, and repair of industrial equipment. From preventive plant maintenance, designing, installing and aligning machines, our exceptional skill and craftsmanship set us apart from the competition. Our range of capabilities in mechanical contracting, design and implementation help us provide complete services for our industrial and commercial clients.
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