There are many reasons you should consider renting construction equipment instead of buying it, but the main two are undoubtedly cost and time. Here at Equipment Source, Inc. (ESI) we have top-rated earth movers, heaters, generators, pumps, and much more available for rent at our stores in Alaska and North Dakota. We’ve been working in the construction sector for 20 years, which means we have a lot of experience helping customers get jobs done on budget and on time.
Equipment is expensive, which means a decision to rent can allow you to save money and reallocate resources to other parts of your project. It’s also a great choice if you need a machine right away, because you’ll be able to arrange delivery on a date and time that suits you instead of ordering something from the manufacturer. This could deliver the competitive edge you need. Keep reading, because we’ll delve into the money and time-saving attributes of renting in more depth below.
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Renting construction equipment can save money
Most decisions on most worksites are driven by the bottom line. What is the cheapest way to safely complete a job? What decisions can you make now to save money in the long run? What is going to help you get ahead of your competitors? Ultimately, cashflow keeps the construction industry alive.
There are a number of financial considerations you should take into account when weighing up the pros and cons of buying or renting the equipment you need to complete your construction project – for example, the type of job you’re completing, the operating budget, and the anticipated timeframe. Depending on the circumstances, choosing to rent may help your company:
- Avoid the big expense purchasing new equipment.
- Avoid wasting money on equipment you may only need for a short time or specialty job.
- Avoid ongoing costs of maintenance, servicing, transportation and storage.
- Avoid losing money on asset depreciation over time.
These factors can make a significant difference to your profitability. Of course, any decision regarding the acquisition of new equipment should come with a thorough cost-benefit analysis. Generally speaking, we recommend that you purchase new equipment if you plan to use it at least 60% of the time, and rent if you plan to use it 40% of the time or less. It also depends on your business plan, the types of jobs you’re planning to take in future, and whether the need is ongoing.
Forgoing a big upfront investment means you can seize opportunities even if your money is tied-up elsewhere, such as other projects. On the other end of the spectrum, avoiding a big expense means you can maintain strong borrowing power, allowing you the flexibility to make strategic decisions. This means your leadership team can be proactive, rather than reactive, in planning next steps.
Increase short-term profitability with rental equipment
Renting construction equipment also allows your business to scale-up incredibly quickly to meet demand. There are a lot of advantages to this. For one thing, it means you can seize opportunities and take on projects you may not have been able to confidently deliver otherwise. For another, renting will allow your business to quickly recover from unplanned incidents – such as mechanical failures – without losing productivity. This is particularly important when you’re working in tough Arctic environments, such as Alaska, where weather windows can be incredibly valuable.
The other big advantage to your short-term profitability is the fact that you don’t have to worry about spending on things like compliance or maintenance downtimes, because all equipment will be properly serviced and ready to start work. This can significantly reduce your project costs.
Renting construction equipment can save time
We’ve already touched on this, but the other key reason to rent construction equipment is to save time. There are a couple of ways rental equipment can keep your project on track:
- Get equipment straight away instead of putting in an order and waiting for delivery.
- Fill gaps when your regular equipment is undergoing maintenance or repairs.
- Avoiding costly delays and downtime by maintaining productivity.
It’s never good to have your crew sitting around, waiting for equipment to arrive so they can continue working. In that sense, the best thing about renting equipment is that it will be delivered right on time, allowing your workers to get on with the job, which makes coordination simple.
The other thing, of course, is that rental equipment is likely to be state-of-the-art. This is good for two reasons. First, it can increase your efficiency, especially if you need a specific piece of equipment to complete a specific task. Second, it allows you to try before you go ahead and buy new equipment of your own. You can put it to the test and make sure it will meet your needs while you’re at work, which means you don’t need to step away from the job to conduct research. Again, it’s all about keeping the wheels in motion, so you can avoid costly delays by maintaining productivity.
Where to rent construction equipment
As you can see, there are many reasons you might choose to consider renting instead of buying equipment for your next construction project. The next question is where to start? Here at ESI, we got our start reconditioning heaters in North Slope, Alaska, in 2000. We heard our customers tell us the needed things that had never been done before – custom equipment with Arctic applications – so we set to work and started manufacturing specialty equipment that is build Arctic tough.
As our business grew, we became a Kubota and JCB dealer, and we added an extensive range of rental equipment. We continue to learn what works best for our customers, and our approach is based on the ideas and feedback our customers give us. We specialize in serving the construction, oil and mining industries, and we’re always looking for industry needs that have not yet been met.
Ready to get started? Talk to us about your construction equipment needs.