Experienced contractors know that no two jobs are equal. For this reason, having the flexibility to source the right equipment for a particular job whenever you need it is a tremendous asset. Tough construction jobs can sometimes bring up unexpected hurdles, even for the most prepared contractor.
Emergencies such as unforeseen work and re-work, equipment failures or canceled equipment operating contracts can delay project completion and cause project costs to rise. This type of flexibility is becoming increasingly more desirable.
Partnering with the right supplier ensures you get the flexibility you need to complete the job with the most efficient equipment available. Whether you're taking on a new type of project or have unplanned or emergency equipment needs that arise during production, rental suppliers like The Cat Rental Store can help you get the job done without delay.
For contractors, one of the most practical equipment rental benefits is knowing that you always have solutions available from a local supplier. Contracting businesses naturally evolve. While many contractors start out offering a select few services, many eventually grow to provide additional works.
Many companies make the jump from residential to commercial and eventually into industrial contracts. This type of growth is excellent for companies, subcontractors and suppliers alike. With business expansion comes the added need for newer, bigger equipment with more offerings or different applications. Renting equipment to fill in these new needs allows you to quickly and efficiently expand without the responsibility of managing more equipment yourself.
You can conveniently ramp up production without spending the time securing financing to cover capital expenditures. The rental market for construction equipment has grown significantly in recent years for this exact reason — contractors want access to a full line of equipment and applications to fulfill immediate needs on an ongoing or short-term basis.
But they don't want to keep a large fleet themselves. Having the option to rent equipment gives you many more options without having to expend your own fleet. Many contractors take a hybrid approach where they own their core pieces of equipment and supplement with rental equipment on an as-needed basis to boost their production capacities.
Having a go-to rental provider allows you to take on more projects and not leave money on the table. With earthmoving equipment, for example, models with too small load capacities force operators to move materials in more trips than necessary compared to if they have access to equipment with higher load capacity. Different equipment types have a variety of models, each with their own unique features designed for specific applications.
However, not all equipment dealers are made equal. Some equipment rental outlets may not have the equipment you need when you need it, forcing you to settle with something too big, too small or wrong for the job.
Cat Rental Stores have a massive distribution network of reliable, dependable equipment. Whatever equipment you need for the job, you can find through your local Cat Rental Store. Our equipment representatives also have the expertise to help you choose the right equipment for the job so you can complete your contracts more efficiently.
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. For large pieces of equipment, you must make sure your facility can accommodate long-term storage to minimize damage to your tools — you can't just keep them outside where they could become damaged when exposed to inclement weather.
Storage costs can quickly add up when running a construction business. With increased warehouse space comes higher costs. In addition to the cost to rent or own the space, there's also the cost of insurance, security and monitoring that accompanies storing assets as valuable as construction equipment. Renting equipment provides a huge benefit in keeping overhead costs low, including reducing the need for storage space.
Knowing upfront what your equipment costs are can make it a lot easier to estimate a construction budget , resulting in a more profitable project.
With equipment rentals, your project costs are clear — the equipment rental fee your provider quoted you plus fuel costs. Depending on the dealer, you might also have insurance and deposits as additional expenses, but these can be factored into your total fixed rental cost on the project. With equipment rentals, there are no surprise expenses.
Reduced property tax. Did you know that property taxes are reduced on rented equipment? Renting your next set of equipment can help reduce expenses. Increased borrowing capacity. Renting equipment instead of purchasing can be a convenient and easy process.
Conservation of capital. Renting equipment can help you conserve capital by avoiding the need to spend additional money on equipment that may not be used again. Renting equipment can be beneficial for your organization.
For your next project, keep these 12 reasons to rent in mind to save time and money. For more information, visit www. Skip to content Menu. Buy Equipment. Project Control 1. But this is another worry you can simply hand off to the rental company. If your equipment is on the East Coast, but your project is on the West Coast, your costs to move your machines could make a sizable dent in your profitability.
It may be smarter to rent the construction equipment you need from a rental company local to your project site and wave goodbye to transport costs. Some projects require specialized equipment if they are to be done correctly and efficiently.
Buying the equipment may not be economically viable. On the other hand, rentals can let you expand your project horizons while staying profitable. If you buy instead of renting, you tie up capital that is then no longer available for other projects. That can cost you opportunities you would have liked to pursue. You can keep your options open by renting instead of buying.
Rental costs are often immediately deductible as business expenses. Purchases of construction equipment on the other hand often need to be depreciated over the lifetime of the equipment.
This is another one to make bean-counters happy! Your finance department will appreciate the fact that rental expenses are not considered to be a balance sheet liability.
Renting construction equipment also lets you try before you buy it. You avoid the risk of large investments if the equipment turns out to be unsuitable. With all of the advantages above, you may wonder if buying is ever the right decision.
As a rule of thumb, the cross-over zone between rental and purchase is the usage of the equipment 60 to 70 percent of the time. You can fire up your PC spreadsheet or, better still, use purpose-built construction management software to calculate and figure out whether buying or renting construction equipment is best for you. Different rent-or-buy decisions work for different companies.
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