5 Benefits of Renting Construction Equipment

The market for rental construction equipment is steadily growing as more businesses find that it makes more sense to rent than buy. The increased cost of purchasing new equipment is a contributing factor. Many companies rent so they can save money in an unpredictable market. Renting makes it easier for organizations to trim their budget and remain financially sound. Businesses that rent equipment can also:

  1. Eliminate Purchasing Expenses

While owning expensive, state-of-the-art equipment is impressive, it represents a considerable upfront expense for companies and can be especially tough on start-ups. Owning equipment also means that employees must work with what they have. When you lease or rent equipment, you avoid the large cash outlay required to buy new equipment. Your business can also gain easy access to any machine you need by contacting an equipment rental provider. An Internet search for “equipment rental near me” will provide a choice of local suppliers.

  1. Reduce Maintenance and Repair Costs

Equipment upkeep is part of the cost of owning construction equipment, and it can get expensive. Rental equipment still needs to be maintained to keep it safe and in good operating condition, but overall costs are reduced. Since you don’t need to maintain equipment for its entire lifespan, there is no need to create a long-term maintenance plan. According to The Balance Small Business, renting equipment can eliminate some or all maintenance expenses if contracts cover maintenance, spare parts, and repairs. It is essential to check the agreement before signing to understand exactly what it includes.

  1. Avoid Depreciation

When your company buys new equipment, it begins to depreciate immediately. In addition to the original purchase price, you incur costs associated with upkeep. As you use your equipment, it loses value, depreciating more every year, and recovering costs can be nearly impossible. Renting construction equipment is a way to avoid depreciation costs. Your only expenses will be rental fees, which are tax-deductible.

  1. Resolve Storage Problems

Equipment storage can be a problem for construction companies, especially start-ups with minimal resources. But, it is critical to have adequate safe storage to protect machinery from the elements when you own equipment. If you need to rent warehouse space, it can be expensive. Construction World experts say that businesses can often avoid storage issues by negotiating with suppliers regarding the length of time rentals are needed. Renting equipment on an as-needed basis resolves logistics and storage problems.

  1. Reduce New Opportunity Costs

When your company is growing, it is essential to take advantage of every new opportunity, but winning some bids may require specialized equipment to ensure the job is completed correctly and on time. Buying the needed machinery may be too expensive, especially for a new business. Renting the required equipment lets you continue to expand your company’s reach while maintaining profitability. You also avoid tying up the crucial capital required for other projects. Freeing up capital makes it possible to continue pursuing opportunities and keep your options open.

Construction companies use expensive machinery that fits each project’s needs. Buying the pricey equipment is not always practical, so many businesses rent instead. Renting equipment allows businesses to reduce storage, maintenance, and depreciation expenses. It also allows companies to free up capital.