There are numerous types of construction equipment to perform many different tasks. Wheel loaders move tons of dirt while excavators dig a ton.
Depending on what type of work your company does, you may need many pieces of equipment to get the work done. Owning a large fleet of machines is nice but may not be cost effective.
To save on maintenance costs, many contractors choose to rent equipment. However, renting isn’t always the most beneficial option either. What is the best way to go for you?
One of the most important factors to consider when deciding whether to rent or buy construction equipment outright is how often you expect to use it. If a machine is only going to be used occasionally, you probably should consider renting that particular piece of equipment.
Generally, a construction company will own a staple piece of equipment like a backhoe, mini excavator, or skid steer, however if a company takes on a project that requires something they rarely use like a telehandler or crane, renting makes more sense.
When deciding whether to rent or purchase construction equipment, keep in mind the initial purchase price is not the only cost of the machine. Maintenance, storage, and insurance costs will add up.
The nice part of ownership is the machine is there when you need it. If you suddenly need a machine and scramble to rent one, but the machine isn't available, you could end up getting behind on the project.
One other option is to rent out your machines that sit idle. This way you can make some extra money on the side.
There's no perfect formula to determine whether or not owning or renting a construction machine is right for you and your company. Probably the best way is to evaluate what situations you find yourself in when moving from project to project.
As always, if you need any parts for machines you own, be sure to give ConEquip Parts a call.
