Since the construction industry started to rebound in 2011, contractors have started to rebuild their businesses back to larger operations to handle the increasing work load. This growth means contractors are using more excavators, and other concrete demolition tools.
With a bright outlook forecasted for the next four years, this trend looks likely to continue.
The energy industry alone is expected to account for $30 billion dollars a year until 2035 in required infrastructure projects.
After the long, grueling winter, jobs are also back on the rise as unemployment levels in the construction industry saw improvement in both March and April.
To accompany this optimistic outlook, contractors are faced with decisions to make on their capital investments, namely whether they should rent equipment or buy it outright.
While there are benefits to both choices, unless your company is flush with cash, renting could be your best option.
This post will outline four advantages of renting, and the flexibility that comes with it.
Prevent Idle Equipment
The first reason that renting is a better decision is that you can select the tool you need without worrying about whether or not it will be needed in future projects.
Unless you work consistently with the same material or limit your company on the contracts you bid on, you may end up buying a piece of equipment that is perfect for one job but then sits idly for onths depreciating in value.
By renting you can ensure that you have precisely the tool needed to handle the job and not worry about trying to operate with a less than ideal tool because you already own it.
When you rent your equipment you can be confident that you are getting a reliable machine that can be counted on to finish the job.
When you have completed your job you can return the tool and not concern yourself with the long-term maintenance of the equipment at the highest standards.
The rental company assumes the responsibility of the tool again and you do not have an asset on your balance sheet to worry about.
The most successful contractors are the ones that are able to configure themselves in the most efficient way to handle each individual job.
While the outlook for the industry as a whole is optimistic, if there is a month where you unforeseeably miss out on a few contract bids and you have significantly less work you are not stuck with an unnecessary expense.
You also have the flexibility to try out new equipment.
New tools are developed every year and you can experiment with the latest technology available to see whether it is worth the money without a long-term commitment.
Renting on a case-by-case basis keeps your operation lean and flexible.
Renting Does Not Limit Your Ability to Buy
If you find a reliable rental company that you trust and find yourself repeatedly renting the same equipment, several companies will provide you with a lease purchase program where money you spent on a rental can be applied to purchasing the equipment.
This allows you to use the equipment firsthand and see how it performs, instead of just taking the supplier’s word that their product is as great as they say it is.
Renting gives you the option of returning the tool after one job without limiting your ability to make a long-term investment.
These are four reasons why renting can provide your operation a significant advantage over purchasing your own equipment.
Several companies have already seen the benefits and more people every day are making the decision to invest in rental equipment.
Construction equipment rental revenue in the U.S. is forecasted to see a Compound Annual Growth Rate (CAGR) of 8.6% in the next four years.
Join the movement and see how these and other advantages of renting your equipment can improve your bottom line.