Whether your company is involved in construction, agriculture, or any other type of industrial work, there may be times when you require heavy industrial equipment to move land, excavate large units, or for a variety of other industry-specific tasks. However, if you don’t need to utilize these machines 24/7, and often have times when the machines don’t run, purchasing such equipment may not offer the return on investment that you expect.
So let’s take a closer look at why it might be better for your company to rent, rather than purchase heavy equipment, by asking these three simple questions.
How Often Do You Typically Need Heavy Equipment?
While some companies – like construction or mining companies – tend to operate heavy equipment almost constantly, there are others that simply need to utilize such tools once or twice a month. For these businesses, purchasing may not be entirely worthwhile, as they would not be able to enjoy the full value– despite paying the full cost of maintenance, insurance and other associated expenses.
Fortunately, with heavy equipment rental, you don’t have to pay the unnecessary costs, and can simply pay for the time that you choose to utilize it. And while the per-hour cost may be higher when renting, it may still be less than the cost of actually maintaining the machines.
On the contrary, however, if you do need to utilize such equipment daily or even on a biweekly basis, purchasing the tools you need may be a more prudent choice, as the costs of purchase and maintenance may ultimately be less expensive than the constant delivery costs or extended rentals.
For How Long Will You Need to Utilize the Equipment?
The next important aspect to consider when choosing whether to buy or rent is how long you will need the equipment for. This is because there are many unexpected costs to owning heavy machinery, such as maintenance and insurance, which can lead to unnecessary monthly expenses. As such, if you need specialized tools for a particular two month project, renting that equipment will most likely be a more affordable choice. However, if you know that you will continue to utilize the equipment regularly over the next few years, then purchasing may be a better option.
How Time-Sensitive are your Heavy Equipment Needs?
Finally, regardless of what industry you are in, you need to consider how time-sensitive your heavy equipment needs are. As a farm owner, for example, you may not always have the time to wait for delivery when heavy rains or storms arise, and may certainly need a large machine of your own to cater to sudden problems. Alternatively, if your projects are all carefully planned out, you can plan ahead and ensure you have the necessary tools and equipment for each job.
As you can see, deciding on whether to purchase or rent industrial equipment is dependent on your unique needs, and how your business needs to utilize such machinery. Fortunately though, by simply asking yourself these three questions, you will be more capable of making the right choice and saving yourself from unnecessary costs.