For as many advantages as the ownership of construction equipment yields, it comes with its own fair share of significant flaws. For one thing, the upfront costs alone can easily diminish any budget allocated towards it. It also comes with other elements that will require no more than a small fortune in additional expenditure for maintenance and storage as well as transportation. However, you’ll be pleasantly surprised that the industry has become much more accessible thanks in no small part to equipment rental services like plant hire Chesterfield. Here are just a few merits of equipment rental and how effective a business model it can be compared to ownership.
Renting is reasonably cheaper and far more cost-effective
The construction business is driven primarily by its project-based approach. More often than not, the consistency and workload in this industry can be more or less unpredictable. In order to minimise the risks of loss in the investment of resources in assets, it becomes better to rent rather than to buy. For starters, you’ll have the chance to get acquainted with the equipment and test it thoroughly. The allocation of money towards an upfront payment is also avoided this way, and you’ll only have to pay for the duration of its use and not have to worry about storage or transportation costs.
Depreciation of value is a nonexistent issue
Aside from having to finance irrecoverable expenses for maintenance and storage during downtime, you’ll avoid having to worry about the depreciation of the construction equipment’s value. Nothing is free from depreciation, and this becomes especially important when considering the usual high costs of earthmovers and various other construction equipment. Rentals remedy this issue since you won’t be shouldering the insurmountable task of trying to recover as close to the original purchase cost of the aforementioned equipment when selling.
Avoid the cost of transportation logistics and potential repair fees
Ownership of construction machinery usually entails shouldering any transportation and logistics fees as well as the costs of potential repairs that may be needed. Both can be substantial and easily put a sizeable dent in the bank account of a company. By going for a rental approach, your business model is free from these liabilities and allows the equipment not just to be kept on the respective project site but the repair costs will be significantly minimised when the situation does call for it.
While there are certainly situations where the ownership of construction equipment becomes a logical approach, it’s oftentimes limited to larger enterprises that can afford it. Renting, on the other hand, is much more feasible, and when you consider the market fluctuations of the construction industry then it becomes a far more cost-effective road to take.