Four Benefits of Renting Construction Equipment

A typical construction company has three major expense heads – the cost of labor, the cost of materials, and the cost of construction equipment. Most companies have a core team of manpower on their rolls, and hire additionally on ad hoc basis for specific jobs. The raw materials are usually almost never stocked, and are purchased as per the requirements of ongoing projects. But when it comes to construction equipment, many companies find it difficult to decide whether they should buy new or used equipment or should they hire equipment as and when required.

Yes, it is possible to rent construction equipment like ground thaw machine and others instead of buying them. But many companies prefer to invest capital and storage space on owned machines instead of renting them. This might not always be an economically sound decision. Let us look at four reasons why.

1.      Renting equipment allows a company to avoid the high initial cost of procuring a machine. Why this makes a difference to the balance sheet is that construction equipment is usually quite costly. If you see that you are getting projects requiring a ground heater e3000 regularly, you can always buy it later.

2.       Apart from the high capital investment initially, you also commit yourself to all repair and maintenance costs when you buy a new machine. This means an outlay of some money every few months, even if the equipment is not in use.

3.       There are several equipments which are not required very frequently. If certain market conditions dictate that you are not getting too many projects of a certain kind, then owning a piece of equipment that is needed only for such projects might become a waste of your resources if you buy them.

4.       Finally, a decision to go for ground heater rental saves you the trouble and the cost of arranging for adequate storage space for your equipment.