Why renting plant equipment is more cost-effective for construction businesses
For a construction business, purchasing plant equipment is one of the most expensive things to do. While it’s often possible to get equipment financing, it can still be costly and come with a certain amount of risk. The alternative is to rent the plant equipment needed and skip purchasing it outright. But is it more cost-effective to do so, and are there any downsides to it? Let’s find out.
Choose different equipment as needed
While you may need a digger one day, something else might be needed the following day. The smaller the construction business, the more different equipment is required, which makes it exceedingly difficult to afford.
If you need a crane for a specific job, but know you won’t need one long term, you could consider Kwik crane hire from Kwik Logistics. They provide the access and lift that’s needed to complete work faster. In Perth, they’re the go-to company to find a crane for commercial hire or other purposes.
Hiring what you need when it’s needed saves ordering and waiting for the delivery of new equipment. It’s easier to get something that is set up and already works reliably upon arrival too.
No storage or transportation expenses
When you have multiple construction sites, then it’s difficult to share existing equipment between two locations. Transporting equipment between sites is costly and time-consuming too. It can cause either downtime on-site or someone who has to work overtime to relocate the equipment.
When equipment is owned and not in use, it’s costing money, as you must also find a place to store it securely overnight. Equipment can get stolen after everyone’s gone home, so not having to store owned equipment is one less potential headache.
Standards compliance is easier with newer equipment
To conform to the latest safety and equipment standards, owning requires that equipment models are modified or upgraded for newer ones to meet the right standards.
When you hire instead, that’s not your problem. The hire company upgrades the equipment as needed to ensure all their customers don’t have compliance issues due to old cranes, trucks, or other items.
Minimal repairs & maintenance
Newer equipment requires fewer repairs and the maintenance requirements are less too. Hire equipment tends to be newer and have fewer problems. It is often better maintained because the hiring company doesn’t want its customers to have any unnecessary difficulties. Therefore, they service and maintain the equipment well.
Any maintenance is less because when hiring, you’re concerned about the near-term condition of the equipment. The hire company looks more at what’s required to keep the equipment working well for the full lifecycle of it.
Lower initial cost
It’s far less expensive to hire the equipment needed instead of purchasing it or paying financing on it. There’s also the option to hire more equipment because the initial outlay is lower. This provides greater options and flexibility than when you need to pick and choose between machinery which is all necessary.
Hiring plant equipment is cost-effective for many construction companies. When you look carefully at the benefits of doing so, often the choice is clear. There is also a hybrid situation where companies see the value in owning the most frequently used equipment while renting others.