Benefits of Renting Construction Equipment
Construction is a capital intensive occupation and the people and companies involved in the business are more often than not financially tied up due to the heavy expenses and long term returns. Equipment costs are one of the major expenses that decide on the financial success of the company and individual projects. Globally renting equipment has become the norm while the Indian market despite being tremendously huge is still stuck at a meagre 8-10% market penetration with companies still preferring to buy their fleets instead of renting or leasing them. Here is a rather compelling list of benefits of renting construction equipment that will prompt companies to add renting as a strong contender in their consideration set.
1. Storage: Given that the equipment will be rented, storage is not a problem for the company renting the construction equipment. The rating company is contractually bound to take care of the storage of their machines. Storage costs add to the financial burden of owning heavy equipment. Additionally large companies have projects across the country and are required to transport and store equipments at the changing project sites.Renting is a better option since it cuts down of the expense and hassle of storing these heavy machines.
2. Maintenance: The renting construction equipment company takes care of all the maintenance of the machines and the related expenses. Even if there is a break down at the site, the renting company is required to take care of the replacement costs.
3. Transport: Transporting machines is a logistical challenge given the high cost of transportation across states. Moving one’s whole fleet from one place to another is a huge expenses that eats up the profits from the projects. Renting the required equipment from local vendors cuts down on the huge expenses by a huge margin.
4. Access to latest technology: Renting gives access to the latest machines available in the market without actually having to buy them. Evolving technology helps shorten the time line of projects there by aiding profit margins. Renting gives one the option of using the latest and fastest machines at subsidised rates without having to actually having to incur the owning expenses.
5. Financial benefits: Rental costs can usually be completely deducted as company expense while the capital costs are usually amortised or depreciated over the life time of the equipment. The value of owned equipment starts depreciating the moment the machines are purchased while the variable is completely taken out of the equation when renting equipment.
6. Rent before you buy: Renting lets you use and try the machines for a rather long period of time without having to spend on buying the machine in turn giving you enough experience with the machine to decide on wether you actually want to spend big bucks on owning the equipment over a long period of time.
7. Supplementing core fleet: Renting lets you supplement your core fleet at much lower working expenses and lets you expand your fleet’s working capability and capacity to meet project deadlines and take up bigger projects at feasible prices.
Renting equipment has a host of benefits that make a rather competing case in its favour over owning the said machinery.