As 2020 passes us by, it’s clear that the equipment industry was no exception to shakeups in the business world, and 2021 will still hold many of the same challenges. Because of this, you may be wondering if either buying or renting equipment will be in your best interest for the new year. While it is true that the rental industry as a whole took a hit in 2020, the American Rental Association projects moderate growth in 2021, with 2022 and 2023 looking even more promising. However, you might still be wondering, “What will be best for MY business this year?”
What’s Best For You?
When your company is deciding whether to rent or buy, the decision comes down to a basic cost-benefit analysis that answers questions like:
How often will the equipment be used after this job?
What will the operational expense be?
How easy will it be to transport the equipment to and from the job site?
Will this affect my financials for the rest of the year?
These are all valid concerns and they should definitely be considered before deciding your next course of action. However, deciding to rent your specialized equipment can help put many of these questions to rest.
The Benefits of Renting
As with most specialized equipment, specialized knowledge is needed in order to maintain and repair it. As Utility Contractor points out, going to rental houses gives you the benefit of saving on many of these operational costs that would come with purchasing your own machine, whether that comes in the form of parts, labor costs for service, or transportation of the equipment you are renting. If you are depending on your own team to diagnose issues and repair equipment in the field, this could cost valuable hours on a job when your labor is needed elsewhere on the site. Rental service providers have the ability to quickly and efficiently show up for on-site service and solve the issue that they have probably seen dozens of times before, saving you headaches and labor costs.
On an even more basic level than service, it should also be considered how often your specialized equipment will see action in the field outside of the job you are purchasing it for. It may be enticing to own a specialized machine for future projects, but that may end up costing you more in the long run when considering depreciation, utilization, and a number of other factors. However, if you are determined to purchase this machine in the long run, renting is a great option for testing the waters and seeing exactly how the equipment operates and if it meets your needs for other projects.
Overall, renting your equipment offers many benefits that purchasing may not, especially while construction companies are still trying to saving money wherever they can. As the industry opens back up in 2021 and beyond, consider the cost-benefit factor in making your next rental or purchase, and your pocketbook will thank you for it in the future.