Running a business is all about weighing your costs and benefits. For every decision, you must consider whether the cost is worth the benefit, or if there’s a better way. This is especially true with large and industrial equipment. Companies that use this type of equipment every day have good reason to invest in buying their own equipment, as well as investing in the infrastructure and services to store and maintain the equipment.
However, for businesses that only occasionally need large or industrial equipment, it may be more practical to rent instead. Equipment rental has some undeniable benefits for any business or individual project that needs equipment but does not have a constant all-year need for the equipment or a desire to keep such large equipment maintained. This article will help you weigh the pros and cons of industrial equipment rental for your project or company.
Pros of Industrial Equipment Rental
There are some serious benefits to equipment rental, ranging from convenience to circumstantially lower costs. These pros may well outweigh any potential cons for your project, and they are each worth considering.
Equipment is Ready and Fuelled on Start-Day
When renting equipment, the rental company is responsible for its maintenance and for getting the equipment ready for your project. You know your leasing agency maintained, fuelled, and readied the equipment for use when you’re ready to get started.
Lower Cost for Short-Term Projects
If you only need industrial equipment for a short period, then renting can create significant cost savings for your business. Buying large equipment is much like investing in a new company vehicle, or even a property, in terms of price. But only a tiny fraction of the cost to get the job done involves renting that equipment for a few days or weeks.
No Storage Space Needed Between Jobs
Storing large equipment costs much more than most businesses realize until they look into storage spaces. The amount of garage space needed to house earth-moving equipment, for example, is truly impressive. Rental companies have already invested in garages and storage areas for this large equipment so you don’t have to worry about between-job storage costs.
Eliminate Cost of Maintenance or Upkeep
It’s also worth noting that large and industrial equipment does not sit idle safely. It needs to either be constantly used and maintained or drained and disassembled for long-term storage. You completely eliminate hassle and cost when you rent equipment from a service that both keeps the gear in constant use and takes responsibility for steady maintenance.
Cons of Industrial Equipment Rental
The cons of equipment rental are mostly those of preference and long-term planning. Equipment rental, like any service, is optimized to provide the best experience to businesses and projects that need it. However, if your business is better suited to owning equipment, you may see the following factors as downsides.
Cost Grows with Rental Time
The longer you need to use rented equipment, naturally, the higher your final cost will go. If you need industrial equipment for so long that the rental cost rivals the purchase cost, you may be better off buying and then reselling the equipment instead of renting.
Must Return Equipment On Time
It is also important that rental equipment comes back on-time so the next scheduled renter can make use of it. This means that your projects will need to either finish on-time or you will need to account for some extra time in the rental contract to make sure you don’t keep your equipment beyond the period of the rental agreement.
Damage to Equipment Adds Expense
You may need to treat rental equipment more gingerly than you would your own equipment. Owned equipment can stand a few extra dings and scratches until it’s time to buff up and resell. But rented equipment needs to be in top condition every time it is rented, so treat rental equipment with care. Notable damages will usually add cost to your contract.
Will Need to Rent Again for Next Project
Lastly, you open a new rental contract and retrieve your equipment (or arrange for delivery) for each project where industrial equipment is needed. If you need to rent equipment frequently, it’s worth considering the additional costs of ownership over time. But if you only need equipment on a rare or one-time occasion, this is no issue.
Is equipment rental the right choice for your business or project? Only your cost-benefit analysis can tell you. For more information about equipment rental or to start planning your rental contract, contact us today! We’ll be happy to hear from you and help you create the best rental plan possible for your needs.