Every company needs to carefully balance the operational expenses and profit margins to remain competitive and viable. In many aspects of operating a business, it helps to consider alternatives and options such as equipment and machine rental versus buying and maintaining such items.
Companies involved in industrial work require vital pieces of equipment such as trucks, excavators, loaders, generators, and lifts. In determining the maximum benefit and efficiency of these machines, it is crucial to analyse the cost and advantages of buying versus renting. The following factors need to be examined:
- The estimated value of a new machine
- The estimated cost of renting a piece of equipment over some time
- Fuel expenses
- The frequency of equipment use
- The expected life span of a new machine
- Approximate cost of service and maintenance
- Labour expenses
- Required skills and licence to operate the machine
- Capital and financing options
By analysing these factors, a company can come up with a data-driven and robust case for whether or not it is more cost-effective to rent than buy a new piece of equipment. In general, how often the machine will be used during its lifetime is a deciding factor for purchasing. Although the options for plant hire Preston companies provide include a diverse selection of machinery for short-term leasing, owning a few essential machines could prove to be a good investment in the long run. Apart from saving money and achieving a better profit margin, there are many other benefits to renting.
Forego compliance requirements
Owning heavy machinery comes with additional requirements regarding compliance with regulations. There are emission standards that need to be met, and it would be costly, not to mention detrimental to a company’s reputation if their equipment does not meet these standards. If you rent equipment, you do not need to worry about these regulations since this is the responsibility of the rental company.
Eliminate losses associated with waiting
When equipment used on a job site stalls or needs repair, the lost time will result in unmet deadlines and additional cost for the contractor. Renting reduces the likelihood of this from happening because the equipment leased will be delivered ready for use. Rental companies are required to inspect and make sure that machines are in good working condition before delivery.
Chase after new opportunities
If the company wants to diversify and bid on new projects, renting equipment provides a competitive edge. Venturing into a new field often requires that the contractor can also ensure the necessary equipment is on-hand and ready to use when the project commences. Renting allows you to gain access to speciality pieces of machinery that would otherwise be impossible to buy within a short period.
Have access to the latest and best makes and models
Renting equipment gives the company access to a wide selection of machines made by some of the best manufacturers in the world. You can choose from the latest models which have some of the most advanced features available. Using a superior piece of machinery can enhance the quality of work and even speed up completion. In conclusion, renting equipment does not only help with reducing overhead expenses, but it also has numerous other benefits worth taking into account.