4 Advantages of Renting Industrial Equipment Instead of Buying

Why rent industrial equipment? The cost of purchasing new or used machinery is high, and with the price of capital goods constantly increasing, it can be difficult to justify a purchase. So instead of buying, consider renting your heavy construction equipment. By leasing rather than buying:

1- Gain An Advantage with the Latest Machinery

You can always have access to the latest technology. When you lease heavy industry equipment, you’re guaranteed to receive state-of-the-art machinery. However, when you own an asset, it becomes more difficult to upgrade as time goes on because the old version must first be sold off before a new version can be purchased. Because these assets are typically costly and only depreciate over time, keeping up with technology adds unnecessary costs that weigh down your business’ margins.

2- Grow Your Business by Upgrading Your Fleet Faster

So you can upgrade your fleet more frequently. When your equipment needs to be updated, you’ll have the option to do so. If you own all of these machines, it may not make sense to replace them until they wear out. But by leasing heavy machinery, you have the option to switch over when a new version comes out and can keep your fleet always up-to-date as technology evolves. You won’t need separate equipment for different projects, either. Because each project requires specific types of machinery depending on its demands, you may find yourself with multiple other machines that are only used in specific locations or during certain construction phases.

3- Save Money on Depreciation and Increase Profits

Instead of holding onto several older pieces of equipment that are rarely used because they’re obsolete compared to newer models, you can have a set of machines suitable for any situation. And if your company is growing and requires more equipment than your current fleet can provide, it’s much easier to expand when the machinery is just an additional monthly payment. In addition, you won’t be saddled with high depreciation costs.

When you purchase expensive machinery like cranes, excavators, and other construction equipment, they will slowly lose their value over time as they are used. Because less money is being paid up-front when renting rather than buying heavy industry assets, there won’t be such deep cost cuts necessary to offset these expenses over time. This means that your business’ margins aren’t affected as much by the frequent use of large capital goods; instead of compromising profitability to complete a project, you can keep your bottom line healthy and strong.

4- Expand Your Business Faster

You can expand more quickly. Companies that want to grow fast are likely better off renting their industrial assets for the same reasons listed above. They can afford big purchases before they have a proven need for that piece of equipment, but by leasing when they’re still small, they aren’t saddled with an asset that is no longer necessary when it comes time to scale up. Instead of sitting on machinery that isn’t making money because it’s not being used regularly, a company that grows slowly by upgrading as its needs expand will see revenue growth along with asset expansion.

When dealing with short-term projects, owning your own heavy industry equipment won’t make sense. Depending on how long you expect a project to last, it may be difficult or impossible to justify the cost of taking on ownership. Because renting is much easier and more flexible than buying, companies that periodically take on short-term projects can see better revenue growth from leasing pieces of machinery instead of looking for ways to sell them off when they’re no longer useful.

As your business expands and becomes more efficient, several different aspects of operations will require additional capital goods upgrades as well. This adds up over time; if you own your assets rather than lease them, you must pay for maintenance costs and find ways to make money with these machines during downtime when they aren’t in use. By knowing how the equipment will grow and expand with your enterprise, you can make better decisions about what to buy and how to expand over time.