For newly started construction business, buying equipment can be a big task due to the enormous financial capital required. Leasing offers an excellent opportunity to add construction equipment to your business while reducing the risks associated with purchasing. Renting specialty equipment such as bulldozers, excavators, and backhoes can increase the efficiency of your construction portfolio while reducing the cost of doing business. Here are some useful facts for new contractors when opting for equipment hire.
Improve Bottom Line -- Heavy equipment are used based on the availability of a construction project. When there is no project, the machine can gather dust in storage leading to massive depreciation. Renting is beneficial because, in the short-term, a contractor does not incur liabilities on the balance sheet. The reason is that rental charges are deducted immediately from business expenses while purchases of heavy machinery have to be depreciated in the entire service life of the equipment. In this regard, renting improves the company's bottom line.
Upgrades -- The heavy equipment industry is increasingly witnessing innovations that make the machines more efficient and productive. Buying a heavy machine leaves less room for upgrading when you need to be competitive in the market. Renting gives you the opportunity to acquire state-of-the-art equipment that also comply with regulations, for instance, the stringent emission standards.
Slash Transport and Storage Costs -- Assuming that you have just landed a construction project in the New South Wales whereas you are based in the Northern Territory, then transporting equipment to the work site might take away a significant chunk of your overall profits. It would make much more economic sense to hire construction equipment in NSW near the job site. Also, when you rent equipment, you do not have to pay for storage facilities since the machinery will be delivered at the work site.
Timelines -- Before you hire heavy equipment, you should draw up a plan on how long and when you need to use the machines. Notably, the frequency of using the leased equipment is a crucial consideration. Therefore, ensure that you hire machinery at the right time to avoid idling at the work site. Construction timelines should be synchronised with rental schedules. A rule of thumb is to complete tasks that do not need specialty equipment before renting. Moreover, never waste money by renting more machinery than you need. For instance, you can save money by renting a few machines with accessories that can perform different tasks.Share