Construction companies are saving a significant amount of both time and money by choosing to rent equipment ranging from excavators, forklifts, skid steers and even site cameras
According to reports from industry observers about 60 % of contractors managing constructions in 2023 took construction equipment such as skid steers, cranes, dozers and excavators for hire basically based on the fact that it offered more flexibility and lowered cost of projects compared to as owning such equipment.
The fact that the contractors were able to return the rentals whenever the equipment was not in use was a plus factor and contractors only paid for the equipment for the period that the machine was used. This meant that these contractors do not own equipment that are left idling which in turn meant that they save money and do not own ‘non-working’ assets (assets that are not generating revenue) and coupled with the fact that not owning such equipment also means less overhead. According to Jennifer Whitney a construction manager, buying and owning equipment sometimes have their plus points compared to renting, however according to Whitney, renting is not always the best solution based on the fact that contractors only use most of the equipment that they own 40 % or less of the time that they own it which means that the money invested into the machine is wasted 60 % of the time.
As simple as this may sound, she added, it is not always that basic as choosing between renting and buying has their own sets of pros and cons and choosing to buy or rent an excavator for example is dependent on the scenario and contractors must take into consideration in order to justify their decisions. Whitney also indicated that the majority of smaller construction companies rent equipment due to two reasons the first being the benefits of renting, the other being the cost, they would not be able to manage the projects and also purchase such equipment which has the potential to stifle their cash flow and cash flow as everyone knows is critical to projects.
Renting also allows contractors to organise their work more thoroughly and helps them budget projects more effectively. The fact that these companies do not have to purchase additional vehicles to transport heavy machines such as excavators is an enormous financial benefit and the reason behind this due to the fact that most rental companies provide drop-off and pick-up services for these machines.
The simple fact based on surveys is that renting or taking machines such as excavators for hire can be more cost-effective compared to outright purchasing and is the best option for projects with tighter or smaller budgets. Rentals provide contractors with the resources that they do not have at a fraction of the cost of the vehicle’s purchase price and also remove elements such as ownership costs, equipment storage, transporting, and maintenance throughout the time that they own a machine.
