Does Equipment Hire Make Sense for Established Construction Companies?
The option to hire equipment has gained momentum. While it's a go-to for DIY enthusiasts looking to save money and complete projects seamlessly, it also presents an intriguing choice for larger operations. From bathroom renovations to garden maintenance, equipment hire has become synonymous with convenience. But when it comes to established construction or landscaping firms, which generally have the budget to buy tools outright, the question arises: does equipment hire make sense?
Well, no more doubts. Today, let’s explore when it’s beneficial for construction companies to rent tools and when buying might be the better option.
So, let's get started!
How Wise is It for Big Companies to Rent Tools?
For large companies, the decision to rent or buy equipment hinges on several important factors—each with its own impact on finances, project timelines, and operational flexibility. While big companies often have the budget to buy the tools they need, renting may still make practical sense in certain situations.
Here’s a breakdown of the considerations that can make renting a wise choice, even for established businesses.
When Small Tools Are Involved: The Case of the Jackhammer
Take a commonly used tool like a jackhammer, a relatively affordable and high-demand piece of equipment for many construction companies. Large firms usually operate across multiple sites, which means that a jackhammer hire may be needed in several places simultaneously. If the tool is required frequently and at various locations, buying the jackhammer outright often makes more sense than renting it repeatedly.
Renting can become costly over time, especially for a tool with a relatively low upfront price. A one-time purchase may cover the cost of several rental periods and offer unlimited use without recurring rental fees. For companies with the budget to spare, owning such tools outright leads to long-term savings and avoids the logistical delays that rentals can sometimes incur.
For Large Equipment: The Case of Earthmoving Machines
On the other hand, when it comes to large-scale machinery like earthmovers or cranes, the decision becomes more complex. Earthmoving equipment is not only expensive to purchase but also incurs additional costs for maintenance, storage, and transportation. For large companies that need earthmoving equipment only for specific projects or at limited times, renting becomes an efficient solution. Here’s why:
1. Cost Management: Earthmovers and similar large machinery come with a high price tag, so it’s often cheaper to rent them on an as-needed basis. Companies avoid the high upfront costs, freeing up capital for other investments.
2. Maintenance Savings: When renting, maintenance and repairs are typically the rental provider's responsibility, relieving the company of additional expenses and downtime.
3. Storage and Transport: Large equipment requires dedicated storage space and substantial resources for transportation. Renting eliminates the need for both, reducing overall logistics costs.
So, if a construction company only needs an earthmover for a few weeks during the early stages of a project, renting allows them to use the equipment without the long-term commitment of ownership.
Bottom Line:
The popularity of tool hire options among DIY enthusiasts and small or established construction companies is for a reason. Above, we have also mentioned scenarios that can make it easy for anyone to make a decision.
If you still have any queries regarding the equipment hire option or are looking for a tool to hire, contact our team today. We have experts in our team to find customers to find the right tool based on their requirements and also help them assist in using the tool or clearing their doubts.