The expense involved for a contractor in regards to large equipment needed for a job is a significant part of the cost of doing business. At some point, every contractor may consider renting some of this equipment, but there are good reasons to rent all of it. The following are among the most important.
Less commitment to liabilities
If you're like many contractors, you will be financing your equipment purchase. Obviously, your company will also be committed to making payments on a monthly basis, whether or not you have a job lined up for the future. But the construction industry is often boom and bust. Even when times are good, you never know when the work will dry up. If you get fewer jobs, your equipment will be under utilized. Without any work, your equipment will be sitting idle, doing nothing but eating up your money.
No equipment-related overhead
Things such as repairs to your equipment is something the rental company takes care of. Also, there are no time delays related to repairs. And if there are any performance issues, you can send it back and get a replacement. You don't have to be concerned about storage space either. When the job is over, the equipment goes back to the rental company. Most construction equipment can be delivered and picked up at the site of the job.
You can experiment with new equipment
If you are leasing your equipment, you can experiment with an upgraded version of what you normally would use to see if there are productivity advantages to using it. Of course, you can do this even if you have your own equipment, but for most contractors, the expense of having equipment means it must be in use to make it worth the purchase price. With many rental companies, you can rent a better piece of equipment for a short period of time. If it isn't worth using, you can always switch back to the equipment you would normally use even before the construction job is finished.
Renting expands the capability of your business
By having a wide range of equipment at your disposal, you can bid on more jobs and are not limited to those jobs that fit the equipment in your inventory. This makes your company more adaptable when there are fewer construction jobs available during slow economic times. Using rental equipment also allows you to bid on larger jobs that you would normally have to pass on because the job is simply too big for your equipment's capacity.
These are only a few advantages to renting your equipment. More information can be found at your local contractor equipment rental company.