Some construction business owners tend to assume that for the success and profitability of their organisation, they need to invest in heavy equipment machinery that will enable them to meet their customers' needs. However, it is also important to note that choosing to hire this equipment may be a more economical option for your business in the long run, especially if you have a start-up construction company. Instead of investing all your cash into acquiring assets, you may want to consider hiring the equipment as you build your business. So why should you consider equipment hire when contemplating fleet expansion?
Equipment depreciation is not an issue for you to contend with
The construction industry can be quite unpredictable, and this can result in a very unforgiving climate for a business that is starting out. For instance, you may invest in a piece of equipment, assuming that it will be of value for the long run, only to find its price has dropped dramatically in a few months. This would inadvertently severely depreciate the value of the equipment. When you choose to rent your heavy equipment, you do not have to worry about fluctuations that would happen with the market price. Additionally, rental prices tend to stay consistent, which makes it easy for you to budget for your business.
Low and high seasons do not become part of the equation
Another reason why you should consider equipment hire when building your construction business is to prevent your equipment sitting around unused for a significant period of time. The construction business ebbs seasonally. Some months tend to be busy while others may be quite slow. If you buy your own heavy construction equipment, you will have to contend with it sitting in storage during the slower months. Not only will you be paying for the maintenance of the equipment but you also have to realise that the equipment will not be making you money during this period. To avoid this, you should consider heavy equipment hire. This will give you the flexibility to pick out equipment, as your business needs it, rather than have a fleet that is not on commission.
Storage and maintenance is not your responsibility
Heavy equipment machinery comprises numerous movable parts. If these parts are not cared for in the appropriate manner, it increases the chances of your equipment malfunctioning. Therefore, you would be tasked with paying for routine maintenance for your equipment. Additionally, you would also have to pay for storage of the equipment in the event that you do not have a large space available to you. If you would like to avoid these costs, you would be better off with heavy equipment hire.