The Benefits and Challenges of Renting vs. Buying Construction Equipment

In the construction industry, there is a heavy reliance on firms to have access to suitable machinery and equipment. Put simply, construction vehicles, digging equipment, and construction machinery play a key role in all parts of construction projects.

This equipment allows construction firms to move large volumes of materials and undertake each stage of construction projects quickly, efficiently, and safely while reducing the reliance on manual labor in a range of tasks.

Construction companies will inevitably need to decide on whether to rent or buy key pieces of heavy machinery and equipment to complete their projects on time and to the required standard.

As this article will demonstrate, there are benefits and challenges to either method of acquiring such equipment. A lot depends on the size and scope of your construction firm, the suppliers that you have access to, and considerations for the maintenance of key equipment.

For smaller construction firms

Firstly, it is important to consider that smaller construction firms may not have suitable levels of income and funding to finance the outright ownership of some construction equipment. It is estimated that small construction firms in the US will have an average annual income of around $150,000.

When you consider that some items of heavy machinery and construction equipment can cost far more than $150,000 to purchase outright, it becomes obvious that renting key pieces of construction machinery is a sensible option for smaller firms.

However, there is the option to purchase used construction equipment for companies with smaller budgets. For example, a used excavator can cost between 25-40% less than it would cost to purchase a new one. This may allow growing construction firms to consider such acquisitions for essential equipment that is used regularly.

Spare parts and maintenance considerations

One of the key benefits that comes with renting construction equipment is that there is no need to pay for maintenance or servicing costs to keep the machinery in perfect condition. A firm will simply hire the equipment when it is needed, and the supplier should ensure that the equipment is in a suitable condition for the work.

However, when buying equipment outright, some suppliers will provide maintenance and service packages as part of the ongoing support for the acquisition. For example, if your firm is searching for Aggregate equipment for sale, the supplier may also offer ongoing support for this equipment.

Reputable suppliers can include access to dedicated service techs and industry experts. These staff will work with your firm to determine timescales for maintenance and service of the equipment, potentially offering a package of services for a pre-arranged monthly fee.

Such services can help to ensure that your company has a clear understanding of the total cost when purchasing equipment outright, allowing you to effectively budget for the ongoing effective use of these items.

Finding a reputable supplier

Briefly, whether you are renting or buying construction equipment, one key factor remains the same. You must ensure that you search for suppliers that have built a reputation for quality and service in their field. If you are hiring equipment, you need to be assured that it will be fit for purpose, in perfect operational condition, and safe to operate.

When purchasing, you will benefit from using a firm that offers comprehensive after-sales support and can offer highly competitive prices for the equipment. Ideally, speak to other building contractors to find out which firms are dependable and trustworthy when seeking to rent or buy.