Renting industry equipment was often met with a fair share of disagreement. Namely, renting was considered to slow down the industry growth and deprive small businesses of the long-term assets necessary for stable development. Both of these statements are, in fact, wrong. According to one US market research from July 2016, the rental of contracting equipment generates an additional 46.9% of industry growth. Here’s how renting benefits the businesses who lack the equipment.
Reduced Up-Front Investment
Every business starts from scratch. Not every business has the funds to immediately acquire all the necessary assets. For the vast majority of such companies, waiting for the right circumstances to make substantial up-front investments means bringing the entire business to a halt. The businesses who rent the necessary machinery are in the position to continue with their operations and generate revenue until they are able to obtain the piece of hardware they need.
The fluctuation of the market demand is an issue that plagues all businesses, regardless of their size. While some of them are able to effortlessly bridge the periods of long slow-downs, for others stockpiling the unnecessary equipment represents a huge waste of the precious resources. Renting the equipment offers such businesses a great deal of flexibility and scalability. When the spike in demand occurs, business can easily rent all the machinery they need. Once the equipment is used, it doesn’t generate any additional costs.
The Matter of Maintenance
Speaking of additional costs, all equipment needs maintenance. For start, all machinery needs to be properly stored and protected from the elements. Furthermore, the price of spare parts and maintenance in the long run overshadows the price of the equipment itself. These costs have to be taken into consideration when making the annual budget. Renting allows business owners to use the equipment they need to finish the job and leave the maintenance to the vendors.
The Depreciation of Equipment
All businesses buy the equipment hoping that they will, at some point, be able to sell it and return some of the invested money. Unfortunately, the market situation rarely allows for such optimistic thinking. The price of any device, tool or piece of the equipment starts to drop as soon as you buy it. The constant influx of more streamlined, affordable and newer alternatives doesn’t make this situation any easier. When you take all this into consideration, renting only what you need and when you need it does make a lot of sense.
The Opportunity to Try Out the Equipment Before You Buy It
Of course, not all businesses are planning to rent the equipment forever. In some cases, making an up-front purchase is a must. So, if you are, for example, planning to acquire an elevated work platform, you can always find a reliable ewp hire company from Melbourne, Sydney, or any other city your business may be located in, give the platform a try and make the final decision afterwards.
Tech Support and Assistance
Getting a handle on some new piece of equipment always involves a certain learning curve which can be very steep. Taking into consideration that you may sometimes need a specific piece of equipment for a specific, one-time purpose, going through all this trouble is simply not worth it. Fortunately, it is common practice among the vendors to offer technical support, instructions and assistance regarding the equipment. This way, responding to immediate and not that common demands becomes much easier.
As we can see, renting the equipment isn’t really harmful. On the contrary, it offers businesses various benefits they wouldn’t get if they were making an immediate purchase. Some businesses even choose renting over purchasing as a long-term solution. Put the numbers on the paper and you will see that your business can benefit from such an approach as well.