There are several benefits to Equipment Rental. They reduce fixed costs, reduce financial risk, and give you more options. In this article, we’ll explore the advantages of equipment rental in construction, mining, oil & gas, and other industries. Regardless of the type of project, equipment rental is a great way to avoid unnecessary costs and maximize your productivity. Read on to discover the benefits of Equipment Rental and how to find the best rental company for your project.
Equipment rental is used in construction, oil & gas, and mining industries
While buying heavy equipment is an expensive proposition, renting allows you to avoid high initial investments. Additionally, equipment rental reduces risk and stress of economic bottlenecks. Listed below are the benefits of renting heavy equipment. Read on to learn about the types of equipment and the rental process. Here are some common examples of industries where equipment rental is used. You’ll be glad you did! Whether you’re in construction, oil & gas, mining, or oil and gas, equipment rental is the answer.
Growing construction activity in emerging nations is a major driver of growth in the heavy construction equipment rental industry. In the U.S., government investment in infrastructure has led to an increased demand for heavy construction equipment. President Obama announced a $ 2 trillion plan for construction infrastructure in March 2021, including transportation infrastructure, broadband, power grids, and residential and commercial buildings. These factors have helped the construction industry grow over the last few years.
Magazine advertisements are another excellent method of advertising. Typically delivered monthly, bi-weekly, or weekly, business magazines help you to reach more potential customers. Make sure you choose the right magazines based on the industry you serve. For example, if you’re in the mining industry, you should use magazines that focus on this industry. Newspaper articles also make a good choice, since they are aimed at local audiences. Similarly, product catalogues help to promote your equipment rental business.
While owning heavy equipment is expensive, managing it is a huge responsibility. Hiring heavy equipment can relieve you of these burdens, freeing up your time and money for more important work. The advantages of renting are numerous. The following are just a few of the benefits of Storage/ Equipment Rental Site Selection Software. If you need equipment for a specific project, consider renting it. It’s a great way to stay ahead of the competition.
The equipment rental market is fragmented. A number of rental companies have emerged, focusing on niche technology that enables them to cut operating costs and require less maintenance. Other major players in the market include Atlas Copco, Caterpillar, Hertz Equipment Rental, Sunbelt Rentals, and United Rentals. You can find a sample report on the equipment rental market in US from Technavio’s research library. The sample report has multiple sections that highlight the market size, forecast, drivers, and challenges.
It reduces fixed costs
For companies that cannot justify buying expensive equipment, lowering fixed costs through equipment rental can be a viable option. Regardless of industry, equipment rental can help companies keep costs down while providing a variety of benefits to customers. For instance, it allows companies to take advantage of upcoming opportunities that they may not have the working capital to complete in-house. Moreover, the costs of equipment rental can be managed without reducing available working capital.
Most businesses do not know the amount of revenue they will receive from a given month, so they need to know their fixed costs. These include electricity, gas, phone, trash, and sewer services. Although some of these costs may increase with production, they are considered fixed costs. They must be paid no matter what production occurs. As a result, businesses are often reluctant to increase their fixed costs. However, the benefits of equipment rental can be enormous.
When it comes to business expenses, companies generally have two types of expenses – variable and fixed. The former are more stable and don’t fluctuate with output or sales. On the other hand, variable costs fluctuate with activity. For example, the price of rent and salaries stays the same for the duration of the lease. In contrast, variable costs fluctuate with the amount of products and services produced. Unlike fixed costs, these are easier to reduce, since they don’t require drastic changes to the business’s operating process.
Fixed costs include rent and insurance, which do not change as the number of products manufactured. These costs include rent, insurance, administrative salaries, loan payments, equipment leasing, and advertising costs. Fixed costs are necessary, but they should be kept low during the early stages of the business. This is because it takes time to build a reputation and attract customers. In addition, many companies are forced to pay property tax, which is a fixed expense.
For businesses that are considering equipment rental, it’s important to understand that the cost of owning and operating equipment does not pay off until a certain point in its utilization. While it is possible to maintain an inventory of equipment, it is more efficient to rent most of the equipment. In addition to this, renting equipment allows companies to crunch the numbers and determine how much it actually costs to purchase and maintain certain pieces of equipment. This will give them a better idea of how much they will pay to rent the equipment and what recovery technique will best work for them.
It minimises financial risks
While renting equipment can be beneficial, there are some risks involved. If you are renting a car, for example, you could incur a huge financial loss if the car gets stolen. You can minimize these risks by paying a security deposit to the rental company. The amount of the security deposit will depend on the type of equipment and its intended use. In general, a security deposit of 15% should be paid for renting a heavy car.
If you’re looking for a better deal on a machine than what you could afford to buy, renting it may be a good option. Renting enables you to try out different makes and models before you invest in a particular machine. You can also assess the machine’s performance before buying it, thereby avoiding a large financial risk. Furthermore, you can use the money to pay off your down payment on the machine in case it doesn’t perform as you anticipated.
Another benefit of renting is that you can avoid the high fixed costs associated with buying a large fleet of equipment. For example, if you need a truck for construction work, you can hire a rental truck instead. Not only does this reduce your upfront costs, but it also means that you won’t have to pay for reconditioning and maintenance. Also, renting eliminates logistics issues, which means that you’ll be able to focus on your core business without having to worry about your equipment.
While purchasing a heavy piece of equipment outright is an attractive option for many construction projects, it can become an expensive proposition if you own the equipment yourself. You’ll need to secure a suitable location to store it when it’s not in use. You’ll need to install security measures to protect your assets. You might have to hire someone to store the equipment for you. Renting a heavy piece of equipment will reduce your storage expenses and save you time. Simply leave it on the site, and the rental partner will pick it up when you need it.
It gives you more options
There are a number of benefits to renting equipment. One of these benefits is that you can test out different types of equipment before you decide to purchase them. This is important for a variety of reasons, including determining if you really need to buy a certain piece of equipment. Another benefit is that renting allows you to avoid having to travel long distances to get the equipment you need. If you are not a regular driver, renting equipment can also save you time.
Another advantage of renting equipment is that it gives you access to a variety of types and sizes of equipment. Most rental companies have large inventories and don’t require you to visit their physical warehouses to browse through them. The convenience of renting equipment allows you to test out different brands and models. Renting equipment is also more flexible than buying and can lead to more business opportunities for you. One major disadvantage of buying your own equipment is the need for regular maintenance, transportation, and storage.
Another benefit of renting equipment is that you can trade-in older equipment for newer models. This is a great way to replace older equipment with newer models at affordable prices. By renting equipment, you can also upgrade whenever you need to and trade it in when you don’t. Buying new equipment can be an expensive investment because it depreciates quickly. By renting, you won’t have to worry about losing money on unused equipment.