When Would Construction Equipment Rentals NYC Be the Best Solution for Your Business?
Construction companies are essential (not to mention lucrative) businesses in any community. In most locations, there is always a healthy rate of growth and development, so there will also always be homes, schools, commercial centers, offices and public spaces that require successful building.
Different companies come in different sizes and will thus have varying ranges of services that can be offered. But however big or small a construction firm’s projects may be, the use of top-notch construction equipment is crucial.
A major decision
One of the biggest issues that a construction company typically faces is the matter of obtaining the equipment that they need to effectively perform work at job sites. Building projects can be complex and a number of different machines must be utilized in order to get them started and under way—electric tools, industrial forklifts, aerial equipment boom lifts, concrete finishing equipment, light towers, portable air compressors, and power sources are just a few examples.
It’s not a given that a construction company will have its own equipment to use. This may be true for some, but for others, renting or leasing the equipment they need for their work is quite common as it can offer greater convenience, more cost savings, and increased flexibility.
So when is it ideal to purchase your own tools and machinery, and when is it a much better idea to choose construction equipment rentals NYC building specialists share the following insights:
Opting for rentals
The decision to rent construction equipment is most suitable when you’re a small construction company that currently cannot afford to purchase your own. Such a setup will provide the following advantages:
- You pay for equipment only when you need it for a job.
- You can rent the pieces for any length of time—days, weeks, months or years.
- The rental agreement comes with provisions for maintenance.
- If a project does not push through or if you are dissatisfied with the way a piece of equipment works, you can return it to the rental company.
- You gain access to the best and latest equipment because rental companies regularly upgrade their inventories.
- There’s little paperwork involved since each time you rent equipment, only one cost and once invoice is necessary.
Considering a lease
Leasing construction equipment, on the other hand, is a good option for small construction firms or larger ones that are aiming to conserve their capital. In this agreement, you will be leasing equipment for an indicated number of months, for a flat monthly rate. Once the lease ends, you can choose to return the equipment and lease new ones, or you can go ahead and buy them.
The benefits of leasing include:
- Budgeting is simpler because of fixed monthly payments; some leasing companies also offer flexible payment plans which can be a great advantage as you transition from busy seasons to slower months.
- Monthly payments can be deducted as operating expenses.
Purchasing your own gear
It’s advisable to buy your own construction equipment if you’re a larger, more established contractor or business that takes on projects and uses equipment at maximum capacities.
The good things about buying are:
- You will have all the equipment you need on hand for projects whenever you need them. You won’t have to worry that a rental company may not have an available piece that you require for an upcoming job.
- -You can deduct repairs, insurance, depreciation, interest and taxes so that tax bills can be reduced.
Of course, each option does have its own setbacks: shouldering storage and transportation costs (when purchasing), higher interest rates (when leasing), and not having the reassurance that what you need will be available to you (when renting). Still, each construction company will have its own requirements and goals, so selecting the best one to improve productivity, work standards and customer service is a must.