Buying or Renting light equipment
The first step to renting light-equipment will be to evaluate the current financial situation of your company in conjunction with external factors such as the duration of the project in which the equipment will be performed, the needs arising in the workplace, and the tools interchangeable to be used.
ACQUIRE WHEN YOU FIND THE FOLLOWING CHARACTERISTICS:
-The company maintains an adequate cash flow to pay for purchase either by financing, credit, or the purchase was planned with cash.
-You have the means to store and maintain the machines that you will acquire. Remember that each piece of equipment must follow a scheduled maintenance scheme recommended by the manufacturer.
-You frequently receive contracts in which you could use the equipment you want to acquire. A machine in constant use implies a workload of more than 1000 hours per year for light-equipment.
-The contracts to which the light-equipment will be submitted have a duration of more than one year, this implies the use of the machine for more than 1000 hours.
RENT WHEN YOU FIND THE NEXT SITUATIONS:
-The financial situation of your company doesn’t allow you to solve a purchase even if it could be made by credits or financing.
-Specific needs arise in a work in progress for which you weren’t prepared.
-The equipment you will use is intended for work for less than 1000 hours per year.
-The machine is used in specific construction niches to perform uncommon functions.
-There is a downward economic trend that may affect the construction market derived from a recession or financial problems in the country where you reside.
-You have the necessary infrastructure to keep your equipment safe and provide scheduled maintenance according to the manufacturer’s specifications.
Advantages of renting:
-Financial risks for the acquisition of equipment are mitigated in the face of global economic variations that directly impact infrastructure projects of the private and public initiative.
-Greater financial flexibility for the company that rents equipment.
-You can select equipment for rent with specific characteristics in size, power, fuel consumption, etc. That minimizes operational and logistics costs.
-Niche projects can be performed at a lower cost by delegating maintenance, service, and repairs to the company that provides the rental.
-Allows the contractor to test new technologies before acquiring equipment, remember that recent generations tend to have substantial advantages in fuel consumption of up to less than 40% compared to old equipment, as well as longer life in wear components.
Advantages of buying:
-In used equipment, higher profits are obtained compared to rented equipment.
-In compact equipment, the purchase price of machinery with recent technology is much lower compared to heavy equipment.
-Complete availability of the equipment.
-The tools commonly used in light-equipment have a significantly lower price compared to those of heavy machinery, so acquiring accessories will maximize applications and reduce costs in the future.
Conclusion: The purchase of a machine implies a high level of commitment in every sense since you must include insurance, maintenance, licenses, operating expenses, and transport among others. This will eventually provide substantial profit advantages from acquiring the equipment compared to rent. However, an assessment of the current environment is required before proceeding.