It’s understandable for people to be put off renting machinery, when it may look cheaper and a better long-term investment to buy something.
Renting Machinery is on the Up!
Between 2011 and 2014, a survey conducted by Purchasing.com of over 70,000 CEOs, business managers, and procurement professionals found that the rental demands for heavy machines (excavators, pole drills, landscaping machines etc) were at all all time high. Within those four years, rentals for wheel loaders shot up as
high as 273%, truck loaders at 925% and standard forklift rentals hit a 90% increase.
The massive increase in rentals cannot be specifically pin-pointed to one cause or reason. However, what we can confirm is that the rental industry has seen a continuous rise since 2014, and I personally cannot see it faltering any time soon.
Like I mentioned before, people are usually quite dubious about renting machinery, as they may feel it’d be more worth their money to buy it outright.
So, is it really worth renting?
I’m sure we’ve all been guilty of spending a large amount of money on something (not necessarily machinery) to only use it once, and for it to remain in the dark depths of your garage.
Naturally, this leads to equipment deprecation, and the temptation to then sell-on this item for sometimes, a much lower price. Renting, therefore, can become a fantastic alternative, as rental fees are also often immediately deductible as business expenses (as opposed to depreciated over time). Which essentially means that both the consumer and the construction business owner’s benefit.
Renting is Cost-effective in the Short-term
Let’s look at this logically:
- According to Warehouse IQ, a brand-new 5,000lbs forklift would cost you between £8,500- £12,000. At Mteevanhire, we rent them out at modest prices, and depending on your circumstance/the amount of time you require it, you may be able to save yourself a small fortune. Have a look here for more information regarding our forklifts!
- Buying a skip loader outright will cost you £17,500-£30,000+ – you’d have to have your heart set on construction for the rest of your life if you even contemplated buying one of these. We hire them out at discounted rates depending on circumstance and the job, take a look here for more information.
- Turf cutters are becoming increasingly popular rental choices, and with summer fast approaching, now’s the time to invest in one of these. Buying them would set you back around £1,500+ whereas we rent them out at £45 (1 day), £90 (1 week) and £63 for a weekend. We are also very flexible in terms of how long you may need it for.
- Sometimes you may find that you need a specific item for one specific job. There’s no point in your forking out a large sum of money for something you’ll only need for literally one job. Under our Sanding and Surfacing section, you’ll find a plethora of niche and unique items available to rent at very modest prices.
New Technology Aiding Rental Businesses
As of late, apps have made their way into the construction business, and they’ve made a very positive impact.
Take Getable for example, they’ve been making good progress since their launch in 2015 with their easy rental app. The app essentially matches construction contractors looking to rent equipment and machinery, to those looking to rent out their own equipment.
Sort of like a dating site… but for machines, brilliant, right?
TechCrunch had their own say on the rise of technology and apps in regards to the construction industry:
“As software eats the world, it seems no industry is safe. One vertical in particular that appears to be getting more attention from startups is construction, where we’re seeing new apps pop up to make building things a whole lot easier and more efficient.”
To summarise, be wise when renting!
From personal experience, and logistically speaking, it makes far more sense to rent than it does to buy, in most cases anyway. Renting gives you the opportunity to ‘upgrade’ your equipment at any given time, for minimal cost, and saves you space in your garage, and/or storage area.
Additionally, renting allows you to trial a piece of machinery first-hand, rather than finding out it’s not suitable for the job you’ve bought it for, and are then unable to return it.
Of course, from this article it may appear as though you should be renting everything, ever! Obviously there are circumstances where buying is the logical solution, smaller tools, machinery that is needed for daily use throughout the years, contractors that are in constant need of certain tools and machinery etc.
If you’re caught between two sides of the coin in regards to buying or renting, why not give us a call? At Mteevanhire we’re happy to help, no matter how big or small you problem or inquiry may be.
If this article helped you in any way, please feel free to leave a comment below!