Large Construction Equipment
Are you interested in managing a large fleet of construction equipment? Buying can be cost-effective in the long-term, but adds a large amount of administrative tasks and overhead costs along the way.
In the event of an equipment breakdown, a company will either need to have able mechanics on staff or hire external mechanics and repairmen. Both options can be very cost restrictive. Internal mechanics can run up a lot of overhead costs. On top of their compensation, they will likely need tools, computing equipment, and a shop to work out of. External mechanics generally charge a high hourly or project-based rate.
If the equipment is rented however, the company only needs to inform the entity whom they rented from. If they’ve rented from a reputable company, they should be confident that the situation will be rectified. By leaving administrative and maintenance tasks to the renting service, a construction company is able to maintain focus on its core functions.
A final deterrent from purchasing equipment is the presence of increasing regulation regarding construction equipment emissions. Due to stricter emission requirements from the EPA equipment purchasers must ensure their equipment does not violate industry standards.² If the equipment violates the guidelines, the company could be subject to significant governmental
Over the past few years there has been a clear trend in the construction equipment field. The procurement decision is becoming more rental focused than outright buying the necessary equipment. Between 2013 to 2014 the frequency of rentals increased by nearly 75%³
A second noticeable trend is the greater emphasis on rental of multi use equipment over single use equipment. This is reflected in increases of rentals of multi-use compact track loaders with simultaneous decreases of rentals of single use bulldozers.