Construction projects and businesses never run out of work since every year or even every month, there are new projects to build or housing developments to work on here and there. It seems sensible as a construction company to work toward purchasing and using your own heavy equipment. After all, you work in the business, so it naturally follows that you should have such. However, there are some circumstances where hiring equipment on a project-based basis is more favourable for you. The following are a few of those instances, which you will find applicable, especially if you are still a small company.
Usually, you need heavy equipment for large construction projects such as malls, condominium buildings, commercial towers, and other similar structures. On the other hand, you may also accept small jobs such as houses and other relatively small commercial spaces for local businesses. In the case that you accept more small jobs than large ones, it will be best to hire heavy equipment instead. You will avoid wasting money on machines that you will not be using that often, and you will also be able to put the money into better investments such as skilled personnel or better marketing.
Your own heavy equipment for business is a worthy investment indeed, especially when you are already established and have a lot of projects in your hands. However, if you are still starting out, renting the machines instead is the better way to go. The initial cost of purchasing a piece of heavy equipment can take a huge chunk out of your company’s budget, and it can hurt a beginning company such as yours. Renting equipment does not require a huge cost upfront, which will allow you to save money while you are still a small business. Use those funds to make your company grow in other ways instead.
Proximity and Logistics
From what you can get from their name, pieces of heavy equipment can take a lot of work as well as money to transport from one place to another. Moving your equipment will mean that you will have to provide funds for logistics, and this can also eat at your budget if you work on a lot of projects located in different sites. On the other hand, when you rent tipper trucks and diggers, you do not have to worry about how to transport equipment. All you have to think about is how you will do your job efficiently.
Once you are already big in the construction business and you are accepting a lot of projects for large structures, then maybe it’s the right time to buy your own. In the meantime, while you are starting out or at least catering more to smaller jobs, hiring the heavy equipment is the more economical choice for you. It is okay for any business to start small, as long as you dream big, work hard to provide the best service, and work with competent corporate partners in the field.