The Canadian construction industry will witness a robust 4% growth in the year 2018 after the 1% decline that it had to confront in the year 2017. And as the industry gears up to compensate last year’s loss, it is time to rethink your strategy, and that starts with the equipment.
The equipment and machines are the important aspects of the construction business because at every inch you need devices like the graders, cranes and an array of other devices too. The device deployment in your business should be a strategic move.
Buying new machines can break your bank account. You cannot simply go on adding machines just because you need them, you have to consider the rental options. The Canadian equipment rental market is expected to reach $5.3 which will further grow and cross $6 billion by the end of 2021
The key growth drivers:
The leasing of the machine is proving to be beneficial because of the low administrative overhead, fewer expenses and no maintenance cost is acting as a cost-cutting alternative to the other options like buying a new or used machine.
Since the replacement costs and other miscellaneous costs pertaining to the buying regulations are omitted in the renting process, it eases the stress.
The technological advancement such as the apps for monitoring fuel consumption, the multifunctional devices, ergonomic controls, remote monitoring, GPS features and a host of other features are driving the growth of the industry.
It might not be a good idea to buy a machine that is equipped with hi-end technology because the cost can be insanely high, but it would be a less costly affair if you hire those machines when you need it. Yeah, of course, it works like a customized service.
In addition, the growing number of leasing companies with hi-tech devices, superlative service and quick response time are fueling the growth. Apparently, the construction companies find these services quite attractive and it seriously makes sense to hire equipment.
Why should you choose rental equipment?
First, the rental equipment will come with the operator that means you do not have to spend money on training your crew to learn functionalities of the machines. Moreover, a novice operator is likely to increase the fuel consumption and might not be able to work efficiently and that can damage the quality of the work.
In addition, renting machines will free you from the transportation and storage cost especially when your construction sites are far-flung. This is a major cost that you can save if you hire the construction equipment
When you need a certain equipment for a particular job and you will not be using it for the next couple of weeks because the need for the equipment is not a regular occurrence, then it makes sense to go for the rental companies to provide you the equipment and let them handle the equipment need and its optimum usage as they can find other users to use the equipment.
The rental companies will provide you the technologically advanced machines that will improve the productivity. If you buy a certain machine today, the chances are there that after few months it will be outdated because the technology is advancing faster
The maintenance cost is one of the major factors that hamper your financial health because, at times, you need to spend a hefty amount of money in equipment and repair services. Sometimes, you might need to buy new parts and by choosing the rental companies as the equipment provider; you can certainly eliminate the maintenance cost.
Now, if you want to explore new avenues and new kinds of the project where special equipment is required, then you can simply undertake the project without worrying about the machines because you can hire them. Yeah, right, the rental companies open the doors for new project opportunities.
The rental costs are tax deductible wherein buying a new device will hamper the health of your bank account and over the time the value of the machine will depreciate and in both of the cases, you are going to lose money.
The things to be considered while hiring equipment from rental companies:
The first thing that you need to consider is the rental budget, which means, you must know your exact requirement and that you can understand by looking at your project schedules. You must also understand that some projects need multiple machines on a certain day, hence decide the number of equipment that you want to hire and make a list of these machines.
The next important thing to do is to look at the quality of the equipment and ensure that you hire certified equipment. Once you have verified the certification, now it is time to move to decide the timeline. Yeah, you must know the duration that the machine will be working at your site.
You must also inquire about the overtime fees because some companies will charge you extra money if you happen to use the machine beyond your timeline or deadline. So, speak about that aspect. You should be asking about the additional fees, sometimes; you might need to pay extra money for various reasons.
And then, of course, you must be finding out the billing protocols and policies, the payment structure and method. Because different companies will have a different kind of billing policies; hence, it is imperative that you understand the billing policy. The bottom line is, you have to clarify the cost factor and that has to be detailed. Yeah, the detailed clarification is important.
You should not overlook the maintenance and rental records of the machines. Since these machines work regularly, you might need to know the history of the machine to ensure safe operation. Find the maintenance schedules.
At times, the devices fail to work in between the project and at that time, you need either a replacement or a repair; hence, make sure that you ask them about the response time in case of the mechanical failure.
You should also be looking at the working hours, pickup and delivery times. Find out whether someone will be always available during the operation to assist you with the problems that might arise
Ask about the brands of the devices the company offers. You cannot simply hire a device without knowing the return policy. Ensure that there is an agreement that defines all the terms and conditions. It is better for both the parties to avoid any kind of misunderstanding.
Since the rental company will be sending the operator with the machines, it is important to understand the training procedure of the company that they follow. The operator should be well-trained and efficient.
Apparently, buying new equipment is a costly affair and looking at the benefits that the rental companies offer you, it won’t e wrong to say that hiring the machines from the rental or leasing companies is always a better option than investing money in buying new equipment.
And that does not mean that you would never buy a machine. Of course, you must buy those machines that you need on an everyday basis. It does not make sense to hire a machine that you always need. So, understand your requirement and use the equipment rental companies to your advantage. It should be thoughtful, strategic and a rational decision.