Renting Construction Equipment vs. Buying or Leasing

renting construction equipment concept fleet of cranes

The right construction equipment is crucial to complete any building project successfully. However, it’s important to consider different variables to optimize operating costs and resources as a construction contractor. Should I buy the equipment I need? What about renting or leasing equipment like cranes? These are all questions that may be going through your mind as you look to make the best decision for your project and company. 

Access to the right equipment often ultimately affects the project’s timeline. Owning heavy machinery can be convenient, but it can also be extremely costly with rising prices on machines themselves, the cost of on-going maintenance and other operational expenses. Renting construction equipment is a viable option that allows you to cut down on costs and ensure your job and project runs smoothly and safely. 

Maxim Crane is a reputable crane rental company that offers heavy lifting, rigging and heavy hauling equipment at affordable prices. To encourage you to take up our cost-effective solution, here are a few answers to some questions about renting construction equipment like cranes.   

Why Is Renting Construction Equipment More Cost-Effective?

Why renting construction equipment is cost-effective
Why renting construction equipment is cost-effective

Purchasing construction equipment may seem sensible, but do you know its associated expenses and risks? Read on to find out when rentals are a more cost-effective alternative. 

No Ownership Costs

General contractors often need to allocate a significant chunk of the budget to finance the purchase of construction equipment. This upfront cost for new equipment is high even though the asset can be depreciated over time. The high initial buying cost doesn’t make sense when you only plan to use the tool for a limited duration. The purchase can disrupt your entire budget or potentially tie up your finances by restricting your cash flow.

You may have to seek credit to service the purchase of these pieces of equipment if you still can’t afford the machines, but with current high interest rates, it can create a burden for the company.. 

Renting similar machinery transforms the fixed cost into a variable cost that’s typically much more manageable.

Increased Cash Flow

You can invest the surplus money elsewhere in your company while increasing cash flow by renting equipment. ..

More Affordable Insurance Policies

You also avoid taking out a long-term and more costly insurance policy for heavy construction machinery against theft or damage. Large companies can negotiate affordable insurance premiums because of a larger fleet of machines. However, smaller companies may struggle to get affordable premiums due to lower bargaining power. 

Flexibility to Meet Client Demands

Construction companies often face the recurring challenge of balancing and managing several construction projects simultaneously. Each project may require different machines on the jobsite take on the project. For instance, if your jobsite requires a tower crane, you may also need to rent an assist crane like an all-terrain crane help build the tower or move material around the jobsite. 

Short-term jobs offer a unique challenge since you only need the piece of equipment for a limited duration. Once you purchase construction equipment, you are generally stuck with it for a long time and have to meet associated maintenance and repair costs. This aspect limits your company’s versatility in offering services to your clients. Also, you cannot benefit from the latest technological advances if you buy an older model. Clients value companies that can source the right modern equipment for the job. 

Opting to rent construction equipment allows you to source the right equipment at the right time for your job.  You avoid logistical delays in supplying construction equipment by collaborating with a reliable coast-to-coast provider like Maxim Crane. When you rent construction equipment, like cranes from a company like Maxim with a large fleet of available equipment, you can have the confidence to go after contracts that require many crane types and meeting your customer demands. You can also quickly fill up equipment shortages on short notice.

When choosing a rental company, it’s important to confirm whether your equipment rental company can access various models. A rental construction equipment company should have an extensive inventory to meet your requirements. Maxim Crane has a large modern, dependable inventory of lifting equipment in over 60 fully serviced locations, bringing construction equipment closer to you. Our experienced representatives can help you select the right equipment to complete your contracts efficiently. 

Safer Worksites With Experienced  Rental Operators

Prevention measures help curb worksite accidents. Working with professional and certified operators lowers the risk associated with heavy equipment. They are more aware of potential dangers and are keen on preventing mishaps before they occur. 

Also, having an operator familiar with how the equipment works can reduce your project’s cycle time. The reduced turnaround can result from faster and more accurate digging, hauling, loading and moving material. This effect increases productivity, shortening the time needed to complete the project. 

Maxim Crane personnel are dedicated to completing your projects safely and efficiently. We provide operators with extensive work safety experience, evidenced by having achieved the Platinum Safety Award for cranes and hoists. As you consider your rental options for cranes, you may want to explore an “operated-and-maintained” rental. This type of rental provides all the labor as part of the rental, including certified crane and equipment operators for the duration of the rental

Less (or No) Maintenance Expenses

Owning construction equipment gives you a valuable fixed business asset you can use and resell when needed. However, heavy construction equipment requires regular repair and maintenance to stay operational at peak performance. Most clients want equipment that is at low risk of breaking down mid-project. Ensuring your equipment remains in top condition often translates to more operational costs. 

Also, non-functioning machines erode the project’s productivity, extending the set deadline. Time wasted further reduces the contractor’s profits and reputation due to the constant downtimes. You can incur further repair costs when you:

  • Buy or rent a repair workshop space
  • Buy tools and equipment for repairs and maintenance
  • Pay for repair technician labor
  • Fund for emergency repairs in unexpected equipment breakdowns
  • Schedule regular preventive maintenance
  • Are forced to push back projects because of non-working equipment

Renting construction equipment frees you from the burden of repair and maintenance during a machine’s operational cycle. You conveniently free up funds that would have gone into planning future equipment maintenance. This capability allows flexibility in your long-term financial goals while saving money upfront.

Maxim Crane prides itself in having a scheduled preventive maintenance program. . This service, coupled with our 24/7 availability, reduces any chance of a project stalling due to a machine breakdown. 

No Risk of Depreciation

Like cars, construction machines depreciate throughout their operations cycle due to wear, physical deterioration, and age. Often, contractors require a plan to maintain the asset’s value despite these factors. These measures ensure the equipment owners get the maximum value from equipment upon selling. To maintain the machine’s value, funds get directed into providing the necessary upkeep and maintenance

Also, before buying any construction equipment, consider how long you plan to use it. A worthy investment is something you don’t plan on upgrading in just a few short years. The resale value is usually lower than the initial cost of purchasing the same equipment. Long-term projects, however, seem to benefit from such a purchase as you can optimally use the machine before selling. 

Contractor equipment rental reduces the worry of maintaining the equipment’s resale value. 

Renting construction equipment also prevents problems associated with long-term commitments. You don’t have to monitor the market conditions for any fluctuation. Also, if your assets need immediate liquidation, your money won’t be tied to expensive construction equipment. Partner with Maxim Crane to rent well-maintained construction equipment for short-term use. 

Choose Maxim Crane for Renting Construction Equipment

Front closeup shot of a Maxim crane for rent

Regardless of your project’s size or scope, using the right construction equipment is pivotal in bringing designed structures to life. The decision to rent rather than buy is a good business strategy since the former is a cheaper alternative. You save on capital investment and repair costs while gaining access to the right modern equipment for your construction project. 

A dependable construction equipment company will provide experienced labor to improve project productivity and safety. At Maxim Crane, we have a wide range of heavy construction equipment to accommodate your project needs. Our team is ready to help you find custom solutions that meet your budget and project needs. Request a quote with us today.

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