Machinery

5 reasons why you should hire - instead of buying equipment!

May 22, 2018
Machinery
22/5/2018

5 reasons why you should hire - instead of buying equipment!

Hiring equipment such as diggers and scissor lifts is a great way to ensure that your business has the gear it needs, when it is needed. Without the right tools and machinery, getting the job done properly can be a challenge at the best of times.

If you only need one or two machines, and you use those same machines almost every day, it can make sense to buy equipment. However, if you or your team uses a range of machinery, services a number of different job types or you don’t have clarity about exactly when you will need these resources, then hiring equipment is a great option.

In this blog post, we look at the 5 main reasons why contractors choose to hire equipment instead of buying it outright.

 

1. Only pay for equipment when you actually need to use it:

Machinery used on building sites takes up lots of space, can get in the way when it’s not being used and costs a significant amount of money to own and maintain. If you need an excavator for two days a week, why not just rent it for two days at a fixed price rather than paying a lump sum to buy it plus all the ongoing maintenance and repair costs.

 

By renting equipment, it is easier to understand the costs of doing a job, which means that you can be more competitive when quoting for work, and have a better understanding of where your money is going.

 

2. Equipment sitting idle costs you money - servicing, repairs and storage costs add up fast:

As mentioned above, if you are using an item of machinery almost every day, it can be a good idea to own your equipment. However, if the nature of your work varies and you don’t always need to use your excavator or access equipment, then renting gear can be a great way to go.

Not only will you save money on the upkeep and storage costs of looking after your machines, but you will also have more cash free to use elsewhere, resulting in less money being required to run your business.

For businesses that already own excavation and access equipment, but don’t use it all the time, EquipmentShare provides an ingenious solution: we provide a marketplace for these companies to rent out their machines to other contractors when they are not in use, creating a passive income instead of a necessary expense. We are the “AirBnB of heavy construction machinery”.

 

3. Someone else looks after repairs and maintenance so that you can focus on what you do best - getting the job done:

Time is precious. In business, time is money. So why spend your valuable time on tasks that don’t make you money like getting your machinery to and from the site, and making sure that your equipment is properly maintained?

By engaging quality hire companies, you can relax in the knowledge that the gear you use is being maintained properly. And if something does goes wrong on site, it’s easy to get another working machine out to you ASAP, therefore minimizing downtime and allowing you to meet your clients deadlines.

 

4. Hiring equipment makes your business more scalable as you grow:

As your business grows, you will need more equipment to get the job done. By renting machinery rather than owning the assets, you can scale your business without needing to take on loans to buy more equipment.

 

 

This makes your business model much simpler, and means that you don’t need to worry about finding places to store your growing collection of machinery. Which leads on to the final point...

 

5. In times of trouble, your risk is lowered:

If your business loses important clients, shrinks in size or the construction industry slows down, you aren’t left holding onto costly machinery.

 

 

This takes much of the risk out of growing your business, by converting fixed costs into variable costs. What do we mean by that? Rather than paying lump sums for large equipment, and paying for a myriad of necessary servicing and repair costs, you just pay for the equipment when you need to use it.

If you want to talk more about how we can help with your equipment hire needs, feel free to get in touch.