As a construction company, you have a lot of things that need to be moved. From dirt and gravel to rock, tree stumps, and construction supplies, it can seem like you spend entire days just moving items from one location to another. And without heavy equipment, this would be almost possible to do. That being said, having heavy equipment is a necessity in the construction industry, so should you buy or rent it?
SITECH Rocky Mountain offers the best construction management software and technology. We offer machine control systems so you can get your work done faster and smarter. Our surveying equipment helps you know exactly where to build your structures, and our paving control solutions helps you to speed up your paving production and output. Below, we’ll offer up tips to help you decide if you should buy or rent construction equipment. Connect with us today!
5 TIPS TO DECIDE IF YOU SHOULD BUY OR RENT CONSTRUCTION EQUIPMENT
Consider Frequency of Use
How often will you be using a particular piece of construction equipment? If you only occasionally use it, then it’s best to rent. This will be much cheaper than paying for your piece of equipment, its upkeep and maintenance, and finding a place to store it when not in use. If you use your heavy equipment almost every day, then it’s definitely worth investing in it, especially if you think your construction company may be doing jobs outside of normal business hours.
Consider Cost of Financing
Financing and the interest rate you receive can make owning your construction equipment a big expense. As soon as you buy your piece of machinery, it will begin to lose value and depreciate, which will impact your balance sheet. You should consider all options when looking to buy a piece of construction equipment, such as 0% financing deals, purchasing used heavy equipment, and consider which brand will hold its value the longest. Take a hard look at your current financial situation and consider if a construction payment or taking the capital to purchase equipment is in your company’s best interest.
Consider Costs and Benefits
There is more to owning construction equipment than the monthly payment. There is the cost to maintain your equipment, fuel costs, and transportation costs. After all, even if you have a wheeled piece of equipment, you can’t drive it long distances; you’ll need a trailer to haul it, which is even more equipment to purchase, maintain, and store. Plus, you’ll have to insure it against damage or theft and more. However, if you are using your construction equipment every day, the benefit of not having to wait for a rental during high demand times so you can better serve your customers will be worth it.
Consider Your Market
If you are located in a competitive construction market where other companies have their own construction equipment, it may behoove you to invest in the purchase of heavy machinery so that you can hang with the big boys and maintain market competitiveness. Access to rental heavy equipment also plays a factor in your market. If it’s hard to get a hold of a skid steer when you need it, it will probably be worth purchasing one. You run the risk of losing customers if you don’t have the equipment to do the job and either have to postpone the job or not take it in the first place.
Consider Fleet Management
If you own a lot of heavy equipment, there will be a lot of logistics involved in managing it. From transportation and storage to allocation to jobs and other logistics, there is a lot of work to be done. SITECH Rocky Mountain offers many fleet and asset management tools that you can use to help you with deployment, production, and the health and maintenance of your heavy machinery. From construction management software to tracking your equipment using RFID technology, we can help. Learn more from us today.
CONSIDER SITECH ROCKY MOUNTAIN FOR ALL YOUR CONSTRUCTION MANAGEMENT NEEDS TODAY
Running a construction job site is a big responsibility for a project manager. From coordinating subcontractors and supplies to ensuring you stay on-time and on-budget, you have a million things to do each and every day. With our construction project management software, you’ll be able to streamline your job site and your daily tasks. We help you with Trimble survey equipment, grade control systems, machine monitoring, and training opportunities on our equipment. In addition, we offer rental equipment as well, such as rental surveying equipment.
SITECH Rocky Mountain serves Colorado, New Mexico, and far west Texas. As your construction technology partner, we are here to support you every step of the way.
If you are interested in partnering with us for your construction management software needs, reach out to a team member today!