What are the Benefits of Renting Instead of  Purchasing Heavy-Equipment?

This Article Includes

  • What are the Benefits of Renting Instead of Purchasing Excavator Related Heavy-Equipment?
  • How HAWK Excavator Can Help
Schedule More Projects

HAWK Excavator understands the financial challenges for companies associated with today’s construction industry, and other industries that use excavators, long reach booms & sticks, and other related heavy equipment.  This is the reason why HAWk Excavator has made the decision to become one of the only Long Reach Stick & Boom Kit providers that offer the option of renting or renting to own this type of equipment.  

HAWK’s Long Reach Excavator Kits transition a standard excavator into a long reach excavator which increases the flexibility and value that an excavator can provide.  Read further to gain a greater insight into the incredible value that renting instead of purchasing heavy equipment can provide.

Benefits of Renting Instead of Buying Heavy-Equipment_

What are the Benefits of Renting Instead of Purchasing Excavator Related Heavy-Equipment?

With some of the financial challenges that medium-sized companies face today, renting standard excavators and long reach excavator equipment, and other types of heavy equipment has become a viable and economic way of providing equipment for construction and excavation projects; especially for larger projects where the pre-project costs are exceptionally large.  With the U.S. Government’s commitment to improving current infrastructure, and creating new infrastructures like roadways, bridges, and many other types of infrastructure projects, the construction industry is projected to grow at a minimum of 4.5% year over year up to 2027.  

We need to understand, from a business perspective there is a rule of thumb when considering whether to rent or purchase heavy equipment.  If there is a need to use the equipment for greater than 12-months, the better choice is to buy the equipment.  The converse is true; if the equipment will be used for less than a year it is more advantageous to rent the equipment.  The following provides a good understanding of the many benefits of renting instead of purchasing heavy equipment. 

Use the Newest Technology

Accessing the Latest Technological Advancements

Having access to and being able to use the latest excavator technology, and other heavy equipment for medium-sized or smaller construction companies can be of great value.  There are many benefits to using the newest equipment which can include increasing operational efficiency and decreasing the amount of time it takes to complete a project; both of these can amount to greater profits per project.  

Almost every company that offers heavy-equipment rentals provides the latest and greatest technology.  Another benefit is that the maintenance and upkeep of the equipment are done by the heavy-equipment rental company.  This removes that burden from the company renting the equipment which is another aspect that reduces cost and time, allowing the company to focus their investment on other areas of the project(s) they are working on.  Renting instead of buying standard excavators and long-reach excavators, and other heavy equipment enables a company to book more projects, and take on bigger projects than their working capital and budgets allow.  

Try before you buy - Renting

Try Before Committing to a Purchase 

Another benefit to renting is trying out the equipment to make sure the equipment is something that the company would like to purchase.  This helps to ensure that the company is not investing in equipment that does not perform up to their standards and that the equipment includes the product options most desired or required.    

Scheduling and Securing More Projects

When scheduling projects a lot can happen that can interfere with either the start of the project, the progress that is made throughout the duration of the project, or concluding the project so the organization can move on to new projects.  When a company transitions from one project to another there can be a delay if the company is limited on excavators and other types of equipment they have access to.  They have to wait for one project to come to a complete end prior to transitioning the equipment and workers to the new project.  

When renting equipment multiple excavations and other heavy equipment can be rented simultaneously which can reduce the transition time from one project to another, or multiple projects can be worked on at the same time.  A company could go as far as doubling or tripling the number of jobs they do in a given period of time, having a substantial positive impact on revenue and profits.  

On Time

​Maintenance Costs

When a company purchases all of its equipment or a portion of its equipment, maintenance costs can be very expensive.  Also, if a company has a difficult time scheduling maintenance on their equipment due to the equipment constantly being used on projects and jobs, it can prolong the required maintenance.  Prolong required maintenance can result in escalated maintenance costs because mechanical issues can become worse due to neglecting an effective maintenance schedule.  A company can be in a tough spot and forced to make the decision of “should we fix the equipment now or should we continue using the equipment and prolong the maintenance needed.”

When renting heavy equipment the cost of maintenance and the challenges with forgoing projects because of a need to fix equipment all go away.  This is especially beneficial when a company has come across and secured new projects and opportunities that they were not prepared for.  

The Cost of Maintenance

No Need for Capital Expense

Buying standard excavators and long-reach excavators, and other heavy equipment is expensive, especially for medium to smaller-sized companies.  When a company makes such a large purchase it typically has to be budgeted for.  Along with this, purchasing heavy equipment can limit the amount of money the company has available for other projects or strategic investments. With limited financial resources, it can also limit a company’s ability to take advantage of growth opportunities or fund new projects because they have all their money tied up in equipment purchases.  

Renting equipment helps to avoid capital expenditures, frees-up money for funding new projects, or allows for securing new growth opportunities.  Rather than becoming a capital expense, rental expenses can be categorized as operational expenses that avoid directly impacting the working capital of a business.  

No Capital Expense

Taxes and Equipment Depreciation

Renting provides greater flexibility than purchasing heavy equipment.  Renting equipment is a tax deduction, whereas purchasing equipment is taxed at a depreciated rate – sometimes over the lifetime of the machine, and other times the tax can only be depreciated in the first year it was purchased.  When renting equipment it is a tax deduction every time and it does not have to coincide with a specific tax year or depreciation schedule which makes it even more advantageous and simple.  

Equipment Depreciation and Taxes

Competitive Advantage

Renting instead of purchasing standard excavators and long reach excavator equipment, and other types of heavy-equipment increases flexibility and creates a greater probability of finishing projects on time if mechanical issues with the equipment arise. Another benefit is securing and starting new projects before the competition has a chance to do so.  This is especially true if the contracting company your business is working for has other upcoming projects or multiple projects going on simultaneously, all of which are easier to secure due to already having one foot in the door.   

Schedule More Projects

How HAWK Excavator Can Help

Considering all of the challenges a construction company faces daily, from project to project, it is critical that your operation be outfitted with the best excavation equipment available.  

HAWK Excavator is a Manufacturer of Long Reach Excavator Kits, RTK GPS Position Systems, Amphibious Undercarriages, and Modular Barges. We have decades of experience with heavy-duty excavator equipment to enhance and optimize excavation projects worldwide.

Top Product Upgrades for Excavators

All HAWK products are simple to install to your excavator to assist with a wide range of excavation, construction, and dredging projects.  

The top requested product is a conversion from standard to long reach.

For more on the value that HAWK Excavator can provide, Go To:  https://hawkexcavator.com/    

Optimize Your Excavator.