Posted on: July 30, 2019
Without the proper tools it is nearly impossible for construction workers to complete a project. Having the necessary equipment on hand is essential for worker productivity, efficiency, and is overall imperative to the success of any construction company or contractor. Knowing what equipment is needed to complete any given project can be challenging in and of itself. When it comes to deciding to lease or buy construction equipment, well, that offers an additional level of difficulty.
The options to buy and/or lease construction equipment is a decision that industry professionals must make daily. There are no right or wrong choices to be made. Each choice has their fair share of advantages and disadvantages. Ultimately, the decision comes down to figuring out which option is best suited for your company. No two businesses are alike when it comes to their operations. What works for your competitor may not work for you. What works for your company now may not work several months from now.
Simply speaking from a position of convenience and efficiency, it is smart for a company to purchase construction equipment if they have the money. Purchasing equipment ensures that it will be available whenever and wherever your projects take you. If, however, your firm does not have the financing available to purchase a machine, it may be just as cost-effective to lease the machinery. Leasing machinery often means that you can forego costs associated with storing and transporting the equipment as well as any routine maintenance that may arise.
One benefit from buying the equipment is that the individuals who will be operating the machinery can become familiar with and master the specific machine. With leasing equipment, operators often have to re-learn the different quirks of each machine they get which ultimately eats away at productivity and the company’s bottom line.
When deciding whether to buy or lease equipment it is important to consider the company’s schedule of jobs and workload. For companies whose workload is less constant and more sporadic, they may consider leasing their equipment. Leasing a machine for a specific job and timeline is often much cheaper then purchase a brand-new piece of equipment. The one downside to this however, is that your construction company may have to wait for the equipment to become available. This can potentially hinder your ability to perform jobs and meet deadlines. Losing business and customers because your company lacks the necessary tools and equipment to complete a project will not bode well for your reputation or chance at repeat business. Doing research and finding a reputable company to lease from will help lessen your chances of this happening.
Choosing to buy or lease equipment is an important decision which should not be made lightly. Weigh the pros and cons of each option, look over your company’s finances, and determine the firm’s workload before ultimately making the final decision. Whatever your firm decides, just know, there is no right or wrong choice.