When it comes to construction and working on a new development, it is inevitable that you will require several types of equipment. The only problem is, for smaller construction companies, it may be too expensive to purchase all the equipment you need. Additionally, you may only need a piece of equipment for that specific project. So, what do you do? Well, over the past few years, one trend has seen exponential growth. More and more companies are starting to opt for equipment hire in Cape Town, rather than purchasing. (Info source https://buildequip.co.za/)
The construction industry has seen exponential growth in the cost of equipment, as well as the unpredictability of the market. Therefore, companies have started seeking ways to go about business in the most cost-effective manner. Equipment hire not only allows construction companies to cut costs on having to purchase these assets, but also allows said companies to run more financially stable companies.
There are several benefits and reasons why more companies are opting for equipment hire in Cape Town, these include the following:
Maintenance and repair costs are significantly reduced
When you purchase and own equipment, you need to consider the costs involved in the maintenance and repair of your equipment. Whereas, with equipment hire, the costs will be considerably lower. While there are still maintenance and repair costs involved in the hiring of equipment, leasing removes the stress of having to worry about the lifecycle and upkeep of your equipment.
Companies avoid depreciation costs
Anyone that has bought their own equipment will inevitably incur depreciation costs. The future retail and maintenance of said equipment will require a significant financial investment. However, to avoid the extra costs, companies rather opt for equipment hire, as the only costs incurred then are for rental and possible repair.
Equipment storage is no longer an issue
When it comes to owning your own equipment, the costs never seem to end. Not only are you paying for the initial purchase, repair and maintenance, but you also have to pay to store the equipment safely when it is not being used. If the equipment is not stored correctly, it can lead to fast deterioration and depreciation of your equipment. Whereas, if you were to rather opt for equipment hire, you can negotiate with the hiring company and plan logistics on how to best store the equipment while you are using it.
Some projects require specific rentals
As mentioned previously, if you are working on a project that requires a specific tool or piece of equipment that you may not use again in the near future, there is no point in purchasing it. In cases such as these, equipment hire would be the most financially feasible option.
Waiting times and productivity losses are reduced
Finally, if your own equipment had to break or stall, not only will your productivity be halted, but it would also eat into deadline compliance. However, with equipment hire, you can rest assured that the equipment you require will be on your construction site by the agreed upon day.