Beginner's Guide to Construction Equipment Rental

 

According to a survey conducted on more than 70,000 business owners, CEOs, managers, and procurement professionals, it has been discovered that the practice of heavy rental equipment is increasing across the nation. Over the recent past, rentals for compact truck loaders increased by 925%, wheel loader rentals proliferated 273%, and forklift rentals multiplied by 90%. 

Similar to every new trend, there is skepticism regarding renting construction equipment. Is it being more cost-effective to rent over purchase? Is renting construction equipment suitable for your rental equipment company? 

 

Keep reading to know if construction equipment rental is ideal for you and your firm. 

There is one clear driver for the expansion of construction heavy equipment rental: the “bottom line.” Being a project-based industry, construction equipment is too often left to accumulate dust until it’s required for a new project. Normally, doing so only causes equipment depreciation. So, renting can thus be a double bonus for construction companies; rental fees are mostly considered to be immediately deductible as business expenses in comparison to depreciated over a long period. So, in the short-term, construction businesses are directly benefitted. 

If you are searching on Google, rental equipment near me, then remember that the raw cost of renting can be managed better in the short-term too.  

 

Let’s analyze some particular numbers while looking at industry averages and prices from a major heavy construction equipment rental agency: 

 

• Mid-range excavators weighing 15 to 20 tons usually range in price from $100,000 to $200,000 new (and can go up to $500,000 for larger customized models). The cost of renting an excavator average $571 each day, $1,233 each week, and $3,433 for almost a month. 

 

• A new 6,000-pound forklift is valued between $11,000 and $13,000. Few construction equipment rentals near me rent out forklifts for $196 each day, $547 each week, and $1,640 for almost a month. 

 

• Do you require a skid loader? A 2,000-pound Bobcat skid loader costs around $20,000-$30,000. Another company rents out the same skid loaders for $379 each day, $927 each week, and $2,367 for almost a month. 

 

• Scissor lifts cost around $22,000 for new. But if you choose for renting, the same lift cuts down to $99 each day, $287 each week, and $399 for almost a month. 

 

 Big Rentz is the most dominant player in the market. Though it isn’t the only major player in the construction rental space. Rather, United Rentals dominates the market too, closely followed by Sunbelt and Hertz. 

 

Innovative technology is repeatedly challenging these leading players to a large extent. For example, Getable made waves during the last decade as an innovative free iPad app that matches construction contractors seeking to rent and those aspiring to rent out their equipment. 

With software and AI engulfing the world, it seems no industry is secured. One vertical in particular that seems to be attracting more attention from startups is real estate, where we’re witnessing new apps pop up to make building things much simpler and more efficient.  

There are many other benefits of renting construction equipment rather than purchasing it, including the chance to “upgrade” your equipment as you find suitable, which gets around maintenance costs, and foregoing costly storage space. At the end of the day, for several construction firms, renting rather than purchasing heavy equipment is an advantage for the company. 

 

The conclusion is that renting gives construction managers the chance to try out construction equipment before purchasing if they consider that route. 

There are many situations where it makes more sense to purchase your equipment rather than rent. If you are applying your equipment for most working days in the foreseeable future, and you possess the storage space for it and the capacity to keep it maintained, owning will probably be cost-effective in the long run instead of renting.