Renting Heavy Equipment’s - The Economy of Scale Behind It

Your company is expanding, and you just need to replace your current heavy equipment. Evaluating your company’s capabilities and future planning buying a new one is a disadvantage to your business planning and paying for an equipment which you may use only a few times in a year and rest of the time it sits in a garage does not make any sense. So what do you do next? The answer to this is renting the equipment.

The advantages of renting of an equipment is that, the initial investment is low, access to broader range of equipment at all times, latest equipment usually offered, maintenance insurance etc handled by another party. The rental market is competitive and incites the rental company to offer recent- generation and up to date technology equipments. Another benefit is that many rental contracts make provision for maintenance including repairs, spare parts, and record keeping. Thereby maintenance cost can be avoided.

Some projects require specialized equipment’s, and buying one for that single project is not economically feasible. On the other hand, rental services can let you expand your special projects while staying profitable. You can try the equipment before renting it and also avoid huge investments in case the equipment turns out to be unsuitable.

When it comes to cost, by renting your costs are almost immediately deductible as a business expense and the best part is your financial department will appreciate the fact that rental expenses are not considered to be a balance sheet liability!

Every machine has a certain height and weight runs on diesel or electric power and can be used for indoor or outdoor applications. Each project requires specific equipments. So it is always viable to hire than to buy equipment.

As the construction market is changeable and affected by many factors that are outside the control of the construction companies and the country, it makes sense to hire equipment which can then be returned if the market conditions deteriorate and can be added to if the market conditions improve. This provides a flexible solution to the construction companies to cope up with the ups and downs in the market.

When expensive equipment is bought and then after it has become of no use or you want up to date equipment and you need to sell it, you will never get back exactly what you paid for buying it and the value of the piece of machinery drops considerably. For this hiring is the natural solution.

After a quietude period in the year 2016 in GCC, the property markets are charting a course to recovery and it appears construction market will shift gears in the months to come. Hence the equipment rental segment is on a high in the Middle East driven by demand from the local constructors and FM sectors. With its architectural specialties, every site in the UAE requires a different kind of machine. Any given machine might be suitable for three out of thirty sites, so it makes more sense to rent than buy.

UAE has the best leading rental services and companies, to find out more on the same follow the link