The equipment hiring industry in Australia is a growing one with two main consumer groups. The first group consists of mainly government bodies and large private enterprises. The second group is made up of smaller consumers. The first group usually hires equipment on a regular basis, while the other group is less consistent in equipment hire.
What exactly is hired?
There is a wide range of equipment hired in various industries, such as:
- air compressors
- storage containers
- skid steer loaders
- lighting towers
- excavators and graders
- cranes and forklifts
When to hire
Do you have some big contracts coming in the near future? Or do you want to expand your company's capabilities? And are you wondering whether to hire equipment or purchase it? Well, there are a number of factors that will influence your decision to hire or purchase equipment, such as:
Current financial status: You should consider whether you're in a good position (currently) to buy or rent equipment. Bear in mind that the costs of buying equipment immediately are often less than the costs of equipment hire. However, the long-term costs of hiring equipment, especially equipment that is not being fully utilized, are often more than purchasing.
The cost of hiring equipment versus the cost of ownership: Owning equipment will often come with operating and maintenance costs. You may also have to pay other fees such as insurance and government licensing. On the other hand, renting equipment will often be an all-inclusive cost. Hence, you need to estimate the overall costs involved in equipment hiring versus equipment purchase. You should also consider the fact that the rental company has to also make profit, and this is marked up in the rental cost.
Availably and use of the equipment: One of the biggest advantages of purchasing your own equipment is that it is available for you to use at any time of day or night. Therefore, you can easily adjust to changes that may unexpectedly come up during a project. For instance, if the project schedule is prolonged, you will not have to worry about booking the equipment from the rental company for some additional days. You might also want to consider a 24-hour rental company.
Equipment hire versus purchase can be at times be a difficult decision. However, the interests of your business and its goals ought to play a huge role when you are making this decision.Share