In today’s fast-paced, high-tech world, it seems like every business is looking for ways to cut costs and increase revenue. In the case of a construction company, this can be as easy as renting a few Wheel wash stations or water browsers. As such, it’s important that you have an understanding of the costs associated with owning your own construction machinery in order to make an informed decision about which option is best for your company. Let’s take a look at both sides of the coin and see which one makes more sense for you.
Your initial investment will be high.
Construction equipment is an expensive investment. Depending on the type of machines you plan to use, the initial price tag can be in the thousands of pounds. In other cases, you’re looking at tens of thousands of pounds for a single piece of equipment. This cost must be factored into your business decision-making when looking to purchase your own equipment. Will you lease instead? Is there a way to get some of those costs down? We’ll cover that below. Once you know the cost of ownership, you can make a more informed decision about which option is best for your company.
Maintenance and insurance will be your responsibility
As with any type of machinery, maintenance is important. Over time, engines will begin to break down and parts will start to wear out. This can be a costly and time-consuming process if you don’t know what you’re doing. To avoid this, you will need a qualified mechanic who can service your equipment on a regular basis. If this is not an option for your company, then you will have to have all of the repairs done by someone else. Over time, these repairs will add up and become a significant portion of your overall costs. If your construction machinery is damaged, you will have to obtain a quote for repairing it. The costs associated with this type of damage are not covered by your insurance.
Equipment requires storage space.
One of the biggest costs associated with ownership of your own construction equipment is the need for storage space. This is especially true for heavy-duty equipment such as diggers, cranes, and trucks. As such, it’s important that you think about where you will be storing these machines. If you’re looking at leasing the equipment, there will be a storage space or two included in the monthly lease cost.
You will not have the possibility of upgrading your equipment when it becomes dated.
One of the perks of renting equipment is that it doesn’t have to be the latest and greatest. As such, you can purchase equipment that is decades old. This is great if you know that you will be using it for a few years and not upgrading to newer pieces of machinery. However, if you have an eye on the future and you know that technology is constantly changing, then you’ll want to hold off on purchasing older equipment. When you buy your own construction equipment, you are stuck with the technology that was installed on the machines. This can make upgrading your machinery extremely costly down the line.