Plant Equipment Hire-All That You Need to Know
Plant equipment hire, also known as plant hires or equipment rental in several countries is actually a service industry that provides machinery, equipment and tools of various kinds and different sizes to the users. The final users or the customers of the industry are mostly construction contractors, but the services are also available to industries or individual customers. The tools are made available for a limited period of time and can be of various kinds such as power generation tools, hand held tools or earth moving and powered access tools.
The plant equipment hire industry is relatively new and has its own pros and cons.
Pros of renting equipment against buying it are:
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- Low initial investment: While renting equipment means that there will be lower initial investment, buying your own equipment will be a much cheaper and a better deal over the long-term period.
- Access wide range of equipments: When renting equipment is on your mind, you can have a direct access to a wide range of equipments at any point of time. Buying equipment allows you to get a return on the investment that you have made even when you are not using the equipment.
- Get the latest equipment: The choice of renting equipment often gets you the latest equipment available. Buying equipment gives you more flexibility and the equipment is right there with you whenever you need it.
- There are no formalities: Renting equipment comes without any kind of formalities such as maintenance or insurance since, all this is handled by the owner or the company. With equipment buying, you can enjoy several tax advantages and also, there is less downtime.
Factors to consider when renting equipments
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The option of plant equipment hire is certainly not new but it has become extremely popular in the last few years due to the several advantages that it holds. It is, definitely, a cheaper option to rent equipment plus, you do not have to take care of other additional expenditures as well such as storage, maintenance, insurance and transportation.
But before you jump into the decision of renting equipment, do not forget to consider these factors:
- The number of projects and their frequency: It is important to check the consistency of projects and their duration. There is a complete advantage of plant equipment hire only if the projects are short-term and there are enough time gaps between different projects. In such a condition, it makes more sense to hire equipment than buy one that may just be left useless for a long period of time.
- Comparing cost of buying against cost of renting: Before finalizing the decision of renting the equipment, estimate its cost and compare it against the cost of renting the equipment. While buying will include other expenses such as insurance, maintenance, operating costs and government licensing, rental cost will include the cost of transporting the equipment. Consider your financial condition and decide what you need to do.
- Availability of equipment: Before deciding the option of plant equipment hire, it is also important to consider if the equipment will continue to be available with the rental company every time you may need it. This is where owning your own equipment gives you the power and control over your business. Owning your own equipment also makes your business a stable and trustworthy one for your clients and they know that they can count on you for their future projects as well.
While ownership of equipment pays off in the long-term, renting the equipment is a better and cheaper option, especially, when the resources are limited.
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