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For a lot of businesses, being flexible and financially secure are high priorities. We’re hesitant to invest in new machinery, even if requirements in areas such as sustainability dictate say we need to. In cases like this, the question arises if it’s smarter to buy or to (continue to) rent? Boels has listed all the pros and cons for you.
Buying seems pretty appealing. Almost nine out of ten people working in construction (87%) say that their employer does just that: buy the tools and machinery for projects. We have to admit, owning a beautiful machine in your company colours is pretty cool. Until the bills start coming in. After a few years, you start paying more for maintenance and repairs, while your accountant spends time working out the annual depreciation and insurance costs. That’s when you start realising the true value of rental. A little over three in ten construction employees (31%)* say that their organisation hires the machinery and tools they use. And they do this for a number of reasons, which we’ll briefly explain below.
1 More cost-effective
Renting equipment and machines offers financial stability. You pay a fixed amount, so you know exactly where you stand. What’s more, you don’t have to fork out a big investment up front or pay for maintenance while the equipment doesn’t need to be depreciated. This enables you to put the money to good use elsewhere. Another factor is the uncertainty about new developments and innovations. Working with battery-powered and hydrogen-powered machines is often still uncharted territory for many businesses: where do you start and what will it cost exactly? For some entrepreneurs, buying is simply too expensive. One thing is sure, though, every business wants to keep moving forward. This is where short-term options like leasing and renting offer a secure, cost-effective alternative.
chooses renting machines
Three in ten workers don’t get the job done because they don’t have access to enough or good-quality machines
2 Greater flexibility and cost savings
Renting gives you access to professional equipment at the right time and place. Plus you are able to respond to unforeseen circumstances a lot quicker. It’s a form of flexibility that can save you a lot of money, and headaches. And that’s a good thing: almost three in ten people who work in construction (28%) say they sometimes can’t get a job done because they don’t have access to enough or to good-quality machines. The flexibility also applies to projects that (temporarily) need less equipment. All too often, expensive machines stand by idly for short – or even longer – periods. This doesn’t just reduce the company’s ability to adapt quickly to changes, it generally also adds up considerably in maintenance costs.
3 New and modern equipment
The equipment of rental companies is used quite intensively, but at the same time it is well maintained and regularly replaced. With an average age of 46 months, the Boels fleet is one of the most modern in the rental industry. This means that, as the company who is renting, you are assured of equipment that works well and meets the latest (environmental) standards and certifications — which is a lot harder to achieve when owning your own machinery.
electric powered machines
4 Faster compliance with sustainability standards
Using zero-emission equipment is an important tool in the reduction of carbon emissions. Due to high purchase costs and perhaps fear of the unknown, zero-emission machines aren’t yet a viable option for many companies. This is also where renting offers the solution. The Boels fleet of today has a ‘green’ alternative for almost every ‘conventional’ combustion engine, from hybrid power to fully electrified battery-powered machines. By renting first, you get to practice how it works, as it were. It’s definitely a smart move that prepares you well for the future.
5 Delivery and collection part of the deal
Delivering and collecting rental equipment is generally arranged by the rental company, which means businesses don’t have to worry about those hassles. You simply let your rental partner know what you need, where you need it and for how long, so you can keep your project moving. This is particularly interesting for larger companies with projects at several construction sites, as they don’t have to buy a truck and semi-trailer and employ their own drivers.
6 Free expert advice
It’s not simply a matter of renting equipment at Boels, you also share in the available knowledge and can count on expert advice that is tailored to your project and operation. Boels provides support through its specialist depots in concrete works, construction equipment, climate control, and other areas. That means you get free specialist knowledge and expert advice with your rental equipment.
Calculate your financial advantage
Renting gives you financial benefits in the short term. And for the long term, too, it can be interesting to compare the actual costs of rental with ownership, for instance in the use and maintenance of machines, and the flexibility of the company. You can check this yourself with the European Rental Association’s handy free tool: the TCO Calculator.
*Data based on Dutch research