If you are a contractor and need to use heavy haul equipment such as cranes, you will have to decide between renting, leasing and purchasing. If you only need cranes for occasional work, you may be better off renting or leasing the equipment. Here are key reasons why crane rentals make more sense for certain contractor businesses.
Cutting Long-Term Expenses
The average cost of a crane ranges from $15,000 to $20,000. However, high-end tower cranes can cost over $300,000, while link-belt cranes run more than $500,000. If you will use the crane frequently, it will pay for itself over time, but if not, it becomes a loss leader with diminishing returns for your company. Crane rentals can therefore be much more affordable not only in the short term but in the long term as well.
Decision Factors for Crane Rentals
The number one factor in deciding whether you should buy, rent, or lease heavy haul equipment is your current financial condition. You don't want to spend your last dime on an expensive machine if it will take you years to recoup the money. Another consideration is whether or not you can afford to go in debt if you borrow the money. If you need to purchase a crane, you may be able to find a better price if you shop for used equipment.
But if you don't have the upfront capital or a practical financing solution, crane rentals present a much more attractive alternative. The cost of crane ownership doesn't end with a purchase. It includes maintenance over many years, insurance, licensing, fuel and storage. Another major concern is how frequently you use the crane. If you are working on a variety of projects that use various machines, it's often better to rent specific cranes as you need them, unless you have the ability to purchase multipurpose machines.
Equipment Variety and Flexibility
Crane rentals give you access to a wide range of machines, which are maintained by the vendor you rent from. The primary advantage to owning a crane is that you have continuous access to the machine, creating more flexibility for your business. But if work is sporadic or seasonal, you will likely save money by renting or leasing. You may also want to check with your financial advisor to review possible tax advantages.
Another advantage to renting or leasing is that the equipment is sometimes newer, allowing you to try out different brands and models. This can expand your knowledge on cranes, which may help you make a more informed decision when you eventually make a purchase. Furthermore, renting or leasing means you won't have to worry if the equipment breaks down, as the owner will service it and provide a replacement.
Crane rentals allow you to focus on specific projects instead of worrying about whether a crane purchase will have a return on investment in the long run. For some contractors, especially smaller companies, renting and leasing are more economical options than purchasing. For more information on crane rentals, contact Southwest Industrial Rigging at 602.256.7161.