Managing Construction Equipment Needs Effectively

Posted By : Aubrey Mead , on May, 2016

 

It can be difficult to manage construction equipment needs effectively on a limited budget. There are certain core pieces of equipment that will need to be purchased in order to save money in the long run. Money for those is usually included in initial start-up costs. The business can get started and take on enough jobs to meet expenses in the beginning. Once more equipment is needed, there are options that can keep costs down while expanding the ability to accept different types of jobs, and bid on larger contracts. If there is enough capital, purchasing the needed equipment may be the most cost-effective answer. That depends on the amount of the investment, and the frequency with which the equipment will be used.

Alternatives to purchasing include leasing equipment or renting it. Both have advantages. Leasing equipment is less expensive than purchasing because there are no taxes on leased equipment, like there is on purchased equipment. The lease payments are considered an operational expense, rather than a payment on an asset. It also does not make a difference when applying for a business loan. Leasing is also better than renting for long term use. Monthly payments may be lower than the monthly rental on a continual basis. New and used purchases, as well as leases, can be completed at various companies, like the Slaymaker Group, that specialize in construction machinery, equipment, and vehicles. Renting is cost-effective on a short term basis. It provides the company access to equipment for the duration of a particular project. Construction companies can rent machinery for a day, a week, or a month. Some rental companies also offer longer term rental agreements for extended projects, or large contracts.

Another reason to rent equipment or machinery is to help owners decide which manufacturer or model of machinery they prefer. Renting a John Deere backhoe from Slaymaker Group, for example, for one month, and then renting a Genie model the next month gives owners an idea of how each machine handles. Business owners can also try out different sized equipment, different attachments, and a variety of trailers and generators as well. When the business is in a position to make a purchase, owners will know which equipment will best suit the needs, goals, and budgets of the business. Owners and managers can click here for more details on options, and learn how to best meet equipment and machinery needs effectively.

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