Landscape Architect Articles

The Rental Report04-07-16 | News

The Rental Report
Rent or Buy?

The market research company Technavio recently stated that due in large part to the rapid growth of the construction industry, the equipment rental market is forecast to have a compounded annual growth rate of more than seven percent by 2019; a number the article termed "healthy."

Rent or Buy?
How often a piece of equipment is used is the obvious number one factor when deciding between renting or buying, but many others come into play. These include:
• The costs of maintaining and storing an owned piece of equipment
• The amount of business that might be lost if that equipment is not readily available
• The potential for an owned piece of equipment to be rented to others when not in use
• The possibility of that equipment being used for purposes other than its primary function

• Transportation distances "?u renting equipment close to job sites might make more sense
• Tax considerations "?u rental costs can be fully deducted in a given year; purchase costs are amortized

Advantages of renting include:
• Trying out different brands before buying
• Gauging effectiveness of similar types of equipment
• Being able to bid on projects much larger than usual for your company

Many manufacturers design and build certain models of their equipment specifically for the rental market. Features added include some that benefit the rental house but others that benefit the renter, such as more user-friendly operation and damage safeguards. This makes renting, especially an unfamiliar piece of equipment, a less daunting proposition. Check with your local rental outlets to see if they offer these types of models.

Compact Power Equipment Rental, which provides mini-excavators, skid steers, mini skid steers, backhoes, trenchers and more for rent at Home Depot outlets, has a new mobile app that allows contractors to find the nearest store that has the equipment they need, and seamlessly rent that equipment. The app is available from Apple and Google Play.

As seen in LC/DBM magazine, April 2016.