Rental Benefits vs Buying
Material handling equipment is an absolute necessity for modern businesses to stay competitive and increase worker productivity. Forklifts come in many varieties and have a range of capabilities and prices, but their fundamental purpose is to allow workers to move inventory quickly and efficiently. The issue for some, especially most small businesses, is the issue of whether to buy or rent the equipment.
Construction & Forestry Rental Benefits
Construction and Forestry equipment is too-often left to collect dust until it’s needed for a new project. Doing so leads to equipment depreciation. Renting can be a double benefit to construction and forestry companies because rental fees are often immediately deductible as business expenses as opposed to depreciated over a long period of time.
Instead of buying it, renting includes the opportunity to “upgrade” your equipment as you see fit, which gets around maintenance costs, and costly storage space. For many construction and forestry firms, renting instead of buying heavy equipment is a net benefit for the company, and gives managers the opportunity to try out construction equipment before making a purchase.
Since we maintain the unit, you avoid the expense of upkeep. If a piece of machinery breaks down, we will fix it, and if the repair will take an extended amount of time, we will usually exchange the broken unit with a different one.
What industries benefit the most from renting?
| Agriculture Automotive Construction Earth Moving Government |
Landscape Logging Military/Defense Mining Plumbing |
Recycling Retail Trucking Waste Warehouses |
Top Ten reasons to consider Renting:
- Saves money in many cases
- Caters to short-term equipment need
- Provides specialty performance
- Satisfies temporary production increases
- Fills in when regular machines need maintenance or fail
- Helps meet deadline crunches
- Expands machine inventory
- Increases overall capability when and where needed
- Eliminates responsibility of testing, maintenance, service
- Makes the project schedule easier to manage with on-demand resources
With a wide range of units suitable for nearly all projects, KMH has helped countless companies increase their ROI with our flexible rental programs.
Heavy Equipment Rental Benefits
Renting construction equipment has increased in popularity for a variety of reasons. A few key contributors to the growth of equipment rentals include the rising cost of purchasing equipment Here are some benefits that your company will see if you decide to begin renting construction equipment.
Avoid the Initial Purchase Cost
Purchasing brand new construction equipment is extremely expensive and can make a huge impact on how your company’s budget. Renting or leasing equipment avoids the upfront costs associated with purchasing, and allows businesses to better manage your financial resources.
Less Maintenance and Repair Costs
When you own equipment, you must consider the cost of maintenance and repair. Although maintenance and repair is still important for rental equipment, costs will be lowered compared to purchased equipment. With rentals, the time and labor costs associated with maintenance and repairs are lower and more manageable.
No More Market Fluctuation
The construction world is dynamic and many things influence the market. Renting equipment cushions your company from unpredictable downturns that may arise. Rather than committing to a piece of equipment, leasing allows for options that make it easier to ride the rise and fall of market forces.
No Depreciation Costs
When you own machinery, you incur considerable depreciation costs. Reselling equipment, and maintaining it requires quite a large investment on top of your upfront purchase. Although all companies operate differently, renting construction equipment avoids loses associated with depreciation.
Project-Specific Rentals
Typically, construction companies are balancing many projects at once. Renting specific pieces of equipment for particular projects eliminates any logistical delays.
Solve Storage Issues
Equipment that is not stored properly, or exposed to harsh weather condition may depreciate faster. You can negotiate with vendors or suppliers regarding how long you need a rental, and your company may not worry about long-term storage. This saves you time needed to plan out the logistics, as well as the cost of storage.
Transportation Logistics
Transportation can take a long time, affecting the productivity and efficiency of a project. Renting allows you to avoid this burden and provides a more reliable equipment option by keeping pieces onsite.
Let us give you all the information you need to run on any budget and still get the equipment you need!
Renting Heavy Equipment Advantages
Renting heavy equipment rather than buying offers quite a few major advantages that can be beneficial to companies of all sizes across different industries. Here are just a few advantages:
Convenience and Logistical Advantages to Renting Equipment
One the biggest categories of advantages that renting has over owning is in the added convenience that it brings and lower logistical demands that it requires.
No Maintenance
When a company rents heavy equipment it is the rental company, not them, that handles these maintenance needs. This frees up a considerable amount of time, labor, and overall hassle and stress, especially when whole fleets of equipment come into play.
No Storage
Most pieces of heavy equipment will begin to suffer over time if they are left outside and exposed to the elements. Warehouse space is often at a premium and storing large, heavy equipment may be eating into a company’s ability to store much-need products and materials.
Transportation Is Easier
Transporting heavy equipment, especially an entire fleet of it, can be very expensive, time-consuming, and logistically challenging. Renting equipment removes this burden since the equipment can be delivered to the worksite instead.
Operational Advantages to Renting Equipment
Supplement Capacity
A company may already have some equipment, but still find that in order to get the job done in a timely, efficient manner they need to ramp up their capabilities with additional pieces of equipment. It is much more cost effective to rent these temporary extra units than to purchase them outright for an isolated project.
Rent Before You Own
You can even try different brands and models for a more hands-on comparison. This allows your ultimate purchase to be much more informed and helps you set your expectations accordingly.
Service
If something goes wrong with the equipment, or you aren’t sure how to do something, they can either walk you through troubleshooting or swap out the problem unit with a different one.
Financial Advantages to Renting Equipment
There are times when it is more cost effective to own rather than rent; however, the following financial advantages to renting should definitely be taken into consideration before a decision is made.
Tax Deductions
Rental expenses are usually fully deductible to a company as a business expense. Capital costs will instead be amortized or depreciated over the life of the equipment.
No Depreciation
A drawback to purchasing just about any type of equipment is that it will immediately begin to depreciate in value, lowering the amount you would receive if you resold the equipment later.
Better Cash Flow
Buying new heavy equipment is expensive and in all but very large companies such a purchase is likely to have a significant impact on cash flow.
Our award-winning team takes pride in helping you meet the challenges of your dynamic operation. Contact us today to get the right equipment rental for you. Contact your local KMH Representative at 888-564-7978 or fill-out the form below…
Cost-Effective Solutions – Rental & Leasing
When you rent instead of buy the savings are significant. Renting lowers maintenance costs, ensures reliable parts and service from us and we offer financing for you as well. Needing to replace or find new equipment can eat up a large portion of your budget. At KMH we offer financing to not only lower your operations cost per unit shipped, but also keep you at maximum up time. Equipment is a large investment to make and unfortunately, sometimes you make large equipment purchases only to find out the particular gear doesn’t fit your needs. We maintain a large fleet of rental units ready for quick delivery!
Renting or leasing creates a cost-effective solutions in the case you don’t want to invest the capital in new equipment or simply don’t have it. Also, if you only plan on using the equipment for a limited amount of time or just using it for a small project, renting or leasing the equipment will work in your favor. Keep in mind that renting is generally preferable when using equipment for short periods of time or if you want to avoid risks associated with breakdowns and maintenance. Additionally, renting equipment usually ensures access to the latest models and technologies due to KMH’s continual investments in our fleets.
Every business wants to lower their cost per unit shipped, and that’s our goal for you. Knowing the parameters and needs of our customers and having a fleet of equipment from forklifts to boom lifts to construction equipment allows us to be available 24/7 to meet your growing and changing needs.
Additionally, KMH maintains the unit, and you avoid the expense of upkeep. If a piece of machinery breaks down, KMH will fix it, and if the repair will take an extended amount of time, KMH will exchange the broken unit with a different one.
To learn more about our Rental Program visit our links below. We offer short term, long term and rent to own programs to fit your needs:
Equipment Rentals:
http://www.kmhsystems.com/service-solutions/equipment-rentals/
Heavy Equipment Rentals:
http://tuffequipco.com/equipment-rentals/
Call 888-564-7978 for all rental pricing & availability or please fill-out the form below!
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5 Ways To Cut Your Costs Today
Every day offers an opportunity to lower your cost per unit shipped. Getting focused in that direction and making it happen will significantly impact this.
Listed below are 5 simple ways a phone call to KMH for either our operational audits, service calls, or equipment requests can save you money TODAY.
1. Lighting
Flipping the switch on savings is easier than you think. If you partner with KMH, we are able to pass on the energy management margins to you. We have been saving companies millions of dollars annually! KMH’s lighting Division keeps money in your account. We offer the ability for you to now see what you’re doing as well as where you’re saving. To top it off, KMH lighting surveys are FREE!
2. Trade in Credit
Do you have used or old equipment lying around, collecting dust, not really getting the job done? If so, you should think about this… Used equipment can be money in your bank account; you just need to decide when to replace it. Utilizing the same old and run down equipment can be inefficient, while also harmful and dangerous to your employees. KMH can evaluate how to maximize your investment in industrial equipment (both indoor & outdoor) as well as your parts and service needs to keep you rolling at an affordable price.
3. Prevention
What is prevention? Prevention is the action of stopping something from happening or arising. Fleet management is exactly this… it saves time and prevents problems from occurring. Here at KMH, we pride ourselves on telemetry and fleet management hardware & software that contain features such as; email alerts, utilization reports, operator checklists, and even PM interval alerts. If you want to stay ahead of any problems, it’s much easier when you simply prevent them from happening. By implementing these state-of-the-art tools for your forklift fleet and team, you’ll be guaranteed to save TIME & MONEY!
4. Rentals
Are your finances, bills, and long term contract agreements slowing you down? Here is an opportunity for you to gain more freedom financially and enjoy life a little more. KMH maintains a rental ready fleet for both short and long term needs. Whatever works better for you, we adjust accordingly! Sometimes all you will need is a rental, so in turn, we evaluate your goals and can recommend the best solution when and while you need it.
5. Parts and Service
Affordable and reliable – care and efficiency are qualities we pride ourselves on. Our team of certified technicians ensures maximum fleet up-time… that’s your money and your time, and we want to ensure you save it! With over a million dollar parts inventory and 50+ service technicians, we are road ready to stay true to our values all while helping you SAVE BIG!