The construction equipment for hire niche has grown rapidly over the last decade and these enterprises have currently been established as secure partners for contractors that prefer hiring equipment such as excavators on a needed basis instead of purchasing these machines which deplete capital funds and disrupt cash flow. The driver behind the equipment for hire business is mainly attributed to the capital restrictions and logistics.
Renting equipment such as excavators and cranes for example eliminates ownership costs, maintenance costs, upgrade costs, storage costs and is seen as a cost-effective method to accomplish projects by contractors. Most equipment rental companies own a large variety of heavy machines and mostly are upgraded and feature the latest technologies that do not require excessively experienced machine operators as these latest models come with technological elements such as grade assist, autonomous mechanisms and load sensors that ensure even the least experienced operators achieve high accuracy when performing tasks.
The fact that a high end standard excavator for hire may be obtained for about $200 a day (without operator) and the fact that the machine is delivered and collected from a given project’s doorstep make it extremely cost effective for project managers to hire compared to purchasing these machines that ‘burn up’ thousands of dollars.
It is more feasible for the project managers to use the money to pay for materials in cash and secure significantly better discounts as suppliers afford good discounts to contractors who pay in cash. Apart from that, hiring these machines also leads to lean project management as all tasks that require to be performed are consolidated, meaning when these machines are hired, they are utilised optimally without too much downtime.
The reason as to why manufacturers of heavy machines support rental companies is based on the fact that these enterprises generally purchase large numbers of these machines as opposed to contractors buying one or two machines based on projects. The purchases of large quantities of such machines by these rental companies has increased demand for manufacturers who benefit from economy of scale while contractors and project managers benefit from the lower project costs by renting.
The entire value chain of the construction industry according Off Highway Research has improved tremendously due to the rise of heavy equipment rental companies not only due to the fact that they reduce cost for projects, but also due to the fact that they provide the latest machines which enhance productivity.
The construction industry’s efficiency level in general has improved tremendously over the last decade due to enhancement of accuracy/ precision, machines that are remotely accessible and data management systems that are built in. With the rising interest in electric powered machines, it is expected that these machines will eventually be deemed as ‘smart machines’ as manufacturers gradually integrate A.I technology into these machines.
