Contractors and engineering firms have lots to consider and evaluate in order to stay ahead of the competition. One of these is the determination of whether it’ll be better for them to rent or to buy welding equipment. They need to constantly reevaluate and assess the best use of their capital based on their welding needs.
It’s typically a lot more cost-effective to rent a piece of equipment if it’s not being used at least 60-70% of the time. When it’s used for longer, contractors may be better off purchasing or leasing the equipment outright. There may, for instance, be significant cost deductions for not being able to use equipment right away. Service trucks may need welding or generator power for field repair. Without an immediate source, the equipment is forced into idleness and the job schedule can become disrupted.
A contractor may experience a sudden need for a larger number of welding equipment. Building a large processing plant or required service of r a scheduled plant shutdown can require the need for hundreds of arcs more than a company has prepared for. In this instance, it may be more practical to rent welding machines than to find the capital to invest in buying this much equipment.
What are the technological requirements of welding equipment? Some jobs can rely on simple equipment. Still, others need complex ones with premium multi-process arcs, lightweight portability, and strong generator power. As most welding supply and rental places understand the importance and necessity of the latest welding technology, the machines they provide normally come with plasma cutters and multi-arc inverter racks. Customers will be able to experience shorter lead times and improved welding qualities.
Younger welders entering the workforce are exposed to newer forms of technology from their technical schools and training centres. The younger and more tech-savvy generation is better suited to tools equipped with advanced technologies.
What is the total cost of equipment management? There are other financial factors that can affect the decision to rent or buy equipment. These include costs of transportation like truck, driver, fuel, and loading time expenses.
Renting equipment can be filed under job cost. Lost profits from rental equipment can become negligible if the total value of equipment rental is much lower than the total cost of a large project. On the other hand, if the job is relatively small and equipment costs take up a large portion of it, then owning the equipment will be more advantageous.
Furthermore, managers can do away with finding an adequate amount of storage space for the equipment. This means fewer expenses as part of building ownership. There’s also an additional tax incentive that comes with equipment rentals. They don’t come with any associated licensing fees or property taxes.
Reducing equipment costs can help contractors set themselves apart from the competition and increase productivity and efficiency of their projects. It can be a lot more cost-effective to go for rental purchases or lease options, depending on the particular requirements of a job.