Freddie Horacio, Negosentro | The increasing constructional works across the globe has enhanced the need for technologically advanced equipment. On the primary level of any construction, the most important equipment which is required is the earthmoving equipment. The concept of hiring or getting earthmoving equipment on a lease has emerged with the extensive need for the limited period; requirement of these equipments is a lucrative deal for many construction units. In many parts of the world the concept of earthmoving equipment hire or equipment hire has been high in demand like in UK. As per a global study almost 80% of the equipment sold in UK are used for rental purposes.
Driving Factors behind Equipment Hire
Though there are many benefits of hiring such expensive equipment for lease or hiring them for limited period, there are some essential driving factors which influence construction houses and companies to hire these equipments rather than buying.
The growth of construction industry has been steeply vertical in the past few years. The huge demand for construction has lead to ready need of advanced and high-end pieces of equipment which are undoubtedly expensive. However, construction companies have found it way more beneficial to access equipment hiring rather buying which can save them a huge amount of expenditure.
Besides other industries like archaeological works, mining industries, electronic works digging earth for wiring also require the earthmoving equipment. However, all these industries effectively benefit from hiring equipment at a much lower rent compared to buying these pieces of heavy duty equipment.
- Hiring essentially saves a company from the trouble of obsolescence
- It can allow up to 100% opportunity of financing
- You can seek for an advanced and a high-end technology at any time
- Enables you to direct your cash flow and budget in other useful needs
- You can even benefit from tax advantages on leased equipments which have rather low tax duties
Notable Advantages of Hiring Earthmoving Equipments
- Hiring effectively reduces the amount of direct investment from the budget. Besides, the earthmoving equipment that come in high price range; therefore, investing such a huge amount becomes a tough decision for many construction units, co-operatives and mining units. Moreover, when these can easily be availed at low price for required period, most industries prefer hiring rather than buying. This helps them manage their budget.
- Moreover, hiring high end bulky equipment releases industries from maintenance, servicing and storage liabilities. Since maintenance and servicing of such technologically advanced equipment can take a toll on company’s finance, companies often prefer hiring equipment with no maintenance and servicing headaches.
- Equipment and commodities depreciate after they are bought. As the equipment gets old, their resale value also depreciates commendably, which means your investment sinks with every passing year. So, if you want to upgrade your equipment with a rather advanced one, the resale value you get from the equipment is highly dissatisfactory.
- It does not affect you financially even if your business droops down and your investment does not pay you off. Hiring requires comparatively much less investment, and you can always terminate the lease on provided terms if your business does not work out.
As per the need of your project or type of digging work, the type of earthmoving equipment can vary in size, technology, capacity, power consumption etc. With the benefit of earthmoving equipment hire you can accordingly modulate your hiring criteria and look for appropriate equipment as per your need. Thus, you do not need to invest havoc amount of your available finance for an all new configuration of earthmoving equipment. You have the complete freedom of deciding your equipment as per requirement, budget and tenure of lease.