Do you have an industrial project, or are you planning to start one? It can only work if you have the right tools and equipment. From motors to forklifts, you need the right infrastructure, but should you hire or buy? The truth is that it depends on the circumstances. So, keep reading as we demonstrate key considerations to help you make the big decision.

How Regularly Will the Tools Be Used?

Heavy-duty specialist tools and equipment can cost a lot of money to purchase when new. Think of equipment such as a mining dumper truck, which can cost up to $10 million. If you only need the equipment for a few hours or days every month, can you really afford to spend the high amount?

One thing we must appreciate at this point is that predicting the time that industrial equipment will be used can be pretty difficult. This is true for most industrial projects, especially those that can be delayed by unexpected occurrences. When you need to do more work for longer, renting the equipment can rapidly push up the bill. So, you might want to work with an expert who understands the nature of the project well to determine the time that machines will be used. For example, when do you need to use a loader, excavator, compaction equipment, mortal mixers, or new trucks for your fleet?

Available Finances

If you have capital-related issues, it will be a good idea to consider renting industrial tools as opposed to buying them. When getting started, most companies are faced with cash flow challenges, and directing the limited resources to rental is easier and can help raise funds to ultimately buy your own tools

For larger industrial facilities, the way they look at things when it comes to machinery is a little different compared to small firms. Since they have more resources and experience, the decision to buy or rent is based on a combination of factors, such as taxation, insurance, time spent on asset administration, and depreciation. They are also able to negotiate for longer guarantees on maintenance and replacement in the case of a breakdown. This means that it is possible to cut the cost of maintenance by a significant margin, especially during the warranty period.

Getting Ready to take on More Jobs Right Away

One critical factor that investors and managers often overlook is the cost associated with missed opportunities. When a tender goes through faster than expected or requires you to demonstrate preparedness for a specific task, thoughts of rushing to the market to buy new tools can result in delays and cancellations. This is why a contractor with ready equipment and “armed” for the job might be a better option. Renting equipment can make it easy for you to secure short lead-time projects and boost the enterprise's revenue.

Service and Maintenance

One of the core attributes of buying industrial tools is that you will need to meet the cost of service and maintenance. If you are dealing with machining and heavy-duty pumps, among others, the cost of maintenance can often be so high. To keep the machines in top condition, you might even need to run a fully-fledged maintenance department, further pushing the cost of operations up.

To cut the cost of maintenance and service, it might be a good idea to consider renting. Most rental companies are run by professionals with years of experience. They always have their engineers on standby and can easily customize the services to your needs. Things do not stop there. The rental firms also take care of the equipment storage. This implies that you can focus on the production dynamics as experts deal with equipment.

A Checklist of When to Consider Renting or Buying Industrial Tools

Now that we have looked at the top considerations, we will now outline a complete checklist that you can use to determine whether renting or buying is the better option:

As you can see, there is a wide array of considerations to look at when making the big decision on buying or renting industrial tools. The best advice is to factor in the finances, and think long-term. If you are getting started, renting expensive tools is the best option. Again, make sure to do your calculations well, targeting to deliver quality products or services, and customer value.