Alberta’s construction industry has seen its fair share of ups and downs over the past several years. While not all the news is bad, Alberta’s current economic uncertainty presents a challenge to business owners, in particular, the construction industry when it comes to determining if a capital purchase for new equipment or renting provides the best solution.
At W.R. Scott Equipment Ltd., we understand that determining whether to purchase a new piece of construction equipment or renting it for a specified period is a decision that should be considered carefully, and the overall bottom line must be taken into consideration. It’s one of the many reasons why when it comes to industrial equipment sales, rentals, parts supply, expert repairs, and construction equipment rentals in Edmonton contractors rely on W.R. Scott Equipment Ltd. and have since 1967.
To help you, our neighbors feel confident in your equipment investment decision, here are a few factors to weigh when deciding whether to buy or rent construction equipment:
- First, analyze your equipment needs – a general rule of thumb is that if you don’t use a piece of equipment more than 60 to 70 percent of the time, you should consider renting.
- Working with an up-to-date rental house like W.R. Scott Equipment Ltd., allows you to gain experience with new equipment and make head-to-head comparisons before purchase.
- Renting offers a cost-effective way to test it and calculate payback and job site efficiencies that will make it easier to justify an equipment purchase in the future. Also, take into geography account – it may make more sense to rent equipment at a destination than to transport it.
- With renting, all the equipment is out of your hands once you’re done with it, reducing the need for and cost of storage.
- There are also financial and bookkeeping factors like tax incentives where rental expenses can be billed back to the customer or deducted annually as a business expense.
- Capital costs of new purchases are amortized or depreciated over the useful life of the piece of equipment, rather than during the year in which it was purchased. Look at your current financial statements and take cash flow into consideration.
- Many contractors overlook the total cost of managing the equipment they own – ownership comes with insurance and other fees including the operating costs of the truck, the driver, loading and unloading time, and fuel should be included as well as maintenance and replacement parts.
There are many reasons to rent construction equipment, especially if you’re a small or growing operator. W.R. Scott Equipment Ltd. offers high-quality skid steer loaders, compact excavators, track loaders, and other construction equipment for rent from top-end manufacturers like Mustang® and Takeuchi with a wide range of attachments to meet your project’s unique needs. For your convenience, we provide daily, weekly and 4-week rental rates with two locations to serve you. If you have questions, are a homeowner or home builder, contact W.R. Scott Equipment Ltd. in Edmonton at 780-440-4040 today for the high-powered equipment you need to get the job done right.