Commitment Issues in The Construction Industry

Commitment Issues in The Construction Industry

Excavator operators have tough jobs: The hours are demanding and the physical labor is draining. Even so, excavator operators take great pride in their job and usually enjoy their work. In today’s market, a construction equipment rental, lease, or purchase decision calls for more than comparing costs.

The weakness in the construction industry and the uncertain prospects for future work is making it tough to acquire equipment. Investing in a machine is a major decision, and many excavator operators have to plan accordingly for the jobs ahead of them. Today, government work is down, and shorter projects are on the rise. Commercial activity isn’t bridging this gap and planning from a contractor’s point of view has to be short-term.

The construction industry itself is also changing: jobs that once took six to ten months can now be completed in four months. This has led to a rise in construction equipment rental. A longer term rental over multiple months usually runs 4% to 5% of the cost to purchase. This also eliminates the need for maintenance cost to the user, and if the user wants to transport it, they only have to pay a small transportation fee. There also is no overhead costs with rentals such as the sales tax that can be incredibly high for excavators that can cost up to $50,000.

A long list of bookkeeping benefits goes along with the decision to rent. If you own a piece of equipment, you must keep a record of everything that happens to the machine. With rentals, this responsibility is in the hands of a rental company. Renting allows you the flexibility of when you return a piece of equipment as well. It allows you to use a specific machine to complete the job without making a long-term commitment. This makes any job less daunting for the workers. One month they may need one type of equipment while the next they need another model.

If you are in the market for equipment, it’s important to consider renting. If you expect the annual time of utilization to be 60% or more, then buying may be the best option. However, if you are more in the 40% to 60% range or lower, considering a rental is the best option. In Louisiana, the terrain is much different than the rest of the country. Louisiana has marshy and swampy areas that require specialized equipment that many companies do not have. Marsh Buggies is the leading company for construction equipment rental services in Louisiana. We have rental solutions available for all of our machines that are meticulously maintained so that you can be assured that the products you rent are safe and in tip-top working order.

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