Should I Rent or Buy Concrete Forming Equipment
How Renting Equipment from White Cap can help you increase profits
Every forming contractor wrestles with this question. Renting costs less, but is it as good as owning? Truth is, it can be a lot better than owning if you’re renting from White Cap. Take a look at the advantages of working with us (see reference chart below):
- We rent and sell, so you get a straight-up, unbiased evaluation based on your situation
- We always provide timely, professional delivery and pick-up service
- We take care of the maintenance (including back-up equipment and spare parts)
- We have more than 400 locations nationwide, so you’ll find a well-stocked location nearby
- We provide design time and other engineering services needed when using form systems and equipment (things like placement of tilt-up inserts)
Many contractors are renting more equipment than they buy.
It’s a no-brainer. Spend less cash and your workers spend more time forming concrete – not coordinating material and equipment. And the real cost of owning equipment like scaffolding or braces is usually more than it seems to be. Using equipment – not owning it – grows profits. When contractors under-use fixed assets, it’s a persistent resource drain. Plus, there are plenty of times like these when renting just makes sense:
- Handling short-term production peaks
- Filling in with needed, but sparingly-used equipment
- Using specialty equipment for specific, one-time requirements
The operational advantages of using rental equipment give you more options.
- Get what you need immediately. There’s no waiting on capital. When you get the job, get the best equipment right away.
- Work with the latest forming systems. When a better method comes along, you can try it. You’re not stuck with using just what you own.
- You’re free of owner responsibilities. Forget about maintenance, repairs, debt, storage, interest, parts inventory, taxes and depreciation. Manage your job, not your forming systems.
- Use the right equipment for the job. No more making do with what you have. Reduce labor costs by using what’s best suited to each project.
- Increase worker productivity. Your crew won’t be burdened with servicing, warehousing and transportation of forming systems and accessories.
- Control construction costs better. Use rental invoices as a management tool. They provide a complete history of material delivered, used and picked up for each project.
When contractors purchase their own forming systems, braces and concrete construction accessories, they don’t have as much ready capital to respond to opportunities or handle surprise expenses. But preserving cash flow isn’t the only financial benefit of renting. Here are some other ones to keep in mind:
A big financial advantage of using rental equipment is making cash more available.
Rentals are an off-balance-sheet item – neither an asset nor a liability. That improves a contractor’s bonding capacity and keeps credit lines available for short term needs.
Rentals reduce taxable fixed assets. Renting equipment is a deductible expense, so you can fully expense it to a specific job instead of depreciation spanning years and several projects.
Keep office accounting and administrative costs down. Ownership comes with extensive bookkeeping responsibilities and expenses.
Find out how equipment rental can help you grow your business by calling your local White Cap today. You’ll get straight talk from one of our rent-or-buy experts.