Considerations When Renting Heavy Equipment in the Philippines
What should be taken into consideration when renting heavy equipment in the Philippines?
- The cost of renting vs. the cost of buying
- Length of project
- Equipment availability
- User preference
Heavy equipment in the Philippines doesn’t come cheap. They are specifically made to endure heavy burdens and handle difficult tasks in construction sites, excavation projects, and in a lot of other applications. In a sense, heavy equipment is specialized machinery that is designed to be strong, sturdy, and maneuverable at the same time.
Asking yourself whether you should buy or sell heavy equipment is difficult. It is something that is hard to answer particularly for the newer and small construction businesses who still have limited budgets on certain projects.
Renting heavy equipment can benefit you with its low immediate cost, but will eventually become expensive when you do it over multiple projects. Most rental companies also offer the latest and the most well-maintained heavy equipment that they have—giving you the assurance that the machines that you’ll be renting are of high-quality!
But the cost isn’t the only thing that you should consider when renting heavy equipment! Listed below are some of the more important considerations when renting heavy equipment in the Philippines!
The Cost of Renting vs. the Cost of Buying
To shed a bit more insight into the context of renting having lower immediate costs, you should have an idea of how the cost of renting and buying are compared with one another. Hidden costs are all over the place and if you’re a company that is working on a strict budget, you should be aware of all of the things you’re paying for. Before buying or renting, ask the dealer what is included and excluded in the given price.
To begin with, buying a piece of heavy equipment doesn’t end at getting it. Also included with it are the maintenance costs, operating costs, insurance costs, government licensing, and many other fees that are different among machines.
When you’re renting, however, the price is usually inclusive and lower than flat out buying a piece of heavy equipment. Keep in mind that the rental company would probably mark it up, and no other service would probably be given—meaning you’ll have to pay for transporting the equipment to your construction project.
Fuel is also something you should take into consideration. It’s something that will always be present, whether you’re buying or selling, and it can make up around 1/3rd of your total expenses.
Length of Project
One of the major things that you need to consider when renting a heavy equipment is how long a project will last. In most cases, renting is the best choice for short jobs where you need a relatively specialized piece of equipment. Most of the time, small construction companies in the Philippines would usually be focusing on some smaller projects while they are in the process of making a name for themselves.
Aside from how long a project is, you should also put into account the frequency of jobs. When there is quite a long time between projects and there’s no immediate need for a specific heavy equipment, then renting your machines would probably be the better option.
However, when the time comes when your business gets more projects that vary between long-term and short-term, then it’s safe to say that it would be better for you to buy your own heavy equipment.
Sometimes a construction project will require a particular piece of equipment that you don’t have in your arsenal. Without any assurance that you’re going to need it in the long run, you might as well just rent it from a rental company.
Before renting, however, check out your own arsenal of heavy equipment. Remember that there are some machines that have multiple purposes. Equipment such as loaders, excavators, trucks, and forklifts can be used in a variety of ways—making them very capable and versatile in most construction projects!
It may also be a good idea to choose multi-purpose heavy equipment when you plan on renting. Getting one machine that does the work of 2 or 3 different ones can save you a lot of money!
Although it was mentioned a while ago that constant renting of heavy equipment can be expensive and somewhat impractical, some companies still do this because of one reason—rental companies usually provide the latest and most advanced heavy equipment out there.
If you’re a company that prioritizes always having the best and latest heavy equipment, then renting is for you. Having access to the latest models of heavy equipment can signal that a construction company prides itself in only using the best of the best—heavy equipment that is equipped with state-of-the-art technologies that will help its functions and add another layer of safety all around!
Construction companies don’t spontaneously choose to buy or rent their own equipment. They would usually assess and strategize for days on end, making sure that they’ve considered everything they need to. Those listed above are just a few out of the many considerations that every construction company needs to take note of when they’re planning to rent heavy equipment in the Philippines.
As the country’s leading supplier and distributor of the best heavy equipment, MULTICO offers nothing short of top-notch equipment and excellent service. Contact and visit the Cebu branch for inquires!