Construction Equipment (CE) rental business’ popularity has increased thanks to a spread of reasons. a couple of key contributors to the expansion of CE rentals include the rising cost of buying equipment, increasing economic uncertainty, lack of capital, technology upgradation, unpredictable construction and infrastructure growth, depreciation woes, costly breakdowns and limited space availability which has forced construction companies to seek out ways to save lots of money wherever they will. In many instances, renting has become a viable option for several companies and has provided them the power to chop costs and run a more financially stable construction business.

Today, many CE users are preferring to rent CE or ‘pay-as-use’ model as an optimal thanks to do business. This has proved beneficial for the CE market because with more financing of CE and therefore the increased use of rentals, their demand has only increased. at the present, the Earthmoving and Construction Equipment (ECE) rental market is merely 7-8 per cent of the entire ECE market within the country, but the share is about to extend and therefore the rental industry is predicted to grow at the speed of 30 per cent per annum within the future. Particularly, the rental market is predicted to select up in Tier-2 and Tier-3 cities of the country.
Here are a number of the advantages of renting CE which is resulting in a rise within the CE rental business within the country…

Helps in avoiding the initial purchase cost:

Purchasing new equipment always demands huge investments as they’re expensive and hence can affect your company’s budget. Also, purchasing CE may be a long-term investment. However, renting CE can help in avoiding the upfront costs related to purchasing and thus, you’ll better allocate your financial resources.

Protects you from the market fluctuations:

as long as the development sector is very dynamic and lots of things may influence the market, the rising or sinking cost of the equipment can highly affect your business. In such scenarios, renting CE can provide a cushion to your company from the unforeseen financial downturns which will arise thanks to multiple reasons. Renting CE is usually a versatile option that creates it easier for you to handle the increase and fall of the economic process.

results in less maintenance and repair costs:

the 2 costs got to be accounted for once you own a equipment. On the opposite hand, although the upkeep and repair is vital for rental equipment too, still the value is significantly lowered compared to purchased equipment. In fact, if you decide for renting CE, then you would like not worry about the expensive breakdowns in the least as most of the days, this may be taken care of by the rental company. this will also release your considerable amount of your time, labour and price required for maintenance. Thus equipment rentals can help to stay your project up and running with none delays.

No depreciation costs related to rental Construction Equipment: As soon as you buy any equipment, it starts to depreciate. So, once you own CE, you’ll need to incur considerable depreciation costs and because the value of the equipment depreciates, it makes it harder to recover the initial purchase cost. Further, because the technology advances, there’s always the danger of your equipment becoming obsolete. Hence, it’s always better to rent the equipment because it is that the rental company that assumes the danger of the asset completely and it’s drastically losing value.

Saves transportation costs:

Renting CE assist you save the transportation cost also. this is often because you’d not need to send the equipment to different project sites, which successively can save some time and project’s productivity and efficiency. for instance, if the worksite is way faraway from the first location or the situation where the equipment is stored, then the main logistical hurdle is transportation of the equipment which may be very expensive and time- consuming. In such a case, rented CE can remove the burden of contractors completely since the equipment are often delivered by the rental company to the worksite directly. Thus, construction companies can easily rent specific equipment for particular jobs at different project sites and obtain their work avoided experiencing any logistical delays.

Solves equipment storage issues:

If you buy a equipment, then you would like to make sure that you simply have a storage solution for it too. this is often to store the equipment when not in use because the equipment kept in open may deteriorate easily and depreciate faster. the right warehouse or space for storing may mean additional cost for the development companies. it’s also often seen that after completion of the project, the machinery mostly remains idle till subsequent project. However, during this point also, the development company has got to bear expenses associated with maintenance and repair. These expenses are often ruled call at the case of rented equipment as after completion of the project, the equipment are often sent back to the rental company. this protects your storage costs considerably.

Helps completing short-term projects fast:

repeatedly, short-term projects or one-off jobs need specialised equipment. For these projects, taking CE on rent are often a sensible option. The equipment are often returned to the rental company once the work is completed.

Supplements the prevailing fleet during busy season:

it’s not uncommon for particular projects to put excessive demand on the resources that exceed routine operations. Obviously in such cases, it’s far more cost effective to rent CE as they will supplement capacity on an as-needed basis. Also, through this manner, you’ll avoid the matter of storing and maintaining the equipment during slow season.

Puts an endways worries associated with resale:

When buying expensive equipment, the main concern is its resale value due to the very fact that the worth of a bit of machinery drops considerably as soon because it is bought and technological advances can make it obsolete. just in case of rented equipment, this is often not in the least the explanation for worry.

Reduces capital investment:

Last but not the smallest amount, renting a bit of CE is usually a smaller expense and thus, it’s much less impact on rock bottom line. the entire rental cost are often calculated by taking rental rate (per year/month/day) x rental period (number of years/months/days) + pickup/delivery charge.
Thus, thanks to the above factors, rental equipment business in India is witnessing strong growth. In fact, today, prominent CE manufacturers in India have started fixing their own equipment rental distribution business. While there are many big CE manufacturing companies providing equipment on rent, Mahindra Construction Equipment with Mahindra EarthMaster backhoe loaders deserves a special mention.
When it involves renting CE, the unique proposition of MCE include robust, maintained and technologically advanced equipment at affordable rates; trained, competent and experienced manpower resources with the equipment, 24*7 service support, onsite repairs and maintenance to scale back machine downtime and production loss at customer site, advice on equipment suitability supported applications and training of operator level personnel for various industries.

In a nutshell

Overall, with the development companies seeing the advantages of renting CE, the rental equipment market within the country is growing at a quick pace and is predicted to ascertain a boom further within the coming years.