How Renting Equipment Can Grow Your Business
Category: Equipment and Solutions
If you own a construction business, you know the importance of finding ways to grow while keeping profits high and costs low. However, purchasing and maintaining a fleet of construction equipment can be a financial drain on your business, especially if your business is small and doesn’t have as much capital.
One way to cut costs is to expand your business through rental equipment. As rental solutions continue to develop, contractors are choosing to rent moreover buying. In 2021, the heavy equipment rental market saw 3.4% growth and a market worth of $46.1 billion. By tapping into this market, you can increase your company’s potential for expansion.
Find out more about how rental equipment can help you grow your business in addition to top tips for business growth.
Top Ways You Can Use Rental Equipment to Grow Your Business
Running a successful construction company often comes down to having the right equipment in your corner. Even if you have the best staff in the world, many projects can’t be completed without the correct machinery. Below are some specific ways renting construction equipment can help you grow your construction business:
1. Reduce Costs
When you want to expand your construction business, you’ll likely want to reduce your expenses so you can earn more profit. Rental companies can help you lower costs by providing various services and helping you avoid high purchasing costs. Since renting construction equipment can help you reduce costs, it’s perfect for tradespeople, homebuilders, and smaller contractors who operate on tighter margins.
Some of the top ways rental companies help reduce your business costs include:
- Providing site delivery: Many rental companies deliver directly to your job site, saving you time and money on delivery logistics. Rental companies can further improve your company’s logistics by securing permits for oversized equipment, shouldering the fuel and toll costs, lowering production downtime, and reducing wear and tear on vehicles.
- Handling maintenance and repairs: Rental companies also typically provide regular maintenance and necessary repairs. Instead of having to purchase the parts necessary to repair equipment and hire a technician to make the repairs, the rental company will do it for you.
- Covering storage expenses: A great rental company will handle storage for you, saving you a significant amount of time and money. When you rent equipment, the rental company will store the equipment when you’re not using it. You won’t have to worry about finding the appropriate storage locations or paying for facilities. Additionally, many rental companies will handle property taxes and licensing expenses.
Alongside the many ways rental companies can reduce your costs, they also make it so you don’t have to pay high purchasing costs. Buying heavy equipment is a significant expense, especially for small contractors. For shorter-term projects with specific equipment requirements, renting can save you money over the long term. Renting before you buy can also allow you to test the equipment, ensuring it’s the best fit for your business.
2. Increase Business
The amount of businesses and projects you’re able to handle has the biggest impact on your bottom line. When you want to know how to find work for your construction company and bring in more clients to raise your revenue, you need to have enough of the right equipment available. By renting equipment, you can take on more jobs than you would be able to otherwise. A great rental company will have a broad equipment inventory you can select from.
Alongside the ability to access tons of high-powered equipment, rental companies can help you gain access to equipment more quickly. Since you won’t need to wade through all the buying logistics first, you can receive equipment faster. Additionally, a high-quality rental company can deliver the equipment directly to your worksite, helping you get to work fast.
3. Get the Latest Technology
Another way renting equipment can help expand your business is by giving you access to all the latest and greatest equipment. Typically, rentals also have integrated technology, such as diagnostics, data analysis and remote operations. These advancements will increase the efficiency and productivity of your operations. The data provided by this technology can help you isolate areas where you have an opportunity to increase your bottom line.
How to Grow Your Construction Business
With many great benefits, rental options are an ideal choice to expand business through rental equipment. Whether you’re a smaller contractor, a tradesperson or a home builder, you can take a few actions to help your construction business grow. Below are tips for growing your construction business:
- Choose high-quality machines: Make sure you choose equipment from top brands and manufacturers that have been competently maintained. If you want the most reliable machinery on the market today, Cat® equipment is always a great choice.
- Provide accurate estimates: When you’re trying to strengthen your relationship with a client and build a great reputation, providing accurate cost estimates for the services you perform can help. Clients don’t want unexpected costs, so giving them an accurate estimate at the beginning can go a long way towards building your reputation. By renting equipment, you lower the chances you have unexpected expenses, such as a broken-down machine. As a result, you can more accurately estimate how much a client’s project will cost.
- Deliver superior customer service: Part of running a successful construction company is delivering superior customer service. From the initial quote to the completion of a project, you should be ready to give your clients in-depth and responsive support. By renting equipment, you can provide better customer support when a client’s project needs change. When a client decides a project requires something new, you can quickly swap out your initial equipment for equipment that is more appropriate to the client’s requested changes.
- Partner with an exceptional rental company: If you’re hoping to use rental equipment, you’ll want to partner with a reliable rental company. When partnering with a rental company you trust and have a good relationship with, you know they will deliver high-quality equipment and provide the services you need to succeed.
Choose NMC The Cat® Rental Store for Your Construction Rental Needs
At NMC The Cat Rental Store, we’re ready to partner with you. When you choose us for your needs, you can expect to receive exceptional and reliable Cat equipment. Our clients love our competitive pricing, 24-hour emergency services, fast job site delivery, and options for renting by the day, week or month. Our helpful staff can also recommend the best equipment types and sizes for a job, as well as provide tips for the best work tools and accessories for your company’s needs.