March 27th, 2012 | Published in Uncategorized
We’ve touched on the ‘rent or buy equipment’ topic before and considering the impact on the bottom line, it’s worth revisiting.
Today, it is more important than ever to control costs. Contractors tend to center their attention on cutting labor and material costs during tough economic times; however, equipment costs, especially for heavy contractors, can dramatically impact their financials even more than their workforce and material costs.
Construction Executive magazine published a special section about Equipment in its March issue with an article, “The Financial Ramifications of Leasing vs. Renting vs. Buying,” which offers a number of considerations and assessments worth some thought during a contractor’s decision-making process.
“The construction market downturn has caused many contractors to rent or lease equipment instead of purchasing it. Understanding the differences between renting, leasing and buying construction equipment—as well as understanding the organization’s current needs and future projections—is crucial to choosing the option that will result in the best financial and strategic outcome. Contractors that weigh the pros and cons of renting, leasing and purchasing before selecting an option, as well as enlist the counsel of an accountant or lawyer, will have the advantage when entering into an agreement.”
At Maxwell Systems, we have seen that contractors using business management software are better able to obtain the highest productivity possible from their equipment (whether they rent or own), at the lowest possible cost, and extend the lifespan of equipment. This helps construction companies turn what might be considered an equipment burden into a true profit center for the company.
Furthermore, implementing the right construction management software to streamline processes and improve accuracy from bid-to-cash can be a great solution to keep jobs on schedule and on budget, as well as to help gain a competitive edge.
We invite you to download this free brochure and datasheet that detail the benefits of using a complete solution to manage your construction business and why you might want to invest in software for equipment management.
To read the Construction Executive article, “The Financial Ramifications of Leasing vs. Renting vs. Buying,” authored by Peter Ryan and Brian Bastis of Ryan & Wetmore, in its entirety at the magazine’s web site, click here.
Look to Maxwell Systems for quality construction software systems.