Renting vs. Buying Heavy Dredge or Pump EquipmentEDDY Pump has many decades of experience providing industrial dredge and slurry pump products to countless industries and companies worldwide for a wide variety of heavy-duty, industrial applications. Browse Our Slurry PumpsContact Us For a Fast Quote
EDDY Pump has many decades of experience providing industrial dredge products to countless industries and companies worldwide. Many of the companies that EDDY Pump provides its world-leading industrial pumps and equipment, and dredge pumps to, are looking for a strategic advantage against their competition. With this being said, EDDY Pump understands the advantages customers can experience with renting industrial pumping equipment instead of buying it. That is why EDDY Pump chooses to provide customers the option of renting or rent-to-buy when a lot of other companies force their customers to make an expensive purchase which can limit the financial resources they have for funding other areas of their business!
This Article Includes
- What are the Benefits of Renting Instead of Buying Industrial Equipment?
- The EDDY Pump Corporation
What are the Benefits of Renting Versus Buying Industrial Equipment?
In business, having options can be of great value and can be the deciding factor to increasing profits and gaining new projects. One option for companies that use industrial equipment is renting equipment instead of buying new equipment. Renting industrial equipment can be very advantageous, but the question that companies struggle with is when to rent equipment and to buy. The U.S. construction industry expected to grow 4.5% every year until 2027 makes this question of particular interest for any companies trying to capture a portion of this incredible industry growth.
A popular approach to renting vs. buying is that if the equipment is going to be used less than a year it is better to rent the equipment; but, if it will be used for a longer period of time than a year the best option is to go ahead and buy the equipment. The following article provides an understanding of the many benefits associated with renting heavy-equipment vs. buying.
Access to the Latest and Great Technology
Purchasing new industrial equipment and industrial pumps is a big commitment, and even though the new equipment has all the new technology, gadgets, and accessories it quickly becomes outdated. In previous times technological advancements in industrial equipment and dredge pumps did not happen as rapidly as in today’s times. In this digital age, technology is advancing at the fastest pace ever. Buying equipment is a long-term commitment and it binds your business to whatever technology was the big advancement at that time of purchase.
When you rent industrial equipment it does not require a long-term commitment. Most equipment rental companies offer the newest technology, which means that you gain all the benefits of having the latest and greatest functionality, digital gadgetry, and accessories without having to make a big purchase and drain your business’s bank account. Another benefit to renting is that, because the equipment is newer, the dependability and durability mean that you should experience fewer mechanical breakdowns and last-minute equipment failures.
Try Before You Buy
Another great benefit to renting is that you get a chance to try out the equipment and the brand, and then if you feel like buying that specific piece of equipment you can move forward and make the purchase. Trying-out equipment gives you confidence that you are making the right purchase decision. This can be of great value considering how expensive new equipment can be. Trying before you buy can lead to a lot more sleep-filled nights because you do not have to worry whether or not you purchased the right equipment for the job.
Securing and Scheduling a Larger Volume of Projects and Jobs
Smaller to medium-sized companies are challenged with how many projects and jobs they can schedule at any one given time because the amount of industrial equipment and dredging equipment they own is smaller than what can accommodate a schedule that includes a larger volume of projects. Ultimately, this leads to fewer projects and jobs completed and less revenue realized. In this scenario, a company can either purchase more equipment which can be very expensive and require borrowing the funds, leading to reduced profits due to paying high-interest rates, or they can rent the equipment which is a much more feasible option.
Renting industrial equipment, industrial pumps, and dredge equipment give a business the option to increase the volume of equipment they are using for the sake of committing to a larger amount of jobs and projects which can equate to greater revenue and growth of the company. Another great advantage of renting equipment is that instead of waiting for one project to end, then transporting your purchased equipment to the next job site, multiple pieces of equipment can be rented which allows two jobs sites to use the same type of equipment at the same time. Reducing, and better yet eliminating transition time from one job to another is time a business is making money; another aspect of renting equipment that can increase revenue and make your business more prosperous.
Avoiding Maintenance Costs
The cost of maintaining equipment that a business has already purchased is something that is very difficult to factor into a company’s budget. This is because when equipment fails it happens a lot of times without warning. This can severely affect working capital and reduce the number of projects and jobs a company can complete annually.
Renting allows a business to avoid the cost of maintenance which can save you thousands of dollars over a given period of time. Having to do maintenance on equipment can require your business to hire a mechanic that has the skills of conducting the mechanical work. Some businesses might have to hire more than one machine if the quantity of equipment to be maintained is beyond what one mechanic can accomplish. Renting is a great way to avoid maintenance costs and all the other headaches that come with owning a large volume of equipment.
No Capital Expense
Buying industrial equipment is very expensive, even for the larger companies. With large purchases like buying equipment, most companies are forced to make the purchase via a capital expense on their accounting books. Another consideration is that purchasing equipment can be something beyond what a company can accommodate in its annual purchase budget. These are real challenges that can result in negatively impacting the business’s financial ability to take advantage of financially rewarding market opportunities which might require funding in some way shape or form.
When renting, all of this goes away because rental expenses can be categorized as operating expenses that do not impact a company’s capital expenditures. Renting industrial equipment and dredge equipment also makes a greater amount of working capital available for strategic investments that can help grow the business.
Depreciation and Taxes on Equipment
When a company rents equipment and dredge pumps they reduce their tax burden because renting results in a deductible expense. When purchasing equipment it must be either depreciated over the lifetime of the equipment and in some cases can only be depreciated once in the year it was purchased. In both of these scenarios, renting vs. buying, it is very easy to see that renting can be the ideal choice, especially for smaller to medium-sized businesses where gaining the greatest return on every dollar spent is crucial. Every time a company rents industrial equipment it is a tax deduction, and the timing of the purchase does not need to correspond with a specific tax year.
Putting Your Business Ahead of the Competition
Any business that wants to compete at a higher level for the sake of generating more revenue or improving its market position must find creative ways to stay ahead of the competition. Staying ahead of the competition can be even more challenging for companies that have strained or exhausted their financial resources, or are smaller in size than the other businesses they are competing with.
Renting instead of purchasing industrial equipment and dredge equipment can be a very effective way of leveraging creativity for the sake of continuously positioning your company ahead of other companies. There are many benefits to not committing to a purchase, and instead choosing to rent the equipment that allows your company to secure new projects and generate greater revenue; this can also extend into increasing profits. Renting can equate to pushing your business to financial heights that you only dreamed about previously!
The EDDY Pump Corporation
The EDDY Pump Corporation is a world-leading provider of unique slurry and dredge pumps, and manufactures products that provide superior value versus other pump types. The pump is not a centrifugal, vortex, or positive displacement pump, but rather a pump harnessing the fluid dynamics of an eddy current. This enables the EDDY pump to outperform conventional pumps in applications that involve high viscosity, large weight of solids and particulates, high specific gravity, corrosive and abrasive material, work well in applications that are susceptible to clogging, and do it in an environmentally friendly manner.
EDDY Pump Product Categories
- Self Priming Pumps
- Industrial Heavy-Duty Slurry Pumps
- Dredging Equipment
- Excavator Pump Attachment
- Dredge Sled
- Autonomous Dredge
- Cable Deployed Dredge
- Hydraulic Power Units (HPU)
If you are pumping slurry, brines, high solids, extremely viscous material, paste, high abrasives (sand & gravel) and material filled with solids, then you found the best suited pump for the job. Go to: https://eddypump.com/ or Call Us!
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