From Ownership to Leasing: A Smart Move for Construction Companies in India
The construction industry in India has yet to fully tap into the potential of technological advancements when compared to the rest of the world. Developed countries are leaps and bounds ahead of us in terms of technology and infrastructure. This is particularly evident in the equipment leasing market, which accounts for only 6-8% of the total construction equipment market in India in fiscal year 2017. In contrast, globally, leasing makes up 50-60% of the total construction equipment business. Given the complexity of this industry, it is imperative that Indian construction companies start adopting modern technologies, and by exploring the option of leasing equipment, Indian construction companies can take a step towards improving their overall efficiency.
Here are the five reasons why leasing equipment can benefit you more than owning it:
- Cost-Saving:
- Large inventory available:
- Emergency:
- Upgrade the model:
- Payment flexibility:
Did you know that leasing construction equipment can save you money? When you rent equipment, such as an excavator or wheel loader, it typically costs less than owning it outright. That's because when you own equipment, you not only pay for its price but also depreciation and future repair expenses in the long run. Especially if you need to use the equipment only for a short period, why shell out more?
Not many people give a thought to it, but a piece of equipment that is out of your reach due to its cost may come at a lower expense if you rent it out. Thus, you have many options at your disposal to choose from, which you might not have if you look to buy the equipment. Also, you might add many other machines as per your project needs quite easily without a second thought.
What if the machine you have stopped working in the middle of an important project and your deadline is just approaching? You need to find a solution quickly. In such a situation, leasing is the best option available. You know you want another machine just temporarily till this project is completed and then you can heave a sigh of relief. You may or may not have the needed finance to buy another machine in such a short time.
As technology advances every moment, it is necessary to use updated machinery that is not out-of-date. To achieve optimal results in the construction business, it is paramount to use the latest technology available in the market. Renting machinery provides the opportunity to easily trade it for a newer and better model at a minimal rate. On the other hand, buying the latest model can cost you significantly more.
One constraint that has been always there for most contractors in the construction industry is the financial resources needed to upgrade or source important industrial equipment. While owning a piece of equipment needs lump sum money, renting gives you the needed financial flexibility. With a range of payment options available, you can choose to pay rentals over a period or in a manner that suits your budget. This allows you to focus on growing your business without the stress of large upfront costs.
With the above advantages, the decision to rent equipment is a clear winner that can solve many challenges that construction companies face. What are you waiting for? Explore the many benefits of renting industrial equipment and take your construction projects to the next level before time runs out!