About the Talk
September 9, 2014 12:00 AM
Axis Capital Group, Singapore: How to Keep Equipment Rental Trend Stays Strong and Void Complaints
The primary factor as you consider rental versus ownership costs, and unless you have fixed contracts in place, you will need to take your best educated guess is how much you are going to use the equipment. Ask what projects do you have contracted; is it short term and long term? What’s your usual percentage for bids won?
Immediately after you’ve got a line of sight to the volume of work, you can bend your responsiveness to counting the concrete operation of the machine you are considering. Perhaps the simplest way to calculate utilization is to use the industry standard, which ponders holidays, maintenance and repairs and between-job lags. Remember, if equipment operates 22 days or 176 hours per month, that’s 100% utilization.
Ask yourself, do you have the financial “flex” for ownership? Every time you finance equipment, you fundamentally decrease the amount of money you have available to use for other business needs. But remember to be very watchful of scam and fraud. You also have to think through that making a purchase could add sufficient debt to reduce your borrowing capacity in the long run. The current economy is filled with impulsiveness. If you do not have a high degree of assurance in your future projects, rental can give you the suppleness your business needs. Moreover, a lot of rental companies offer rental agreements with selections to purchase, so must your business outlook modify, you have the choice to purchase.
Do you have adequate maintenance and repair support? When you own a piece of equipment, any maintenance and repair needs and the interruption that could attend to them are on your balance sheet. Renting eradicates this requirement as repair and maintenance services are usually covered in the rental. If the need begins, the rental company leads someone to repair the machine; it is replaced if the machine cannot be fixed. This decreases downtime and eradicates any project postponements. The other advantage is that most rental companies uphold equipment to the manufacturer’s recommendations and achieve routine maintenance to preserve the machines prepared to rent.
Are you interested in testing new designs or technology? Rental fleets alternate machines often and comprise newer machine technologies in their fleets to make them more eye-catching to contractors. By means of a rental with an groundbreaking design or technology that you are interested in counting to your fleet gives you a low risk way to try it before you buy it. Review the item before renting.
You must have a good relationship with a distributor. Rental distributors normally carry many types of machines and talk to lots of contractors every day about which machines functions best in diverse applications. Work with a company that you know, or whose reputation you know, and leverage its expertise in selecting the right rental machines like Axis Capital Group, based in Singapore, is a company that sells and rents construction capital equipment from cranes to excavators and related heavy construction equipment throughout Southeast Asian such as KL Malaysia, Beijing China, Jakarta Indonesia, Bangkok Thailand and many more.