Personal property of a capital nature, consisting of equipment, furniture, vehicles, machine tools, test equipment, and accessory and auxiliary items, but excluding special tooling and special test equipment, used or capable of use in the manufacture of supplies or for any administrative or general plant purpose
Purchasing brand new construction equipment is extremely expensive and can make a huge impact on how your company’s budget.
When you own equipment, you also have to consider the cost of maintenance and repair. Although maintenance and repair is still important for rental equipment, costs will be significantly lowered compared to purchased equipment.
Typically, construction companies are balancing a number of projects at once. Rather than incurring logistical costs of transferring equipment and sharing them among multiple jobs, consider renting specific pieces of equipment for particular projects. This eliminates any logistical delays that you may experience, and provides each jobsite with the appropriate resources to get the project finished in an efficient manner.
With owning equipment, companies must have storage solutions in place to keep equipment when it is not in use. Equipment that is not stored properly or exposed to harsh weather condition may depreciate faster. Additionally, warehouse or storage space is an additional cost for construction companies. If you negotiate with vendors or suppliers regarding how long you need a rental, your company may not need to worry about long-term storage. This saves you time needed to plan out the logistics, as well as the cost of storage. Furthermore, warehouse costs can be extremely high, especially if you have a fleet of machinery. In contrast, leasing has the ability to take these inconvenience away.