equipment for SMBs. These costs have always existed, but they are more evident now due to the economy. However, they don’ t create a reason to be overly concerned. Just being aware and familiar with them helps to keep everything in perspective. maintain a balanced view of the industry and don’ t make things harder on yourself than necessary.
Second, there are ways that contractors can mitigate heavy equipment costs and expenses by integrating a few simple tips into their business model. This will help them to stay competitive even in this market. We will be discussing those things in this article, as well as addressing the question of whether to buy, rent or lease machinery.
In addition, we will get some insights from an expert in the field of purchasing revenuegenerating equipment. But first, let’ s look at what factors contribute to the high cost of
Key Reasons for High Cost
Initial purchase price: Even small models of heavy equipment can have a high upfront cost due to complex engineering, advanced technology and robust construction materials.
Maintenance and repair: They are inevitable but necessary.
Technological advancements: While offering undeniable benefits for larger projects, the advanced features on newer equipment does increase the price tag.
Depreciation: Like almost any product these days, construction equipment loses some value over time.
“ Hidden” costs: Though not actually hidden, there are many costs that contribute to the overall purchase and ownership of equipment. These include taxes, delivery fees, insurance, extended warranties and improvements made to the machinery.
Operating costs: Among these costs are operator wages and benefits, fuel costs and routine maintenance.
Rent, Lease or Buy? As with anything, there are pros and cons to all three
www. contractorshotline. com January 10, 2025 17