- Contractors who are feeling confident that the economy – and their businesses – are getting back on track may have to make decisions about equipment acquisition and the dichotomy between renting or buying.
- One strong argument for renting is utilization, with a construction industry guideline being that equipment should be in use 60% to 70% of the work month to justify buying it.
- The argument for owning includes being confident that you will have what you need when you need it to support growth.
Decisions may come down to planning versus budgeting. Is the cost of purchasing equipment justified by the flexibility it gives in planning the timing or the kind of work the company can do?