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An ongoing debate is whether to buy or rent essential equipment. Unfortunately, we won’t be able to give you a one-size-fits-all answer. We will, however, show you some pros and cons, which you can use within the context of your own day-to-day operation when faced with the big question: rent or buy?
Long-term renting of essential equipment, and how it can influence your day-to-day costs and operational efficiency, might not be something you would consider at first glance, but hear us out. While short-term needs and demands obviously lean in favor of renting, we want to help you make an informed decision about considering renting long-term instead of owning.
Your competitive advantage doesn’t come cheap. While aligning operational needs with the balance sheets, it pays to look at various running costs and explore less traditional possibilities to stay ahead in the numbers game. Ownership comes with a hefty price tag. There are visible and obvious costs such as the initial investments but running costs will keep coming. Repairs, maintenance, insurance, certification and training, fuel, or power consumption are all lingering in the background, waiting to jump on a barrage of invoices.
Essential equipment like oil-free air compressors, power generators, and steam installations require considerable financial backing. When you decide to buy, that substantial amount is tied up into the asset for a very, very long time. Analyzing the situation from both an application and usage perspective is one thing. Strategy and cash flow are essential as well and need to be added to the equation. And, it’s always good to remember that cash (flow) is King. Sure, you might have the funds available. However, matching costs and spending with specific periods (like seasonal peaks in production) or projects, and keeping watch over a reserve, benefits your overall performance and safeguards your financial flexibility.
Renting offers cost certainty and operational versatility. Its predictability offers financial transparency and improves your bottom line. On an operational level, it means you have the equipment you need when you need it, and only for the job at hand. While you need a certain amount of, for example, flow and pressure today, that can evolve in the short-term. These evolutions lead to you having to face a sale as well a new purchase. And, let’s be honest. A loss.
Renting can help you bridge an outage or emergency and offer long-term flexibility when it comes to production, and operate safely in parallel with your existing equipment. When you choose to rent, you have full control. Over expenses, infrastructure, and efficiency. For a week, a month or much, much longer.
Thanks to close collaborations with our colleagues in the factories, we find ourselves in the driver seat when it comes to innovation. Future-proof cutting-edge technologies focused on performance, energy-saving and efficiency are available in our fleet today.
With the world’s eyes on a more sustainable future, renting equipment can help you reach your ambitious goals. Besides equipment, when you do choose to rent, you get our people too. From our commercial experts to technical support (including training) and maintenance. Atlas Copco Rental’s people make the long- or short-term rental worry-free. Here are 10 reasons to rent:
Regardless of what you decide, there are always benefits and challenges to “Rent versus Buy.” The real answer to the question lies in clearly determining your operational needs and align strategic as well as financial interests.
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