One of the biggest decisions many contractors have to make is whether to buy or rent their welding equipment. Knowing which choice to make requires careful consideration, and each option offers specific benefits for your business. This blog will go over the factors to consider before determining which route to take.
Utilization Rate
Utilization rate is one of the biggest factors to consider when deciding to buy or rent welding equipment. Projecting your equipment’s utilization rate is easy; calculate the rate you utilize the equipment and compare that to the total time spent working. Buying your welding equipment is recommended if the utilization rate exceeds 70%; this provides peace of mind that you’ll always have the equipment you need at all times.
Technology Requirements
Knowing the welding equipment technology you need also plays a critical role in this decision. Purchasing your equipment makes sense if you constantly need specialized equipment, however, buying your welding equipment means you’re stuck with what you have and may find yourself technologically behind your competitors. Welding equipment rental options carry risks as well; while finding the right rental provider gives you access to the most up-to-date tools, you’re at the mercy of availability and may have to wait for the equipment you need.
Equipment Cost
Knowing your budget and equipment cost determines if you should buy or rent equipment. Here’s a breakdown of projected costs for each option:
Cost of Purchasing Welding Equipment
The cost of purchasing welding equipment depends on what you need; however other factors influence the total cost. Logistical management and equipment transportation must be considered when determining the full financial commitment, especially if you frequently have out-of-town jobs. The factors that play into the total cost of purchasing welding equipment include:
- Capital expense
- Depreciation of equipment
- Maintenance costs
- Interest rate (if financing your purchase)
Calculating these elements helps determine the entire cost of buying welding equipment.
Cost of Welding Equipment Rental
Determining the actual cost of renting welding equipment is easier. The monthly welding equipment rental cost depends on the equipment you’re renting but typically ranges from $100 to $5,000. However, equipment availability and longer rental times can increase rental quotes.
