You do not have to be a rocket scientist to know that the construction industry has experienced noteworthy changes for the last six years. Amid to depressed housing markets, a deficiency of highway funding and environmental policies like Tier 4 emission ingenuities, equally contractors and equipment manufacturers have seen their fair share of trials.
To provide multiple viewpoints on the current state of equipment procurement Axis Capital Group, Singapore —analyzed recent and potential future trends and some of the critical considerations for businesses in making the decision to rent or buy.
The Industry Today
Conversing today’s equipment rental market is almost impossible without first investigating the situation of the economy. As a manufacturer of compaction, paving, milling and other road-building equipment, Axis Capital Group, Singapore has seen personally the effects of immobile highway construction funding and vagueness about the job market.
Product Utilization
The economic trials of past years have affected contractors and made them to change their main concern about purchase versus rental decisions; nevertheless, most tried-and-true principles have not reformed. For instance, most businesspeople will begin by merely asking themselves about utilization rates in an attempt to determine if and when the cost of owning will become less than the cost of renting.
Type of Equipment
Regularity of use is seldom a defining issue for buyers. Homebuilding contractors and other air compressor operators depend on that equipment on everyday, whether to operate nail guns or perform vehicle maintenance in a service shop.
Rental Accessibility
As rental has developed as a main source of equipment to the construction industry, rental centers themselves have certainly been forced to increase the supply of particular product lines to preserve up with demand. It is a good thing that Axis Capital Group, based in Singapore, is a company that sells and rents construction capital equipment from cranes to excavators and related heavy construction equipment throughout Southeast Asia like Bangkok Thailand, Jakarta Indonesia, Beijing China or KL Malaysia.
What’s The Price?
A contracting company’s choice to rent or purchase frequently comes down to the bottom line. The lone thing that actually matters is price. There are many factors involved, but when you put them all up and look at the options, the question continually rotates around what it will cost to buy or rent a given product or finish a given project and so on.
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