One of the main benefits of micro diggers over larger machines is that they can fit into tight spots that larger machines will have a harder time getting into. But beyond boosting productivity and efficiency on your job site, micro digger hire also provides cost-saving benefits and other financial advantages for builders that use them.
Small and Medium-sized Enterprises (SMEs) in the construction industry can reduce the overall cost of their project and stay within budget when they favour micro digger hire over buying their excavator or getting a full-sized machine. In this article, we’ll analyse some of the key cost-related benefits of micro digger hire for small businesses.
Save Cost on Initial Investment and Capital Expenditure
Purchasing an excavator is a substantial capital expenditure-one that can strain your finances as a small or medium business. You can avoid this upfront cost entirely by making a smaller investment in a short-term hire. This allows you to get the job done while allocating your capital to other areas of your business, such as hiring skilled labour, expansion, marketing, and so on. As your business grows bigger, you may be able to purchase other machinery as required for various projects.
Maintenance and Repairs
Owning a micro digger comes with the added responsibility of handling ongoing maintenance as well as repairs when the machine breaks down. While this might not seem like much, these expenses can add up quickly over time. That’s not to mention the fact that they can occur unexpectedly, causing unforeseen delays in your project.
When you hire instead of buying, the rental company has the responsibility of handling repairs and maintenance. This reduces the financial burden on your small business by ensuring that you always have access to a well-maintained machine without worrying about downtime and unexpected costs.
Storage Costs
The cost of owning a mini digger also includes storage costs. You need ample storage space, well protected from the elements for a heavy-duty machine like an excavator. Most small and medium enterprises will have a hard time providing these things. And even if you can afford it, it’s additional costs that can be avoided entirely when you rent instead of buy. By renting, you’ll only get the micro digger for the duration of your project. This frees up valuable space and other expenses that come with storing the machine.
Depreciation and Resale Concerns
Heavy machinery like micro diggers tends to lose value over time. Not only will the machine’s condition deteriorate with use, but manufacturers will also update new models, leaving your machine outdated in a few years. At the end of the day, the resale value of your equipment will be significantly less than your initial investment.
By opting to hire instead of buy, you eliminate the risk of the machine losing value as a result of depreciation. This also means you can always get the latest and most efficient equipment for your project without worrying about the long-term financial impact.
Flexibility in Equipment Selection
Construction projects vary in scope and requirements. The excavator you purchase now will not work for every single project you’ll be working on in the future. Since it’s impossible to purchase a new machine each time you’re working on a new project with a different requirement, simply renting is a better idea.
Equipment rental companies offer different micro diggers with varying specifications. This way, you can always choose the most suitable equipment for the project at hand. It optimises efficiency and reduces unnecessary expenses associated with owning a range of equipment just to keep up with changing requirements.
Insurance Costs
When you purchase construction equipment, you have to insure them. Although this can be beneficial in the future, the cost of insuring owned equipment can impact the bottom line of your business significantly. When hiring, the rental company is responsible for providing insurance coverage, relieving SMEs from the burden of purchasing separate insurance policies.
Tax Advantages
In many cases, rental expenses can be considered tax-deductible business expenses. This can be beneficial to your business since it helps to lower your overall tax liability. So not only are you saving costs by not spending upfront, but you’ll also save money in the long run, improving your cash flow and the overall financial health of your business.
Adapting to Market Conditions
The construction industry is subject to market fluctuations and changes in demand. Even if you have a large client base, your construction company may not need an excavator during certain periods. This leaves you with underutilised assets that are not bringing in any money during slow periods. With renting, you only get what you need when you need it. This allows you to align the cost of your equipment with project demands at every point in time.
Conclusion
Hiring a micro digger can be quite beneficial, not just in terms of productivity and performance but also because it makes financial sense. As highlighted above, tenting provides numerous cost savings and financial advantages for SMEs, ranging from the reduction in upfront cost to eliminating additional expenses associated with owning a heavy-duty machine.
Getting a good quality micro digger is easy too. With reliable equipment rental companies like easyToolhire, you can get access to the latest micro diggers and other construction equipment for your project. Contact us now for a micro digger hire on your next project.
