When a construction business owner ( CBO ) rents equipment, they no longer have to worry about issues like repairs and routine maintenance, storage and transportation. The hire company handles all of this, allowing the CBO to devote a lot of time and tools to do so. One of the main reasons for choosing to rent is reducing or eliminating CapEx, despite the fact that there is a significant advantage issue with renting. As an example, excavators, which are often needed only for a short time, can cost between$ 200, 000 and$ 500, 000 to purchase, compared to a daily rental rate of as little as a few hundred dollars.
Nevertheless, deciding to rent than get technology does come with some possible disadvantages. Second, CBOs may consider the comfort and short-term benefits of renting against the possible loss of significant investment funds over the long run. CBOs perhaps be “rolling the stones,” that is, they cannot be certain that the tools and equipment they need will be there when they need them, making this even more pressing. Design firms with a focus on tasks like highways, public functions, and other structures that are vulnerable to damage from unexpected natural disasters are especially concerned about this problem. It’s almost impossible to predict what products may be required for these businesses, and when and where.
The ability to monitor rental company technology accessibility may vary from CBO to CBO, but in general these systems and procedures are not well-automated and older. This is because, compared to other industries, design companies tend to be delayed technology users. In fact, according to McKinsey &, Company, the construction industry placed last among 22 industries surveyed for modern readiness. This is likely due to several factors, including a prevalent attitude in construction of,’ if it ai n’t broke, do n’t fix it.’ Some businesses do n’t understand the greater efficiencies that automated, digitized processes can bring, so why would they want to replace paper spreadsheets with a more sophisticated digital system?
On regional construction sites, gear and device tracking is frequently a challenge and can lead to significant work time loss, even for a CBO who is only slightly advanced digitally. Gradually, this downtime may snowball and lead to a huge hit on general project performance. This has a significant impact on both the rental company and the CBO, not to mention on-site employees who rely heavily on having the necessary equipment and tools when they are needed, because they may be overseeing the hire of products to hundreds, even thousands of CBOs at once. Additionally, there are numerous situations of lost time on tasks that can accumulate, which is a major contributor to CBOs ‘ financial woes and, in the end, an industry loss rate of over 80 %.
In building, a thorough equipment management system can be the key to ensuring transparency. This platform should be available to all stakeholders ( rental company, CBO and on-site workers ), integrate with stakeholders ‘ key platforms like e-commerce and financial management, give total transparency to equipment and tools ‘ location, usage, expense and efficiency, and ultimately, unsnarl the entire process for all parties involved.
In addition to accountability, technology is also essential. CBOs must understand, make the process of putting equipment and tools to the disposal of their on-site staff easier, and do it more effectively. A significant portion of this may be the purchase of tools and equipment for significant construction sites due to construction beginning. For instance, the on-site worker purchasing procedure can be simplified because the tools needed can be purchased from the e-commerce system in just a few keystrokes via automated basket collection. A powerful electric approach requires reducing resistance points and removing unnecessary steps.
For the success of any rental design, whether it is for automobiles, equipment, real estate, or something else, clarity is essential, and the rental industry for construction equipment is no exception. In a typical business model, there is still a lot of room for miscommunications and problems even though this business model is on track for significant growth in the future. A common, comprehensive equipment management platform can provide the foundation for much-needed automation and transparency, fostering closer understanding and communication, and ensuring that all parties receive the maximum benefits.
