A Cost Analysis for Man Lift Rental vs Purchase

A Cost Analysis for Man Lift Rental vs Purchase

Meta Description: Should you rent or buy aerial lifts for construction and maintenance jobs? This article analyzes the pros and cons of renting vs. purchasing boom and scissor lifts to help you decide the best option.

This article analyzes the key factors to consider when deciding between renting, leasing, or purchasing construction equipment for your business needs.

Different scenarios suit different options best, so evaluating your project requirements, budget, and long-term owned equipment needs is important to make an informed choice. The pros and cons of each option will be discussed to help you determine the most suitable path for your business.

Key Takeaways

• Renting equipment is best for short-term or specialized needs, avoids large costs, and has flexibility.
• Leasing is for longer-term needs than renting, has upgrade options, and avoids a large down payment.
• Purchasing is best when equipment will be used regularly long-term, allows customization, and can become a business asset over time.

Factors to Consider When Deciding Between Renting and Purchasing Man Lifts

When deciding between renting an aerial lift, such as a boom lift or scissor lift, versus purchasing one, there are several important factors for construction companies and contractors to consider. The frequency of equipment usage, total cost of ownership versus the cost of rental alone, and liability and responsibility considerations should all be carefully evaluated to determine the best option.

One of the primary factors in deciding to rent or purchase aerial lifts is how often the equipment will be needed on job sites. Renting makes more financial sense for equipment only required occasionally or for short-term projects.

However, suppose an aerial lift such as a boom lift will be needed regularly and continuously over longer periods for various construction and maintenance tasks. In that case, purchasing may prove more cost-effective in the long run.

Cost Analysis of Ownership vs Rental

Performing an in-depth cost analysis and comparison of renting aerial lifts versus owning them can help identify the most affordable option. Rental companies typically offer newer equipment with the latest safety features.

While rental rates may seem reasonable for short periods, the accumulated costs of frequent or long-term rentals could exceed ownership expenses such as maintenance, insurance, and even storage costs when amortized over many years. Tax benefits may also favor purchasing.

Liability and Responsibilities

Renting aerial lifts involves less long-term liability and responsibility compared to ownership. Rental companies are responsible for repairs, maintenance, and equipment issues. However, renters are still liable for losses and damages during use.

Purchasing shifts more responsibility, like repairs, maintenance costs, compliance with regulations, and equipment inspections to the owner. Owners also retain the resale value of the asset. Comparing liability and responsibilities with individual circumstances helps determine the best option.

Carefully weighing factors such as equipment usage patterns, quality service only, total cost of ownership versus long-term rental costs, and liability considerations provides a solid foundation for construction firms to decide whether renting or purchasing aerial lifts best serves their operational and financial needs in the short and long run. An objective analysis incorporating all relevant aspects can help optimize this important equipment acquisition decision.

Common Types of Man Lifts

Aerial lifts, also known as mobile elevating work platforms (MEWPs), are essential equipment used for various construction and industrial activities that require working at heights. Some common aerial lifts used in these sectors include scissor lift training front lifts, boom lifts, and other specialized aerial platforms.

Scissor Lifts

As the name suggests, scissor lifts utilize a scissor-like mechanism for their vertical movement. They are ideal for indoor applications that require working at lower heights of up to 20 or 30 feet. As rental companies have newer scissor lifts readily available, renting them is a cost-effective option for contractors needing them for short-term jobs. Their compact size allows working in tight spaces like warehouses for lifting goods, stacking materials, and performing maintenance tasks.

Boom Lifts

Boom lifts, including articulating and telescopic boom lifts, provide access to higher points than scissor lifts. They extend horizontal booms or arms and elevate the platform, enabling work from 20 feet to over 100 feet. This makes boom lifts suitable for outdoor tasks like glazing, electrical work, and facade maintenance.

Other Aerial Platforms

Other specialized aerial platforms include aerial work platforms (AWPs) like ladders and bucket trucks. Aerial ladders, as the name suggests, are truck or vehicle-mounted vertical ladders that can position workers near elevated work areas.

Bucket trucks allow personnel to be elevated in an insulated bucket at the end of a vertical boom for tasks like utility line work, tree trimming, and maintenance of street lights. Their maneuverability on roads makes them essential rental equipment for related industries.

Benefits of Renting Aerial Lifts

There are several key benefits for businesses that rent aerial lifts instead of purchasing them. Renting aerial lifts provides flexibility to companies and helps them avoid large upfront costs that come with owning heavy equipment like boom lifts and scissor lifts.

Renting also allows businesses to have access to the latest equipment technology without worrying about maintenance costs.

Avoid Large Upfront Costs

Purchasing aerial lifts requires a substantial initial investment that not all businesses can afford. Buying equipment outright, like boom lifts that can go up to heights of 50-80 feet or scissor lifts that provide vertical access, comes at a high price.

Renting aerial lifts is a cost-effective alternative as it eliminates the need to spend thousands or even tens of thousands of dollars upfront. Companies only need to pay rental fees periodically for the duration they need the equipment. This protects cash flows and reduces financial risks.

Access to the Latest Technology

The construction equipment industry sees continuous innovation and development of newer and more advanced technologies. However, upgrading to the latest equipment models requires a major capital expenditure not feasible for many businesses.

Renting aerial lifts from reputable rental companies ensures access to state-of-the-art equipment incorporating the newest safety features.

Owning heavy machinery like aerial work platforms involves ongoing maintenance and repair costs. Responsibilities like inspections, repairs, and replacement of parts can strain budgets. They are renting shifts such responsibilities and associated costs to the rental company.

Businesses using rented aerial lifts do not need to worry about maintenance or repairs. They can solely focus on their project without diversions. This streamlines operations and lowers overhead expenses.

Benefits of Purchasing Man Lifts

There are several advantages to purchasing aerial lifts for long-term usage in construction and related industries. While it requires a significant upfront investment, ownership offers certain financial and operational privileges over time.

Tax Benefits and Depreciation

One of the major benefits is potential tax deductions and depreciation. As a capital purchase, aerial lifts can be depreciated over several years for tax purposes. This provides owners with significant tax savings annually. Depreciation is claimed on the value of equipment as a business expense, which reduces taxable income. It enables owners to offset tax liability and improve cash flows.

Ownership Privileges

When you purchase aerial lifts, you gain complete control over their usage and maintenance. You are not bound by rental timeframes or restrictions of other ownership models. Equipment is readily available for projects as per requirements.

Customizations are also possible for specialized needs. Owners can install addons like fall protection systems, safety railings, or tool mounting plates. This improves productivity and job site safety.

While the initial investment is high, purchasing proves economically viable for regular or long-term use. Over extended periods, the total cost of rental or leasing surpasses equipment financing costs.

Maintenance expenses also reduce with time as depreciation lowers replacement value. Savings from avoided rental fees and interest payments offset the equipment cost.

Performing a TCO Analysis

Performing a thorough total cost of ownership (TCO) analysis is important for businesses to determine whether renting or purchasing construction equipment will be more cost-effective in the long run. A TCO analysis considers all relevant costs associated with owning a particular piece of equipment over its entire lifecycle.

Factoring in Ownership Costs

When calculating ownership costs, it is crucial to consider the initial purchase price of the equipment as well as ongoing expenses such as repairs, maintenance, insurance, taxes, and facilities costs if storing the equipment on-site. Fuel and consumables must also be accounted for. The estimated resale value of the equipment after a certain period helps determine depreciation costs. Proper maintenance is important to maximize resale value and minimize repair costs over the ownership period.

Considering Rental Rates and Contract Terms

It is equally important to evaluate rental rates carefully, how they may fluctuate over time, and other contractual service obligations. Daily, weekly, or monthly rental rates need to be studied based on the anticipated usage of the equipment. Any damage waiver costs or restrictions on equipment operation should also be examined. Fluctuations in market demand could impact future rental rates as well.

Determining Break-even Point

Comparing total ownership costs against total rental costs over different periods helps identify the break-even point where renting versus purchasing would deliver similar financial outcomes. This break-even analysis aids the decision on whether outright purchasing equipment that offers better long-term value or renting suits a company’s needs better, depending on the expected ownership duration. Regularly reassessing equipment requirements is prudent, as business needs may change.