Mitigating Risk in Uncertain Times
2020 has been a year of uncertainty. As people try to manage their health and well-being during the COVID-19 pandemic, businesses and governments are trying to do the same. In the United States and Canada, many construction, manufacturing, and maintenance businesses have been deemed critical or essential. Examples include those in healthcare, energy, food and water, transportation, and utilities. Work continues, but not in the same way that it used to.
The pandemic is also forcing business owners to take a hard look at their balance sheets. Companies of all sizes are looking for innovative ways to work safely and effectively, while reducing costs. Rental equipment has a key role to play in supporting these innovations. There are three distinct benefits to renting equipment instead of buying equipment during the COVID-19 pandemic: cost, flexibility, and availability. Here’s what you need to know.
Cost: Spend Only What You Need To
“When the pandemic is over, the most successful companies will be those who were able to adapt to changing circumstances”
The start of the pandemic brought lockdowns sweeping across the globe. The ensuing economic chaos forced many small businesses to go under, while even the largest companies faced lower earnings and unprecedented losses.
Let’s face it—2021 budgets are suffering, and the appetite for capital spending isn’t what it used to be.
Rental equipment avoids this problem entirely. Instead of spending capital dollars on a piece of equipment that won’t be used consistently, it makes more financial sense to rent only what you need as you need it.
It can also be easier to justify a rental as a maintenance expense or operating cost than to go through all the internal approvals needed for a capital purchase.
There are a few other ways that rentals can help your bottom line. The absence of depreciation is one example. The lack of costs associated with equipment maintenance and storage are two others. And let’s not forget time.
When you work with a reliable rental company like Red-D-Arc, its personnel will have the expertise to help you determine exactly what you need for your application, saving you precious time and energy.
Flexibility: Scale Up and Down on a Dime
The pandemic represents a truly fluid situation. With second waves of COVID-19 hitting multiple regions, the policies of federal, state, and provincial governments seem to change daily. And if you operate in different jurisdictions, each with their own authority, the challenge is even more difficult. A company’s ability to adapt to these changing conditions will help set it up for long-term success. Rental equipment is one part of that equation, as it allows owners to quickly scale up or scale down production.
If there’s an outbreak in your region and workers are forced to stay home, scale down.
If there’s a low case rate in your area and a new project arises, scale up.
If your client has to put a project on hold because of budget constraints, scale down.
If your client suddenly receives a government benefit or grant, scale back up, and so on.
The ability to manage these constant changes, and to stay resilient when work dries up, will set successful businesses apart. And as many of us know, necessity is the mother of invention. This proverb holds true when it comes to making ends meet in 2020.
Businesses and governments alike are trying to find new ways to keep people employed, healthy, and safe. When a business owner rents a piece of equipment, they have the freedom to step outside their comfort zone and try new things, without the commitment that comes with a capital purchase. Maybe your coating company wants to try adding dry ice blasting to its list of services. Or perhaps your fabrication shop would like to expand into field construction and welding services.
Whatever the case may be, rental equipment is well-suited to adapt to changing economic conditions, and it offers a high degree of flexibility from job to job.
Availability: Access to What You Need Now
Renting provides quick and easy access to the equipment you need, when you need it. By renting from Red-D-Arc, you won’t have to worry about international border closures, shipping delays, or backlogged orders. And if the rental company has multiple locations, your chances of getting exactly what you need, in a timely manner, are even better.
When you rent equipment from a reputable company, you’ll also gain access to the expertise of its employees and specialists. They’ll have hands-on experience with the equipment you’re planning to use, and they will be able to share lessons learned from past projects. Rental specialists can also help you determine the best equipment and products for your job, and with multiple models, sizes, and configurations available, you’ll have the ability to move between different projects with speed and ease.
Renting: Your Ticket to Long-Term Success
When the pandemic is over, the most successful companies will be those who were able to adapt to changing circumstances. Rental equipment allows business owners to quickly adjust their plans, while bridging the gaps between cost, flexibility, and availability.
Leave a Reply