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Forklift Rental Vs Ownership

Forklifts October 28, 2016

When it comes to having one forklift or a fleet of forklifts, there is often one question you need to ask yourself, should I rent or should I own ?

Now there isn’t one right answer to the question, as it really comes down to what your individual requirements are for your business.  But Forkliftmarket wants to take a look at the real benefits for rental and the disadvantages of ownership.

Benefits of Rental

  • It allows you to focus on your core business.
  • Your business profit is generated through equipment use.
  • Minimizes or eliminates risk from your business.
  • You can have a Fleet modernization program in place.
  • Generally fast service and back-up equipment availability.
  • Compliance with Australian standards and Health and Safety Legislation.
  • The forklift rental company has to dispose of equipment.
  • You have the resources and flexibility to manage future needs.
  • Your business has reduced operating and overhead costs.
  • Most forklift rental companies have a computer based fleet management.
  • Improved operator productivity and efficiency (with improved technology).
  • Fully maintained equipment – no extra costs, with a single charge allows for simple budgeting.
  • You can consolidate all mobile equipment under a single fleet management package.
  • You can enjoy consistent and reliable service support

Disadvantages of Ownership

  • Time, difficulty and cost to manage.
  • Your business capital is locked up in a depreciating asset.
  • You run the risk of budgeted repairs and maintenance.
  • Risk of obsolescence with your fleet.
  • You have a large risk and cost of downtime with your fleet.
  • Safety or environmental risk.
  • Equipment disposal risk and costs.
  • You have no protection against unexpected risks.
  • Hidden costs e.g management and administration time, which is often overlooked.
  • General lack of control and poor maintenance of Repairs and Maintenance records.
  • Old or inefficient equipment adversely affects productivity and operator morale.
  • Uncertainties and difficulties of budgeting for repairs/major overhauls.
  • Complexities, time and costs of dealing with different service providers.
  • Service could vary nationally and be more difficult to manage.

Well there they are, it’s not an exhaustive list, its the benefits and disadvantages as we see them.  Just do your research before you do anything, you need to have an understanding of whats best for your business.

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