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  • Goutam Das

How construction equipment rentals in India can increase your ROI ?

With any type of equipment financing, your return on investment (ROI) is an effective measurement for determining how well the plan construction equipment financing terms has helped you to complete your business goals. In rental business, ROI is interpreted as ROR (Return on Rent).

Factors that contribute to evaluating ROR include: Effective use of capital – We need to evaluate the long-term commitment of capital investment vs rental equipment financing. It is always risky to manage such huge machinery for each and every infrastructure project.

Total Cost of Ownership (TCO) – Evaluation of your total cash outlay for equipment or property over time can provide valuable insight to your ROI. This includes weighing the advantages and disadvantages of purchasing consruction equipment vs. equipment financing, leasing or renting. Life cycle – Significant investments in items such as trucks and construction equipment must take into account the expected life cycle of the investment. More modern equipment offers some advantages such as improved features, higher reliability that equates to lower maintenance costs and improved performance that may reduce fuel costs.

Advantages of using a rental machinery -

  1. There are a number of other benefits to renting construction equipment instead of buying it, including the opportunity to “upgrade” your equipment as you see fit, which gets around maintenance costs, and foregoing costly storage space. At the end of the day, for many construction firms, renting instead of buying heavy equipment is a net benefit for the company.

  2. Lack of storage space and capacity at the site, thanks to dense construction in big metros and tight legal norms.

  3. Difficult to find skilled human resources. We at SD Infra provides excellent services and trained men to work in unexpected situations.

How rental is important for your construction company?

The key factor here is to understand how to maximize the revenue of equipment on rent. If you realize that some costs are directly related to the rental of the asset (cleaning, maintenance, etc.), but they are many other costs that are somewhat fixed (depreciation, labor, admin, etc.). In order to maintain a profitable business, you need to understand how to maximize the revenue on every rental transaction.

Lastly, you need a good consultant that can advise and suggest several things that can prove very handy in times of on-site problems.

SD Infra has accumulated an experience of over 25 years in the field of equipment rental for the construction industry. We will love to share our ideas and expertise with you.

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