The metal fabrication business requires the use of so many tools and equipment. Every tool you’re to use in your fabrication workshop must meet industry standards. To succeed, you need high-quality and reliable tools and equipment. However, you can’t possibly have them all, as that would prove costly for your business. This leaves you with the question of whether to buy or rent some of these tools.
Things to Consider Before Buying Or Renting Any Metalwork Tool
There’s no one-size fits all answer to whether you should buy or rent your metalwork tools. Deciding to buy or rent a piece of fabrication tool depends on many things beyond the cost consideration. You need to ask yourself, what do I intend to do with this tool? How long will this tool serve me? Do I have what it takes to store, operate, and maintain it? Is my company capable of affording this tool? Balancing between some factors will make a whole lot of difference.
Your business capital is one point you must consider before deciding to buy or rent any fabrication equipment. Ask yourself—does my business have enough capital to splash on this tool? While buying provides you with a one-time payment, the cost of steady renting can add up quickly, even costing more than the actual price of the tool. Also, the bought tool or machinery can be a huge asset to your fabrication workshop.
If you run a small-scale fabrication shop with limited cash flow, paying the rent for some tools is always better than spending a large chunk of capital to acquire them. However, the reverse is the case if you run and operate a large fabrication shop. Having a larger fabrication company with a huge cash backup makes it easier for you to decide to outrightly buy a fabrication tool, as it will always be an asset to your company. Also, considering other points like depreciation, tax, insurance, and tool maintenance helps form the buying decision for large fabrication businesses.
Rate Of Usage
Before you buy or rent a fabrication tool, you must determine how often you might be using the said tool. One big advantage of having your tool is that it will always be available for use, any day, any time. Imagine having an emergency project or an unexpected adjustment in project specification, but you don’t have the tool needed to make the immediate adjustment. Sounds bad, right?
Not having a metal fabrication tool or equipment you need when you need it is not good for your business. It is also a financial disaster to keep renting one tool repeatedly. Having the tool for a project helps build confidence within your team and tells the client that you’re well-equipped and ready to take on the project. Owning some of these fabrication tools makes it easier for you to win contracts.
Again, owning fabrication tools may only sometimes be right. So many things can go wrong when you’re handling a fabrication project. Therefore, determining how often a tool will be used in projects is very important.
The project length or how often you’d get such projects will also influence your decision to buy or rent a fabrication tool. For example, if you’re handling a short-term project with a lesser probability of landing such a project again or the project calls for some specialized tools and equipment, it makes more sense to rent than to buy.
Having the right paraphernalia to take on any project at any time helps you secure projects easily. It even pays more when such projects are frequent. If you’re working on a long-term or reoccurring project, then outrightly buying the necessary tools and equipment makes more sense. The ongoing cost of renting in such a scenario will drain your capital instead of helping you save more.
Cost Of Servicing & Maintenance
Another important point to consider is the equipment cost of maintenance. Metal fabrication tools need regular care and maintenance. Estimating how much it would cost to maintain when you buy them vs nearly the zero maintenance fees of renting is key.
A metalwork tool and equipment exposes you to operating costs, taxes, insurance, and maintenance costs. It will also push you to hire professionals to take care of the maintenance and repairs. With renting, you need not worry about tool maintenance and repairs, as they are all taken care of by the renting company. However, owning some metal fabrication tools will push your staff towards being experts in the equipment, thereby boosting your company’s image.
Inventory Storage & Control
You should also consider how to manage and store your fabrication equipment. If you don’t mind the tiny inconveniences and costs of storage and insurance, you’re good with buying some of your fabrication tools. But if you don’t want to be burdened by managing the equipment storage, insurance and other controls, go for renting.
Whether you decide to rent or outrightly buy them, you must understand that there are some metalwork tools that you must have in your fabrication workshop.
Pros Of Renting Fabrication Tools
It is cheaper for short term
Zero maintenance and insurance cost
Reduce handling, storage, and logistics cost
Access to the best available technology
Pros Of Buying Fabrication Tools
Cheaper over the long run
Increase your company’s assets
Boost your company’s image
Deciding to buy or rent a fabrication tool and equipment is a decision every fabricator has to make. It is a unique decision. What applies to one fabricator may not apply to you. If you’d use the tool more often, it makes more sense that you have our own. On the other hand, if the tool is needed for a one-off project, then renting is better. Carefully comparing the cost of the fabrication tool and the usage level will make the decision easier for you.
When it comes to getting the best and most reliable results from all metal fabrication projects, a well-equipped and professional metal fabrication company with skilled and experienced staff is all it takes. A&G Price has the best available teams and the most advanced fabrication tools to help you get the best from your fabrication projects in Australia. So get in touch with us today and experience the difference!