Depending on the type of construction company you operate, your equipment requirements will vary. But the factors affecting your plans for fleet growth are the same. Your choices of equipment for fleet growth and your current and expected equipment utilization have an impact on your bottom line, cash flow, and capital requirements. And when it comes to construction equipment solutions, it’s your bottom line that counts.
So how can you scale your fleet most profitably? Start by looking at the condition of your existing equipment. How does your equipment’s efficiency impact the productivity of your operators? Inefficiencies can lead to higher labour costs.
If you’re experiencing high unplanned downtime, it’s probably time to think about replacing your equipment. Similarly, high maintenance costs can have a significant negative impact on your bottom line. Newer, more efficient equipment will reduce downtime and improve profitability.
On the other hand, if your existing equipment is underutilized, it might be wise to sell it and consider renting to meet your requirements.
Here are the factors you’ll need to consider when deciding how to grow and maximize the efficiency of your fleet:
Buying versus renting
Buying is a good choice for machines that are used all or a majority of the time. Renting or leasing may be the best option if equipment is only needed for one or a few projects. It’s also a good way to test out equipment and technology before deciding to invest.
If equipment is only required for a specific project, one of the less-expensive construction equipment solutions might be to use a subcontractor who has the necessary machines.
New versus used
In many cases, well-maintained used machines can be just as efficient as new models and cost considerably less.
Renting and, in some cases, leasing may provide higher writeoffs than buying new equipment, for which you can only deduct depreciation.
Some larger Cat®equipment is built to be rebuilt. A rebuild strategy can significantly lower the total cost of ownership of your equipment. Before purchasing your machine, look at factors such as the intended use, your uptime requirements, and how long you anticipate it to remain in your fleet. This will assist us in helping you plan a maintenance and rebuild program.
There are a number of technological options that can improve efficiency, such as GPS grade control, maintenance software, fuel card software, and GPS tracking.
When it comes to construction equipment solutions, there are always options. Talk to us about your needs, and we’ll help you find the right way to grow your fleet.
Finning is the world's largest Caterpillar dealer, selling, renting and providing parts and service for equipment and engines to customers across diverse industries, including mining, construction, petroleum, forestry and a wide range of power systems applications. We operate in Western Canada, South America, and UK and Ireland.