Give the current state of the entire construction industry in and around the Melbourne region it becomes quite evident that construction companies need to reassess their business strategies and account for current economic conditions. Maintaining a healthy working capital structure and a cash flow pattern that is positive is critical towards ensuring the sustainability of construction companies. Among the strategies that most construction companies have moved towards includes using equipment that are hired on a daily or weekly basis to execute their respective construction projects.
This method is much more cost effective given the fact that machines such as mini excavators or Cormidi mini dumpers are rather expensive not to mention that there are also significant costs involved in their maintenance. This has led to the rise of companies such as Scoop Hire that provide unique services such as excavator rentals for construction companies that would not be able to justify their R.O.I (Return on Investment) factor in the event they move towards purchasing these machines at incredibly high costs that could easily cost more than an entire project.
For example, the cost of a mini excavator could easily come up to about $60,000 whereas renting it would cost only on average about $200 per day depending on the type of excavator and the duration that it is hired for. If we were to take the $60,000 and divide it by $200 (the average daily rate for mini excavators) that would amount to 300 days of using a machine continuously without having to worry about maintenance or having an operator on payroll.
This is in essence is a tremendous cost saving factor as when the construction company ‘owns the machine’ there will be a significant number of days that the machine will be left unused which means that the money invested in it is not providing any returns each time the machine is unused and subjected to degradation. For more information on mini excavators for hire just click to visit the Scoop Hire Keilor East website or alternatively call (03) 9052 4473. It is critical for construction companies to revise their business strategies and adapt to current industry conditions.