With the prospect of new infrastructure projects as part of the Biden Administration’s infrastructure bill, commercial contractors throughout the nation are clamoring to claim a stake in the campaign. While it’s easy to assume a new piece of machinery will solve your job site challenges, give you the competitive edge in being awarded a contract, or be the “game changer” you’ve been looking for to really grow—and that may be partly true—but before running out and picking out a nice $300,000 piece of construction equipment, let’s weigh your options and determine if now is the right time to invest in new equipment.
On and off the job site you’re trained to think about safety and liability. Assessing your current equipment is no different. If your current equipment is worn, doesn’t conform to mandated or adopted safety standards, or has become a liability due to poor reliability, then you have a sound reason to look for a replacement. Wear and tear is a significant contributor to construction equipment’s overall safety. This includes worn mechanical components, electrical failures, leaks, and rust, corrosion and physical damage. If I just described your equipment, give us a call to talk funding.
Most new equipment has greater productivity, and operates with greater precision than predecessors, and often will include greater sensors and monitoring for preventative maintenance. With a finger on the pulse of your new equipment, you can schedule preventative maintenance during off-peak days to minimize downtime during projects, thus reducing delays.
It’s also worth mentioning, the off-lease equipment space offers great deals on recent equipment that’s been well-maintained. Buying used construction equipment can get you the technology and performance update you’re looking for at a great price, and depending on the equipment age, is likely eligible for attractive construction equipment financing terms.
Deciding on a new equipment purchase is not without concerns. Typically, the first concern is cost: you’ll likely have to take on a monthly payment, however with a healthy construction industry and attractive financing rates, payments on your new machine should be more than manageable, depending on your credit and downpayment. The next hurdle is training employees to safely use the new equipment. Some have adopted a regular training schedule for employees covering everything from safety to equipment operation and certification, while others rely on 3rd party standards such as OSHA’s own program, where they send employees to train and re-certify annually.