Forklifts are one of the most common equipment used in handling materials for both big and small warehouses. That said, entrepreneurs and business owners see them as an essential tool in moving goods.
If you are one of them and are deciding whether to buy or rent one, this article is for you. We will discuss whether hiring or investing in a forklift is more economical. So, ready your notes because we will look at the bigger picture of how your choice in spending for a forklift can affect your business.
Hiring a forklift
Forklifts are expensive, even used ones. That’s why some businesses prefer hiring rather than buying from second-hand forklift companies around town.
When you hire a forklift, you will only pay for the time that you will use it. There are no big upfront costs, unlike when you are investing in one. Furthermore, there are no operational costs involved. You don’t need to pay for regular maintenance or for keeping it in good running condition as it is typically the owner’s role to maintain the machine.
Renting a forklift for long periods of time may also appeal to some business owners as several companies that loan their forklifts offer special rates to those who will lease their equipment for a fixed period.
If you compute the costs of renting over that of buying, you will be surprised at how much money you can save. In short, hiring a forklift is great for business safety. It eliminates unnecessary costs, therefore minimising the risks.
Companies that benefit from renting forklifts are those that deal with small products who move them in small amounts. Businesses that can operate with manual manpower to transport boxes and parcels from one point to another can make do without a forklift.
On occasions when requests are plenty, bringing in the cavalry might be in order. But those that do not deal with heavy lifting or bulk movement of goods are better off hiring a forklift than buying one.
Buying a forklift
Some businesses see themselves reaping more benefits from buying a used forklift. And despite the upfront cost, it does have some advantages.
First is availability. When you own a forklift, it means that it’s available for use whenever you need it. You don’t need to book a schedule or wait for your turn. So, when a large shipment comes, you will have the ability to move it — whether it means shelving it or transferring it from the warehouse to the delivery truck.
Second is that it saves you and your business time. If you own a business, whether big or small, you will soon realize the value of time. If you buy your company a used forklift, your employees can be more efficient in carrying out their tasks than when lifting goods with their bare hands.
Another benefit is that you get an added asset. It increases the value of your business. As a physical asset, you can liquidate it anytime you need money, either by selling it or lending it.
Likewise, your staff also becomes your asset. In order to make good use of the equipment, you will have to train a few of your willing employees to become forklift operators. The skill they learn adds to the value of your company and contributes to its growth and development.
Companies that benefit from investing in these equipment are those that deal with bulk items and heavy products. The lifting and organising of large and heavy boxes will be easier, faster, and safer with a forklift around. That’s why despite the upfront cost, many business owners see better value in owning the machine — especially those that have bigger plans for their companies.
Which is the better choice?
Your decision will always be based on factors surrounding your business, these include the industry where you belong to, the frequency of your business dealing with heavy lifting and movement of goods, as well as your network.
That said, if you own a small business that deals in small products and light items, then you may see better growth in renting a forklift. You can save money because you only pay for it when there’s a need for it instead of being in a commitment to pay for the unit.
On the other hand, if your business deals with heavy goods and you see growth in it, then investing in a used forklift might be a more economical choice. It’s not as expensive as buying a new one and will offer the same value to your business.
