When compared to renting, buying real estate makes for a better long-term investment. However, when it comes to test and measurement equipment, the same logic does NOT apply.
Renting has had an image problem, the old view was that it is only something to consider if you couldn’t afford to purchase outright. That while renting was appropriate in times of a crisis, it was generally a better idea to buy.
This buying mentality has today’s manufacturers in a troublesome situation. The build-up of redundant equipment combined with a lack of capital due to expensive test and measurement equipment purchases, has limited business growth opportunities.
One of the perceived positives in the buyer’s mind is the misconception that when purchasing, the initial price is the only cost endured by the company. However, the Total Cost of Ownership (TCO) expands to include other elements such as: maintenance and calibration expenses, production losses during downtime, and interest on loans. Owning your equipment can also mean you miss out on the increased productivity that newer technology can deliver.
Long Term Rental (LTR) comes without these downsides. The only cost is the fixed rental charge and TechRentals have found that LTR can be up to fifty percent cheaper than buying. In addition, setup and calibration are covered, meaning that businesses can be sure their equipment runs from day one and meets relevant standards.
TechRentals tailors services to individual customer needs and also provides a streamlined upgrade path. So, unlike businesses that choose to purchase equipment, those with TechRentals’ LTR option always have the latest equipment, and benefit from the highest levels of efficiency and productivity.
These companies place themselves in an excellent strategic position to invest their capital elsewhere and are ready to meet the future demands of the Australian manufacturing industry.
Click here to find out more about the advantages of renting over buying.