Contractors constantly work to control costs, stay efficient, and keep jobs moving. Equipment plays an important part in how all of these factors play out.
When new jobs or growing teams require equipment you don't own, it's time to weigh the benefits of owning versus renting equipment. But the answer can vary based on your business and workload.
Contractors working across the Midwest construction industry often deal with shifting job types and seasonal demand, which makes flexibility a key part of the decision. Bierschbach Equipment & Supply is a trusted construction equipment dealer in the Midwest, offering new, used, and rental equipment options to meet the needs of all operations.The Real Question: How Often Do You Use the Equipment?
Purchasing equipment means it is available at a moment's notice without coordinating with a rental company or working around availability issues. For core equipment that goes on most of your jobs, reliability is more important.
You're not paying rental fees every time you need it, and over a long period, the total cost of ownership can be more economical than stacking up rental costs on equipment you use constantly.
But equipment ownership comes with a long list of tradeoffs. Upfront costs, insurance costs, ongoing maintenance, repairs, storage space, and transport all fall on you.
When something breaks mid-job, downtime is your problem to solve. Ownership works best when the equipment is earning on a regular basis and not sitting between jobs.
What It Looks Like to Own Equipment
Purchasing equipment means it is available at a moment's notice without coordinating with a rental company or working around availability issues. For core equipment that goes on most of your jobs, reliability is more important.
You're not paying rental fees every time you need it, and over a long period, the total cost of ownership can be more economical than stacking up rental costs on equipment you use constantly.
But equipment ownership comes with a long list of tradeoffs. Upfront costs, insurance costs, ongoing maintenance, repairs, storage space, and transport all fall on you.
When something breaks mid-job, downtime is your problem to solve. Ownership works best when the equipment is earning on a regular basis and not sitting between jobs.
Cost: More Than Just the Price Tag
The initial cost of buying equipment is the number most contractors compare first, but it's rarely the whole picture. With owning, you have the purchase price plus insurance costs, maintenance and operating costs, repair risk, and the capital tied up that could be working capital elsewhere.
There are also possible tax implications, though the tax benefits of ownership, including depreciation and potential capital gains tax considerations, can shift the math depending on your situation.
Rental costs are predictable but recurring. The costs can include other fees, availability timing, and the fact that you build no asset value over time.
Thinking in terms of total job cost rather than sticker price gives you a clearer read on which option actually makes financial sense for each piece of equipment.
Where Most Contractors Land
Most contractors settle on owning the equipment that earns consistently and renting what doesn't. Skid steers, compactors, and other commonly used construction equipment that go to work on most jobs are worth owning.
Large or specialized equipment that shows up on several jobs a year or less usually makes more sense to rent.
This keeps cash flow flexible, reduces the risk of owning equipment that sits, and lets you take on various projects without overcommitting capital. It also gives contractors the ability to adjust quickly when project types or timelines change.
It's not a perfect split, and it shifts as the business grows, but it's the most practical starting point for most operations.
Making the Right Call for Your Business
The right decision comes down to your workload consistency, the types of projects you run, and where your business is in its growth. A contractor building out a fleet looks at this differently than one managing a lean operation with a few core crews.
Think in terms of what the next two to three years look like, not just the current job. The company's current situation matters more than a general rule about renting vs. buying.
Get the Equipment You Need, When You Need It
Bierschbach Equipment & Supply provides construction equipment rentals, sales, and service across the Midwest, with locations in Sioux Falls, Rapid City, Sioux City, Fargo, and Dickinson. Having multiple locations across the region can help contractors get equipment faster and keep projects moving without long delays.
Whether you are ready to buy equipment for your core fleet or need construction equipment rentals near you for a specific job, inventory is available when you need it. Contact the team or browse current inventory to find what your next project needs.
FAQs
How do you decide what equipment to own versus rent?
Most contractors base the decision on how often the equipment is used and how critical it is to daily work. Equipment used on most jobs is usually owned, while less frequent or specialized equipment is rented.
What are the biggest risks of owning too much equipment?
Idle equipment still carries costs through maintenance, storage, and depreciation. If machines aren’t consistently in use, they can limit cash flow instead of supporting it.
How does renting equipment help with project flexibility?
Renting allows contractors to bring in the right equipment for each job without being limited by their current fleet. It makes it easier to take on different types of projects without long-term commitments.
Does equipment availability impact job timelines?
Yes, delays often happen when the right equipment isn’t available when needed. Working with a supplier that has local inventory helps reduce downtime and keeps projects on schedule.