Demand fluctuates in nearly every industry. Warehouse operations will go through cycles of peaks and valleys throughout the year as well. With those fluctuations, two negative effects can happen:
- In peak times, facilities may not have enough capacity.
- In less-busy periods, equipment may sit unused for weeks or months.
Each of these issues can affect your overall cost efficiency and bottom line. Seasonal forklift rentals are an ideal way to counteract those negative effects. You also get more control over the equipment you keep on hand and greater flexibility to match resources to volume.
Read below for 5 key reasons why you should rent heavy lifting equipment and how it benefits your operations.
Greater Flexibility When Choosing a New Supplier or Model
Seasonal rental allows you to fully integrate equipment into your operations — beyond just a trial basis — while also retaining the flexibility of a rental agreement. If your operation’s product flow or warehouse layout has changed, you may want to look into a new forklift manufacturer or a new model. Since a forklift rental provider will offer a full and diverse forklift rental fleet, it is a great opportunity to try different types of equipment without a purchase commitment.
Reduce Capital Investment Costs
Purchasing new equipment can mean that you tie up capital for years. While some increases in operation volume may be more predictable and cyclical, other peaks may occur unexpectedly, with no guarantee to continue or recur.
Purchasing new equipment to respond to such a surge may turn out to be an inefficient investment with flat or negative return. Temporary forklift rental offers a much less risky way to manage warehouse operation surges, while still giving you the option to purchase equipment later.
Simple and Predictable Costs
With seasonal forklift rentals, you know the cost of your equipment up front. In contrast, when you purchase equipment, it often leads to additional expenses and logistics requirements, including financing charges, maintenance and repair costs (which can be unexpected and pricey) and storage costs. With temporary forklift rental, you are not responsible for any of these added costs (unless you damage the equipment). This gives you more predictable and accurate financial forecasting and more freedom with your bottom line.
Shorter Lead Times to Obtain Equipment
The approval process and purchase decision itself can be time-consuming. And once you finally place the order, you have to wait for the delivery of your new equipment. In some cases, the window to address a production surge may not be compatible with standard purchase delivery times if a unit is not in stock. Forklift rentals, on the other hand, are ready when you need them and enable you to quickly react and respond to day-to-day changes in your operations.
Easy Equipment Removal
One of the primary benefits of a seasonal forklift rental is the flexibility to send equipment back once it is no longer needed. After your busy season or surge period ends, you are able to return the equipment to the rental provider. The company will also pick up and transport the machine for you.
For expected or unexpected peaks in production and demand, forklift rental provides significant benefits for your operations. While buying or leasing equipment is the right choice for many situations, consider renting forklifts as an effective way to handle short-term increases in production.