Construction companies have come to realise the need to reassess business strategies and take into consideration the state of the global and domestic economy brought about by the pandemic. Almost everything we know has changed, from the way we live, work, socialize and run businesses. New business strategies are quickly becoming critical success factors and in line with this ‘need’ that we have identified, Scoop Hire offers construction companies a range of construction equipment for hire. This business strategy allows construction companies to maintain a strong working capital structure and keep their cash flow afloat which is the core of sustainability initiatives for construction companies large and small.
Using ‘gig’ like strategies such as using rented equipment on a ‘termed’ basis (daily, weekly or monthly) for construction projects on a “as and when needed” business approach has been found to be more cost effective than buying equipment such as mini excavators as long-term investments and asset accumulation. Using heavy machines or compact excavators instead of raw labour to save cost and time is just the tip of the iceberg as hiring excavators would also naturally mean removing the logistics involved with regards to maintaining these machines that could chalk up quite a bit on the balance sheets. It is based on this perspective that companies such as Scoop Hire come into play as they act as a component of the construction company that is independent and lift the ‘burden of equipment cost’ from construction companies to a degree that it improves the bottom line of construction companies holistically. The unique services provided by companies such as Scoop Hire which include excavator rentals justifies the ‘Return on Investments’ simply because purchasing these machines could cost more than the entire project. Let us take a step back and look at the cost of a mini excavator that hovers between $40,000 and $60,000 not including maintenance cost. Now buying these machines would seriously dent the capital structure of small, medium sized construction companies and create cash flow issues. On the other hand, obtaining excavators for hire from Scoop Hire would cost approximately $200 per day and if the project only requires 3 days of excavator use, which would amount to $600 in total, the difference in savings and ROI calculation is undeniably significant. Imagine if an excavator is only needed for one hundred days out of 365, which only adds up to $20,000 a year which still returns a savings of $20,000 which could be used as cash flow within the capital structure’s framework. Let us not forget the cost of maintenance, it all adds up and thus, taking a look at a mini excavator hire price in Melbourne as well as rental pricing on other assorted equipment would be a viable option in the scheme of things.
Contact us today and talk to one our staff crew or if you require more information on mini excavators for hire visit the Scoop Hire Excavator Hire website. It is imperative that construction companies look into their current business strategies and evolve with the times to remain relevant to the current conditions.