Heavy Highway Contractor

Heavy Equipment rental vs ownership

  • 1.  Heavy Equipment rental vs ownership

    Posted 08-02-2013 14:12
    This message has been cross posted to the following Discussions: Heavy Highway Contractor and General Inquiries .
    I'm curious how other companies determine how much heavy equipment to own/purchase vs how much to rent.  Our fleet consists of mostly excavators/loaders/backhoes and we target a 50/50 split based on operated hours, just one of the reasons being we in theory could experience a 50% reduction in volume and at that point have mostly owned equipment running.  But how do other companies evaluate this?  What are the metrics you use?  Our rental $ is a big nut and I'm just wondering if we should maybe aim to own even more ... interestingly, our CPA argues the owned % should be even lower than 50%.

    Ron Jacobson
    Boudreau Pipeline Corporation
    Corona CA
    (951) 493-6780