Excavators are without a shred of doubt among the most crucial heavy machine within the realm of the construction industry across the board. Among the various excavator types, crawler excavators belonging to the 10T to 40T operating weight category are the most popular for general construction projects due to not just the versatility of these machines, but also power, manoeuvrability and low ownership costs.
It is mainly because of these factors that construction equipment rental companies that offer heavy machines such as excavators for hire maintain large fleets of excavators that fall into large, standard or mini excavator weight categories. Latest excavator models present a range of choices for project managers and contractors when it comes to the efficiency levels of these machines (which are generally dependent on the project environment) that are often contrasted to operational and as well as ownership costs in the event that the machines are owned by these construction companies.
It is also important to note that in the past decade, most contractors and construction companies have partnered with construction equipment rental companies which eliminate the need for these entities to buy these costly machines. The current trend that has been proven to be efficient and effective in terms of cost and productivity is to take machines such as excavator for hire as opposed to buying them.
Most construction affiliated businesses that use excavators currently avoid owning these machines due to several factors. Among them includes bloated asset values that present low ROAs (Return on Assets) which become unattractive to potential investors as the company would seem inefficient compared to companies that own less assets in terms of machinery, but generate higher revenue.
Another factor that results in construction companies leaning towards rentals is the additional operational costs that will be incurred by the company when they own these machines, which include maintenance costs, transportation costs and storage costs. The high price of these machines also creates ‘dents’ in the company’s working capital which could potentially lead towards cash flow issues for the business.
The rapid urbanisation projects that are taking place within close proximity to congested areas in the outskirts of cities such as Melbourne has led to a significant surge in demand for smaller sized excavators that fall into the mini and midi excavator categories.
Mini and Midi excavator hire machinery demand has increased due to the performance aspects of these machines within the scope of projects in tight spaces. This is especially true for smaller projects such as home improvement projects, pool building and landscaping where the light weight of these machines plays a crucial role in maintaining landscaped grounds.
The cost of rentals for mini or midi excavator categories are relatively low and given the fact that the latest models may be small, but most pack a punch in terms of power which allows operators to complete their tasks much quicker.
In summary, the entire sphere of the excavator business is focused mainly on productivity from every possible angle.