Starting a Heavy Equipment for Hire Business

Summary: Learn some basic information you need to know before putting up a heavy equipment for hire business. Get an overview of how the equipment leasing business operates and find the commonly used heavy equipments.

In essence, the equipment for hire business involves two parties: one, those in need of heavy equipment and two, the company that rents out heavy equipment.

These machineries are very costly and they are usually used only once and only for a short period of time. To be practical, instead of purchasing, most businesses turn to equipment leasing companies to solve their heavy equipment requirements.

The agreement between the lender and the lessee usually last for a specified time period and the charge is a flat monthly rate. Typically but not always, these equipment are used for construction or earth moving projects.

Commonly Used Heavy Equipment

Loader –This is a type of wheeled tractor that is fitted with a square tilting bucket in front. The bucket is attached to movable “arms” and is designed to carry load. The bucket can be replaced with other tools such as forks or clamshell buckets. There are two variations of this equipment. One is the skid loader that is a more compact version with only four wheels. The other is the track loader. Instead of wheels, it makes use of tracks for better ground hold and rough terrain mobility. Primarily, loaders are used to transport heavy materials.

Excavator – This equipment possess a long mobile arm with a bucket at the end. The cab where the operator sits can be found on top of a rotating platform. Typically, excavators are used for digging, handling materials, demolition work, and dredging. Some types of excavators are as follows: bucket-wheel, backhoe loader, dragline, long reach, skid steer, and suction excavator.

Crane – this equipment is a lifting device that possesses sheaves, wire ropes, and a winder. It is used to lift and lower load and then move them laterally.

Bulldozer – this equipment is a type of crawler or tractor that is fitted with a metal plate or dozer blade in front. This is used primarily to shove large amounts of earth materials. It has wide tracks because for excellent traction since it uses its own weight to push heavy materials.

Heavy Equipment Manufacturers

You can buy your heavy equipment directly from the manufacturer. Following is a partial list: Atlas Copco, Bell Equipment, Caterpillar Inc., CNH Global, Deere & Company, Demag, Doosan Infracore, Euclid, Fiat-Allis, Hitachi Construction Machinery, Hyundai Heavy Industries, Ingersoll Rand, Koering, Komatsu, Kubota, Madill, Navistar International Corporation, Orenstein and Koppel GmbH (O&K), Pierce Pacific, Poclain, Rototilt, Skaggit, Terex, The Liebherr Group, and Volvo Construction Equipment.

Some Tips

To attract clients, a heavy equipment leasing company must make its presence known. Advertising therefore is a must.

Be patient and take time to answer your prospective client’s questions. Make them feel that you are there to meet their equipment needs because you want to help them and not because you see them as an opportunity to earn profit.

You need to have lease options available since this is what customers usually ask for.

Your quotes must be at par if not lower than that of the competition because more often than not, customers compare rates.