EXPERT ADVICE
marketing and communications coor-
dinator with Carlson Paving Products,
Tacoma, Wash. “First, we see customers
that rent a paver when their machine is
down or in the shop for repair. Rather
than losing revenue and time, contrac-
tors without a backup machine will rent
in order to finish projects and maintain
consistent cash flow to their company.
“The second scenario is when a spe-
cialty project is bid and won. These
projects typically are utility or pathways.
Contractors will rent a specialty paver
to complete these types of projects, as
most do not have a pathway paver in
their equipment fleet. The third sce-
nario is municipal and governmental,
where long term leases are a preferred
method of machine ownership for large,
lengthy public works departments and
Departments of Transportation proj-
ects.”
The question paving contractors grap-
ple with is when is it best to rent black-
top equipment versus adding a new ma-
chine to the fleet.
“There are upsides and drawbacks to
renting or buying, but in the end the
determining factor ought to be based
on return on investment,” Colwell stat-
ed. “If you are a commercial contractor
that predominantly paves large parking
lots, but rarely paves pathways, it does
not make much financial sense to in-
vest in a pathway paver. Rather, renting
a pathway paver for a unique project
provides the contractor with the right
machine without the significant in-
vestment required. On the other hand,
if the contractor is looking to expand
into golf course paving or more path-
ways for a local municipality, investing
in a specialized paver for these projects
would be in the company’s best interest.
Investing in a specialized platform for
the company’s growing requirements
also allows for renting out that machine
to other contractors for an additional
source of income, when the machine is
not being used.”
If renting paving equipment makes
the most sense to meet the challenges
at hand, then the question becomes
where’s the best place to go?
The consensus among the experts
seems to be that contractors should start
with their local asphalt equipment deal-
er for rental, leases and purchases.
“Not many rental companies like to
rent small machines, the margins are
too slim and the cost of cleaning and
maintaining the machine after the rent-
al is too high,” said Sal Rizzo, president
of Salsco, Inc., Cheshire, Conn. “Best
to check with the company or dealer
where you buy your equipment.”
In conclusion, a rental provides a fast
solution for pursuing a project oppor-
tunity, temporarily replacing a machine
that’s in the shop for repairs, or trying
equipment with the most advanced
technological features to boost produc-
tivity and operating efficiency to help in
the decision of whether to invest in a
purchase.
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