Renting vs. Buying Surveying Equipment: What Is Best for Your Business?

Surveyors are essential in many industries and need extensive equipment to perform efficient and accurate work. The right survey equipment makes it easier to stay competitive in a rapidly changing landscape, so deciding whether to rent or buy is a significant business decision. Each option has clear benefits and drawbacks, and choosing the best alternative for your business depends on your unique situation.

An Introduction to Surveying Equipment Solutions

Surveying equipment is an integral tool in many industries, measuring and mapping the Earth's surface for digital twin images essential for design, asset inventory, and asset management. One specific use case is in construction, where surveyors are tasked with marking reference points to maintain accurate structure orientation, which is crucial for compliance.

Today's survey equipment comprises a range of traditional and advanced technologies, from levels to global positioning systems and unmanned aerial vehicles, or drones. With an accurate digital rendering of real-world land dimensions, you can determine the best planning and design strategy, from outlining major infrastructure projects to expanding commercial and residential properties.

Access to innovative survey equipment solutions provides precise measurements of various terrains, including existing structures and environmental conditions, making the equipment an indispensable engineering and environmental management tool. These tools are critical to many large-scale infrastructure projects, including mining, transportation, and land management.

The Costs of Buying vs. Renting Equipment

The decision between renting or buying survey equipment is essential for many businesses. For most, the first consideration is cost. Each option has financial pros and cons, depending entirely on your business needs.

Initial Investment and Long-Term Savings

Buying survey equipment represents a significant upfront investment, but it's also an investment in your business's future. You are adding an asset to your inventory. If you maintain and care for it, it could mean considerable profitability in the future. Depending on how often you use the equipment, a purchase could result in long-term savings if you use it regularly. However, the cost of acquiring the latest technology could be prohibitive.

Surveying equipment often has a high resale value if well maintained, meaning you could recoup some of your initial investment when you upgrade or sell. This value can offset the cost of upgrades, making the upfront investment easier to manage. One of the other benefits of purchasing equipment is potential tax advantages, including incentives for capital investments and depreciation deductions, which further offset the upfront purchase costs.

When you invest in equipment for your organization, you must also factor in the storage and transportation costs. These responsibilities and additional costs add up, especially if you use the equipment sporadically. The funds you use to purchase equipment are tied up in physical assets, which may impede your ability to invest in other areas.

Flexibility and Cost-Effectiveness

Renting survey equipment also has financial advantages depending on the situation. One of the principal benefits of renting equipment is access to advanced equipment without a significant initial investment. You can conserve capital by paying for what you need when needed, which is particularly appealing to new or small businesses. Renting also means you avoid the costs and logistics associated with long-term storage.

Your rental expenses are often fully deductible as a business expense in the year the rental occurred, providing immediate financial benefits. You can also try various models before you purchase, finding the most suitable option for your business scope and applications. Additionally, you may be able to access the most updated equipment.

However, if you rent equipment regularly over long periods, your long-term costs are invariably higher as the rental fees accumulate. When you rent, you are not building asset equity in your businesses. The equipment only offers a return on investment during the rental period.

Equipment Upkeep and Maintenance

Maintenance and upkeep are essential for keeping surveying equipment in working order. Purchasing or renting survey equipment means different levels of responsibility for the equipment you use.

Renting survey equipment means you have minimal maintenance responsibilities. While you are responsible for keeping the equipment in good condition while you use it, your rental provider covers the cost of maintenance on the machines. If equipment breaks down during a project, your rental provider will likely provide a replacement.

In contrast, when you own surveying equipment, you are entirely responsible for its maintenance and repair. Regular inspections, maintenance, and repairs are essential to keep the equipment accurate and functional, which can result in significant costs over time. You must also factor downtime into the equation. If your owned equipment breaks down, you may have to pause projects until they are functional again, impacting your operational efficiency and profitability.

Access to the Latest Survey Equipment

Every surveying operation benefits from the latest technology, but you must consider whether it is necessary for your specific operation. Whether you rent or buy your equipment, you have some advantages and drawbacks to consider.

Renting offers access to the latest surveying equipment and technology without the depreciation concerns of ownership. You can use this technology to boost project accuracy and efficiency and test new machines without any commitment aside from your rental terms. You can also select equipment purpose-built for your projects, which is essential for tasks requiring specialized tools that you complete infrequently. As your project needs to evolve, you can adjust your rental agreement to ensure you always have the necessary tools.

One of the main benefits of purchasing equipment is that it is available whenever you need it. Rentals are based on availability, and you may experience delays for popular technology. Having constant access to the relevant tools is vital for projects with tight deadlines. It also allows you to accept last-minute projects without the additional planning associated with a rental. Additionally, having equipment readily available allows for a temporary increase in capabilities, as you don’t need to halt productivity while waiting for rental equipment to arrive.

Owning your equipment also means you are free of any terms and conditions regarding how and when you use it. It eliminates concerns like usage restrictions, fluctuating rental rates and unpredictable availability.

Making the Right Choice for Your Business

Whether to rent or buy depends on several factors unique to your business. With the above information in mind, consider the following:

• Frequency of use: The first thing to think about is how often you will use a piece of equipment. If you will use it regularly, making a purchase makes sense. You'll always have access to it, allowing you to use it for multiple projects and boosting your return. If the equipment is highly specialized and you're only likely to use it for a handful of projects a year, renting avoids your upfront investment sitting in storage.
• Budget considerations: Your decision to rent or buy should always make financial sense for your business. If you are a new business or still growing, a significant investment in equipment could be detrimental to your bottom line, especially if its usage is limited to specific projects. It may make more sense to rent until your business is in a position to purchase without affecting your liquidity.
• Future-proofing and scalability: Your business will likely grow and change over time, and your equipment needs will change to reflect this growth. Purchased equipment should be easy to upgrade and expand as your needs change.
• Training requirements and usability: Surveying equipment features many advanced technologies that can make it challenging to use. Consider how easy it will be for your team to acclimate to the new equipment, whether renting or buying. For example, if you rent and your operators spend days training, it could impact your overall bottom line. Making a purchase gives your team more time to get to know complex equipment, which can streamline operations in the long term.

Find the Latest Surveying Equipment With Duncan-Parnell

In today's competitive landscape, having the right survey equipment can keep your business ahead of the curve. At Duncan-Parnell, successful projects start here.

Depending on your unique needs and project scope, we offer various surveying solutions for rent and sale, plus service, training and support on all products, helping you from field to finish and streamlining your workflows so you can make the most of each investment. Contact us to learn more about streamlining your operations and cutting costs today!