As technology continues to advance exponentially, adaptability is key to business success. For industrial companies, it’s not economical or logical to consistently replace large, heavy pieces of machinery or plant-like cranes every time a new piece of technology comes along because these items are large capital investments.
For companies that know their needs are often changing, it sometimes makes more sense to rent a crane than to buy it outright. There’s no large upfront capital investment, making your crane an operating expense. Monthly fees can be consistent and monitored, and it’s easy to upgrade when needs change.
On top of that, Konecranes has recently launched a new product, RENTALL, which includes all servicing and maintenance as part of the rental agreement, to help customers control equipment and maintenance costs, and provide freedom and flexibility to concentrate on their core activities.
The major advantages of renting a crane include:
No large upfront costs: Not having to pay a large upfront capital investment can be highly beneficial as those funds can be allocated elsewhere while production can start immediately, and income can be generated to help offset the monthly rental fees. The cranes become an operational expense rather than a capital investment.
Easy budgeting: An all-inclusive fixed monthly amount means that budgeting around a crane is made simple. Service and maintenance fees won’t fluctuate either, because that’s all included in the fixed monthly amount.
Adaptability: Adaptability is often considered to be the most important and useful advantage of renting a crane because it can drastically improve how quickly a business can respond to changes. Production may need to increase, a new product with new specifications may be added to the production line, or operating conditions may change. These are just three of many examples where new or different cranes may be needed to handle changes in a business.
With a rental agreement in place, the cranes can be swapped or updated according to business needs, without having the significant costs associated with replacing equipment that is owned outright.
Service is included: Having service included as part of the monthly rental agreement is not only a big advantage in terms of budgeting, but also in terms of the operating efficiency of a crane. Konecranes provides preventative maintenance, routine maintenance, TRUCONNECT real-time remote monitoring and 24/7 on-call service in its all-inclusive RENTALL package.
Most effective cranes for rental agreements
Konecranes’ range of CXT wire rope hoists are ideally suited to a wide range of industrial applications, such as construction and infrastructure, manufacturing and materials handling, energy, and oil and gas. CXT is the industry leader in medium to heavy-lifting cranes and comes in lifting capacities of up to 80 tonnes.
Smaller, lighter workload CXT models such as the CXT Neo with lifting capacities up to 12.5t and CXT Explorer with lifting capacities up to 6.3t are well suited to rental agreements because they are easy to install, and easy to dismantle and replace or upgrade. The CXT explorer can even be used outdoors and can be delivered conveniently in a standard shipping container.
What happens next?
Once a rental agreement is over, there are three options for how to proceed:
- The rental agreement can be continued for a term negotiated by both parties
- The equipment can be purchased for an agreed price. This option is particularly useful if a rental agreement was advantageous in the initial establishment of a business, but since expansion production needs have stabilised and it’s likely to continue with the same lifting needs for the foreseeable future.
- Return the equipment
This partner content is brought to you by Konecranes. For more information, visit www.konecranes.com.au/equipment/overhead-cranes/rentall.