Several expenses come with owning construction equipment, such as maintenance, insurance, transportation and storage. Specifically, storage costs account for about 0.5%-1.5% of your average annual investment.
A robust storage solution is critical to prevent theft or weather-related damage to your equipment. However, extensive storage facilities with enhanced security measures can be costly, significantly increasing your overhead. The more equipment you own, the more barn or warehouse space you’ll require to organize and secure your fleet.
For equipment you don’t regularly use, renting these units can be a great way to free up space and reduce storage expenses. Many groups can save valuable square footage by renting heavy equipment, such as construction companies, farmers, homeowners and facility owners. Here is your complete guide to preserving space with rental equipment.
Jump to Section:
- An Overview of Construction Equipment Storage Options
- The Average Cost of Heavy Equipment Storage
- Factors Affecting Equipment Storage Costs
- How Renting Equipment Can Maximize Your Space
- The Space-Saving Benefits of Equipment Rental
- Other Advantages of Renting Equipment
- Space Optimization Strategies for Tools and Equipment
- Cut Down on Equipment Storage Costs by Renting Equipment From MacAllister Rentals
An Overview of Construction Equipment Storage Options
There are several options for storing heavy equipment. You can rent or purchase an indoor space — such as a garage, self-storage unit or warehouse — to house equipment, tools and other construction supplies. Some locations allow you to rent a workshop unit to complete projects. While more costly and time-consuming, building your own self-storage facility is another option.
Outdoor storage is also a possibility, such as fenced storage yards. However, this is usually recommended as a temporary option. Equipment shouldn’t sit outdoors for prolonged periods due to the effects of fluctuating temperatures and weather conditions. Canopies and temporary shelters only offer short-term protection for heavy equipment. That’s why it’s a good idea to have access to a fully enclosed indoor structure, such as a warehouse or barn.
The Average Cost of Heavy Equipment Storage
Equipment storage costs will vary depending on the storage route you pursue. To accommodate larger construction equipment, you’d likely need to rent or purchase garage or warehouse space, which is an expensive route. When calculating the monthly rent for warehouse space, you typically need to multiply the average base rental rate by the total square footage you require. Plus, you’ll need to add your estimated maintenance and operating expenses.
The rental price of a warehouse will vary depending on the facility’s location. By the end of 2023, the average warehouse rental price was $9.72 per square foot.
How Much Does It Cost to Build Your Own Equipment Storage Space?
In comparison to renting or purchasing the space, constructing a warehouse can cost upwards of $200 per square foot in some locations. A small 30×40 warehouse can cost around $35,000 where building costs are lower. Meanwhile, a 50,000-square-foot warehouse can easily cost over $1 million.
A homeowner or farmer with heavy equipment might consider building a barn on their property for extra storage space. The average cost to build a machine shop starts at about $45,000. Depending on how many tools and pieces of equipment you need to store, you may spend up to $600,000 for a commercial storage space.
Factors Affecting Equipment Storage Costs
Multiple factors can influence storage costs, such as the site location, building materials and labor costs. For example, the cost of steel can fluctuate constantly, or the area where you’re building the warehouse could be facing a labor shortage. Variables to consider include:
- Equipment and storage unit size: Storage facilities typically offer rentable units in various sizes, from small containers to spacious warehouses. Naturally, a storage unit’s cost increases with size. Storage centers usually charge customers by square footage or the size of equipment being stored.
- Location: The location of the storage facility can also influence the price tag. Urban areas and cities with high real estate costs generally have higher storage rates than rural locations.
- Storage period: The longer you plan to store your equipment, the higher your rates will be. Many storage centers have minimum duration requirements. Some offer discounts for longer rental contracts.
- Indoor versus outdoor storage: Due to added features like climate control, security measures and protection from the elements, indoor storage facilities normally cost more than outdoor storage options.
- Security features: It’s a good idea to choose a high-security site to ensure maximum protection for your equipment. Many storage facilities have robust 24-hour security protocols. However, some may charge customers slightly more to cover these overhead costs. Facilities with advanced security measures like surveillance cameras, access control systems and security guards will likely have higher storage rates.
How Renting Equipment Can Maximize Your Space
When purchasing construction equipment, you must figure out where to store it between projects. Heavy equipment occupies considerable space. Monthly storage fees can quickly add up if you don’t have your own space to store heavy equipment. Long-term storage contributes significantly to construction equipment ownership costs. That’s why many individuals and companies choose to rent equipment for their short-term projects.
Say you require an excavator for a project, but you don’t have the space to store it or an ample budget for long-term storage. By renting the excavator instead of purchasing it, you would only need to store it for a few days or weeks, depending on how long you require the excavator. As a result, you can drastically reduce storage costs.
Then, you simply return the unit to the dealership once you’re done. You can even arrange for the rental company to handle delivery and pickup as part of your rental agreement. This can help you avoid additional transportation fees.
The Space-Saving Benefits of Equipment Rental
Renting equipment can save money, time and space, helping you maintain an efficient workflow. This makes it a viable solution for many businesses and landowners, especially those who don’t regularly use the same equipment for projects and only need these units for temporary, specialized tasks. Here are some space-saving advantages of renting equipment:
- Extra space: Renting your heavy equipment can free up storage space for other items, such as tools, livestock feed, building materials and aggregates.
- Reduced storage requirements: By only renting equipment when your projects require it, you aren’t responsible for storing it when it’s not in use. You don’t have to worry about investing in costly long-term storage, such as building a barn or renting out a warehouse. This is especially beneficial for businesses with space and budget limitations. It’s also ideal when you use equipment seasonally. For instance, you wouldn’t need to store a snow plow long-term if you only rent it during winter.
- Flexibility: Renting lets you obtain the necessary equipment for temporary projects without the investment of long-term ownership. This flexibility is ideal if your project requirements constantly change or you only require equipment occasionally.
- Reduced maintenance needs: You don’t normally have to worry about maintenance and repair costs when renting equipment. These services are usually included in the rental contract. As such, you don’t have to allocate extra space to spare parts, tools and equipment to perform repairs. You can also avoid the additional maintenance costs of maintaining the storage area or land.
Other Advantages of Renting Equipment
Rental equipment provides several other benefits in addition to lower storage requirements and costs. Here are some other perks of renting equipment for your short-term project needs:
1. Support Changing Project Demands
As construction companies grow and expand their services, they must diversify their equipment fleet to handle new project types. Trying to complete jobs that are incompatible with your current equipment can be a hassle. The same goes for using attachments outside of their intended purposes. For example, a telehandler can be a safer and faster alternative to using a loader attachment for heavy-duty material lifting.
Renting provides an efficient way to obtain the necessary equipment on short notice. This makes it easier to manage fluctuating workloads and project specifications.
2. Lower Upfront Costs
Rather than paying more upfront to purchase equipment, renting allows you to pay a lower amount since you’re only using the unit temporarily. This feature makes rental equipment ideal for companies with limited capital to spend upfront.
3. Capability to Try Before You Buy
Renting lets you test different equipment models, attachments and features. If you’re wondering whether a specific unit will work with your projects and tasks, try renting one before committing to a purchase.
Note how well the equipment works for the job, its ease of use and other factors that may impact your buying decision. That way, you can feel more comfortable about your investment and prevent buyer’s remorse.
4. Tax Breaks
Renting equipment is an excellent opportunity to save during tax season. Equipment purchases and rentals affect your tax returns differently.
Owned equipment is considered a business asset, while rented equipment is a business expense. When buying equipment, you write off its depreciation every year. Renting equipment gives you a larger, more consistent write-off opportunity. You can deduct each expense you pay for your rental equipment, including rental fees, delivery costs and insurance.
5. Modern Features and Technology
A common misconception about rental equipment is that you can only rent older models with outdated features. On the contrary, many rental inventories enable access to newer models and technology.
Features like grade control and remote fleet monitoring help enhance safety and productivity on the job. You can also note essential features to look for if you plan to purchase equipment after renting.
Space Optimization Strategies for Tools and Equipment
Renting equipment can help you optimize your space and keep storage costs to a minimum. Other storage strategies can help you achieve this goal, as well. Whether you store your tools, equipment and supplies in a warehouse, barn or garage, you’ll want to make the most efficient use of your facility.
Here are some other tips to maximize your storage space, minimize clutter and maintain an organized layout:
1. Declutter Your Space
Start with a full cleanout of your storage facility and remove items you no longer use or need. Organize your remaining tools and equipment by grouping similar items.
2. Use Labels
Labeling your storage units — such as containers, bins and shelves — can help you maintain a clear, organized storage system. This strategy makes it easy to locate and access items as needed.
3. Install Shelves or Racks
Using racks or shelving systems allows you to leverage vertical space in your storage facility. These solutions are ideal for attachments and tools, such as drills, saws, hammers, compact power generators and air compressors.
This storage approach frees up valuable floor space for larger equipment that can’t be stored on shelves. Adjustable shelves can also help you tailor your storage space to accommodate the shapes, sizes and heights of different items.
4. Take Advantage of Wall Space
Wall-mounted racks, pegboards and hooks are great for hanging and storing construction tools. Like shelves and racks, they help avoid wasted floor space. You can also easily grab these tools off the wall when necessary.
5. Use Containers or Bins
These units are ideal for storing smaller tools and devices. Transparent storage bins make it easier to see what’s inside, saving the time and effort of opening the containers. Stackable shelves can also optimize space. You can use them for various items, including tools, smaller equipment and other supplies.
6. Leverage Underused Space
Taking advantage of unused space is another way to free up valuable floor space. For instance, if there’s room on top of shelves, you can use this extra space to store less frequently used items.
7. Rotate Seasonal Tools and Equipment
There may be certain items you only use seasonally, such as snow plows during winter or landscaping equipment during warmer months. Consider rotating these items in and out of your primary storage space, if possible. You can store them in a separate area until they’re needed, helping free up space.
Cut Down on Equipment Storage Costs by Renting Equipment From MacAllister Rentals
Renting equipment can be an excellent way to avoid major storage fees. If you’re looking to rent equipment in Indiana or Michigan’s lower peninsula, MacAllister Rentals can match you with the right solutions.
We have a wide range of options to choose from, including earthmoving equipment, aerial lifts, material handling units and more. You can also contact us online or call (877) 700-1945 for a free quote.
Explore our vast inventory of rental equipment, then find a dealer near you today!
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