Should you rent or buy is always the question, isn’t it? In most cases, this question has proven to be difficult to answer straight when it comes to waste handling equipment. A lot of businesses are relying on waste haulers to take care of their industrial waste. But as recycling becomes more of a priority and the need for a waste services strategy increases, the conversations around equipment become relevant.
Waste handling costs are one of those expenses that can quickly spiral out of control. It is a necessary expense and you need to take care of recycling and other processes l to remain compliant and be sustainable. But at the end of the day, costs put pressure on the bottom line of the business.
As you begin to move towards a more comprehensive strategy for waste services, waste and recycling equipment become necessary to make sure that you are processing the waste before you transport it out and keep transport costs are in control.
So if you have to get waste handling equipment, should you buy it or rent it? Let’s explore both sides in some detail and understand when it makes sense to rent and when it makes sense to buy.
Why Do You Need Waste Handling Equipment?
Why do you need equipment in the first place? Can’t you just get your hauler to pick up waste from your facility and let them deal with it later at a material recovery facility or a recycling plant?
Yes, but often the case is that you will be paying your haulers a lot more than you need to. Their business model is not very transparent and issues like overcharging are a common occurrence. Most waste haulers work based on a contract for a particular amount of waste and even small amounts of excess waste can lead to additional charges for waste handling.
The other issue is recycling. You may ultimately not recycle enough of the waste materials you produce if you are simply relying on waste haulers. Some of the recyclable materials that you may be producing are not recovered from the waste and end up being sent to landfills. You may be paying a recycling fee without having your materials recycled..
Transportation costs are also a consideration. Unprocessed waste materials tend to take up a lot more space than baled, shredded, or compacted waste. If you do not do it at your facility, the waste materials end up occupying more space in your facility and you will need more space when you are transporting these to recycling and waste facilities.
Having the right waste processing equipment helps you solve these problems. If you have the right compactors, balers, and shredders in your possession, you will be able to achieve better waste reduction This means that in the long run, your waste disposal costs will come down significantly, even when you consider the cost of procuring the equipment.
What are the Pros and Cons of Buying Waste Processing Equipment?
Buying waste processing equipment is a big decision to make and needs to be made with proper due diligence. Here are some of the advantages of buying waste processing equipment.
- You get full control of the equipment
The machines you buy are yours to own.. You have full access and control of the equipment
- Tax benefits
Depending on your location, you may be able to get some tax benefits by purchasing waste processing equipment.
On the other hand, there are some issues that can persuade you to not buy too. Here are some of the cons.
- The costs – Buying new waste processing equipment can be costly! If you have different types of waste to process and you need to purchase pieces of equipment for all of them, the upfront cost of buying these can be quite high.
- Servicing and maintenance costs – Another issue is constantly servicing the equipment. Even with warranties and such, you could end up paying a lot to get your machines working smoothly and the service costs are likely to increase over time as the machine becomes older.
What are the Pros and Cons of Renting Your Waste Processing Equipment?
Renting has some clear advantages. Here are the important ones.
- You can upgrade and change anytime
Another significant advantage is that you can upgrade and change the equipment at any time depending on your changing needs. Imagine you have a vertical baler that occupies lesser space. But a change in your manufacturing process means that you need more heavy-duty equipment like a two-ram baler or even a horizontal baler. In this case, you can swap out the equipment without having to sell the existing one and buy a new one.
- Hassle-free servicing and maintenance
Your rental arrangement in most cases would also involve service contracts where the business that is renting the equipment out to you will also be responsible for regular maintenance. If the equipment malfunctions, it is not your responsibility and you can get it replaced with minimal costs.
There are of course some issues too with renting waste management equipment. The fact that you do not truly own the machine may be the most important one. You are also reliant on the availability of the equipment you need in your area. In the long run, you may actually also end up paying more than what you would pay to buy the equipment if you are renting it.
When Should You Rent Equipment?
Reduced upfront cost – This is the most important advantage of renting. You are paying out the cost in monthly or yearly rentals and this means that you do not have to sacrifice critical working capital that may be put to use elsewhere in your business. Overall, your waste management costs per year remain under control.
Are There Other Options Available?
This discussion would be incomplete without mentioning some another avenue you can explore apart from just buying new equipment or renting it. There is an option to buy or rent refurbished equipment. Refurbished machines cost less than what new machines would cost.
Whether you buy or rent is ultimately a decision that is driven by your unique situation as a business. The type of waste you produce, the budgets you can allocate, and the quantity and quantity of waste you have to process are all parameters that determine this decision.
As the recycling industry is growing, one thing is certain. Waste handling and processing are becoming much more crucial for the environment as well as your business. Waste processing equipment is playing a major part in this. Grinders, Compactors, sorting equipment, balers, shredders, augers, and other such machinery are making waste management easier and ultimately more cost-effective for businesses.
Whether to rent or buy is an important decision to make at the end of the day. It will affect your financials for several years, and you need to get all the information you need before you make the call. Enlisting the help of experts is a great way to ensure that you are not making the wrong decision.
Waste Control Inc has been at the forefront of waste consulting, and has helped hundreds of businesses completely overhaul their waste processes and machinery. Be it baling, compacting, composting, or shredding, we will help you get the best equipment to suit your needs and at the right costs. Talk to us today.