December 4, 2024
Forklifts play an indispensable role in the logistics and cargo-handling operations of many businesses. Be it inside warehouses or in distribution centres, forklifts are typically employed for efficiently moving and organising goods. Though they might not be as prominent or visible as delivery trucks or cargo ships, their impact on the supply chain is undeniable.
Thanks to the universal adoption of standard-size cargo pallets, forklifts are a common fixture in virtually all sizeable warehouses. Whether the warehouse serves a shopping centre, factory, or online retail business, you can be sure that it uses forklifts or similar heavy machinery for moving and organising goods safely and efficiently.
In practice, however, many smaller businesses only need a forklift’s load-handling capacity at certain times of the year. Also, even retailers and manufacturers that need forklifts all year round cannot always justify owning all the forklifts they need if they experience large swings in seasonal demand. In today’s global economy, the differences between baseline and seasonal needs are often so great that buying forklifts would result in the equipment lying unused most of the time.
Thus, in busy periods like the holiday season or product launches, forklift rental is the go-to solution, providing businesses with increased moving capacity without over-investment. Let’s delve into some of the more specific advantages of renting over buying during seasonal peaks.
To start, renting eliminates costs associated with site transport, maintenance, permanent storage, and the training of in-house employees to take care of the equipment. It also completely avoids issues with asset depreciation and the cost of selling equipment should the business change its focus. Most importantly, without significant capital investments tied up in expensive machinery, businesses can spend more resources on other priorities.
Market demands have become more dynamic than ever, thanks to globalisation and digital transformation. Where a business’s holiday demands would have once originated fairly close to home, the highly international nature of today’s markets means that seasonal demand spikes can be extreme, potentially multiplying forklift requirements by severalfold.
In these circumstances, purchasing simply isn’t practical for most businesses, as much of the potential of their investments will sit unused. Renting, on the other hand, makes it much easier to scale a fleet up or down based on business demand.
Renting also lets fleets scale the ‘right’ way. Companies can mix and match forklift types to address specific operational requirements that come up during busy periods. These requirements aren’t always the same from year to year so it’s advantageous to be able to simply rent out what’s needed and to return equipment when the demand has passed.
Rental fleets often include the latest forklift models to encourage bookings. If a business is planning on acquiring its own permanent fleet sometime in the future, renting is a good way to test out different systems without overcommitting limited capital. Having the best forklifts also has more immediate benefits for productivity and worker safety, both of which are essential during peak season rushes.
Once seasonal demands subside, businesses that own forklifts will have to look for a way to store unused machines. Just leaving them in some corner of the warehouse isn’t ideal, since the space is probably better used for storing sales or manufacturing inventory. The lack of proper protection can also cause some parts to deteriorate over time, leaving the business with additional maintenance and repair costs when the next peak season comes around. Lastly, building and maintaining a new garage just to house forklifts that will lie idle most months isn’t ideal for many businesses either.
Renting addresses all these issues, eliminating the need for long-term storage solutions and maximising available warehouse space. Proper storage and maintenance are typically the rental provider’s responsibility, relieving companies of these costly burdens when demand is low.
Lastly, strategic rental makes it possible to fully maximise a business’s cash flow potential. It can keep businesses from having to take loans or deplete cash reserves for expensive procurement and upkeep, guaranteeing that their seasonal expenditures are closely matched with their real operational requirements. The added cash inflows can then be directed toward important growth initiatives rather than just equipment ownership.
For the vast majority of businesses, renting forklifts makes much more sense than buying them, especially in cases where they’re needed to address seasonal demand. While it’s true that forklifts can be quite affordable to acquire these days, the storage and maintenance costs are often more than many businesses are prepared to handle, particularly if they don’t need the extra lifting capacity in most months.
For scaling up operations during the holidays or handling occasional surges in demand, forklift rentals are a practical and financially sound solution. If the surge in demand becomes a new baseline for the business, then purchasing could be an option if the storage and maintenance costs are addressed.
Regardless, when exploring the advantages of forklift rentals over purchases, it’s always best to take things in context. With the right rental provider, you can find the right combination of rentals and permanent equipment investments so that your stock-moving operations stay cost-efficient year-round.
