Temporary works requires retrieval of sheet piles after project completion or as soon as the material have served its purpose. Sheet piles in these applications are non-integral part of the project but serves as accessories to facilitate construction. They are usually utilized in soil or water retention to enable deeper excavations and allow unhampered construction activities within a confinement.
Sheet piles can be purchased or rented and deciding between renting or purchasing can be critical in maximizing long term or project-based profits. For contractors, the necessity to come up with the right acquiring method is amplified because the construction industry is so competitive to the extent that a razor thin cost difference can cause them winning or losing a project bidding.
What are the perks of renting or buying sheet piling materials?
RENTING
Advantages/benefits:
Renting is helpful to engage projects even in the absence of adequate funds for initial investments.
Associated periodical costs are predictable.
By renting, it is possible to employ the best line of materials for a project without worrying on insurance and taxes.
Other possible expenses such as storage and inventory costs are also avoided.
Special cases of sheet piling projects also involves special sheet pile materials and designs. In such situations, renting eliminates the need to invest on sheet piles which are unlikely to be used again or deployed frequently.
When renting, sheet pile depreciation is no longer a concern.
Drawbacks/disadvantages:
You cannot enlist the sheet piling material as your asset. Because it is rented, there is no possibility of recovering the capital cost by enjoying a good resale value or benefiting from multiple project usages.
When renting sheet piles, there are always sorts of damages or losses that the renter have to pay. Costs are unpredictable and can be significant. Just imagine the trouble of completely damaging brand new pieces during pile driving or maybe accidentally hitting them with equipment.
Rentals are fixed expenses that adds up quickly every project and can increase cost proposals by significant margins causing contractors to be knocked off from comfortable bidding spots.
BUYING
Advantages/benefits:
Owning sheet piling materials is having assets that gives boost to your portfolio. These assets can be always liquidated during times of necessity. It is a good move in establishing positive impression among clients and players in the industry.
Buying sheet piles is creating opportunities of providing lower prices to customers. Sheet piles are durable materials which can stand up to 10 pile driving or uses before necessary repairs must be done. This gives contractors the advantage of generating more profit in the long run as the material stays in good condition to complete more projects.
Sheet piles can be rented out, generating income while avoiding deterioration due build-up of rusts when idle.
Sheet piles like any other construction material increases in price over time. Purchasing sheet piles at lower price is a more cost-effective decision compared to buying or renting at current market rates. Inflation rate is usually higher than maintenance costs and loan rates to make a one-time purchase is obviously lower than rental rates.
Owning sheet pilings eliminates problems arising from volatile market prices. A contractor for example, can confidently render an economical project proposal despite of current inflation threats.
Owning sheet piles gives the convenience of using it whenever you wish.
Having your own sheet piles gives you enough time to be familiar with it. Familiarity results to higher efficiency in completing projects. Owning also gives you the total control of how it is used and maintained.
Setbacks/disadvantages:
To buy sheet pilings requires spending a large amount at once, borrowing the required money at certain interest rate, or availing an amortization schedule that increases its acquisition value.
Owning sheet piles means you have to shoulder mobilization and demobilization costs in every project. Employing your own materials in remote projects can incur impractical transportation expenses.
When mishandled or improperly maintained, extents of damages and deterioration can be painful.
Aside from depreciation and maintenance costs, there are possible hidden costs associated with owning a bulk of these materials such as storage fee when you don’t have the space or appropriate shelter for it.
All of the pros and cons has been cited but on top of these, there are bigger factors that rules the decision whether to buy or rent sheet pile wall materials. Every business is different from others, so the decision consequently depends on budget, business needs, and the frequency that a particular type of sheet piling material is used by the acquirer. The role or nature of the business can also be the dictating parameter. Rental companies tend to produce or buy brand new assets, contractors mostly prefers to buy fresh and used materials as investment for multiple projects, while property owners and realtors are expected to rent, and so on.
WHEN TO RENT OR BUY?
Regardless of business nature, one will arrive to an answer after evaluating rules of thumb as below:
If you are employing the particular sheet pile material in at least 50% of your projects, purchase it.
If you intend to acquire the sheet pile material for one-time use, rent it.
If you are trying to acquire sheet piles for a large project where the usage schedule is long enough to allow you to recover the cost, buy it.
When market availability is an issue, buy it. If supply is low, and demand is high, you can generate income by renting or re-selling the materials.
If you have limited financial capability, rent it.
If price increase is inevitable and you have the resources, buy it.
If you do not have the capacity to move, maintain, and store these materials, rent it.
Whether you have decided to buy or rent, ESC is the perfect stop for you, discover it! www.escpile.com
ESC has one of the widest ranges of steel, vinyl, and FRP sheet piles: with over 15 series' and over 400 profiles in hot rolled sheet piles, cold rolled sheet piles and cold formed sheet piles in assortment of steel grades and production standards. ESC sheet piles have withstood the test of time all around the world with over 25 years of experience at all continents including Antarctica
These factors combined with a strong commitment to delivery timelines and repeated customer satisfaction make ESC the preferred supplier for Sheet Piles globally.
Please contact us and hear what our professionals say.