Throughout the past two years, manufacturers across the world have been disrupted as the result of the pandemic. As such, the supply chain for both consumer related goods and business related equipment has been adversely affected. Because of this, companies are struggling with capital expenditure delays and budgeting challenges. For many, temporary HVAC and power rentals has been a saving grace for acquiring the necessary equipment needed to sustain or grow their business operations.
To assist, our team put together some actionable tips on navigating these difficult times.
Adjust Your Capex Planning and Strategies
More importantly now than ever, getting ahead and planning capital expenditures well in advance is critical. There is tremendous demand for replacement capex equipment which is paired with supply chain delays and shortages across many sectors. As a result, most companies need to start planning for capex spending by understanding the ever-changing environment, foreseeing expected needs, and having knowledge of the market when it comes to expected availability and delivery timelines.
This proactive approach will allow adjustments when needed. For example, if a company planned on replacing their outdated HVAC system in the upcoming year, plans may need to begin 6-12 months out to ensure all delays are accounted for.
Consider Temporary HVAC and Power Equipment Rentals to Bridge the Gap
To keep your business running during these lengthy delays, temporary HVAC and power equipment rentals should be considered. Whether you are planning on purchasing, improving, or maintaining your existing HVAC equipment, short-term rentals will hold you over while you wait for the parts or manufacturers to deliver the units.
As an example, a hospital may require a new chiller to control the temperatures and ensure operations run seamlessly. However, they learn that the chiller manufacturer anticipates a six month delay on the delivery. Rather than risking equipment failure, the hospital can rent a chiller to ensure everything runs smoothly as they await their new equipment.
Rentals Can Help Free Up Capital for Other Important Expenditures
Even if renting is not a necessity, there are times that it can be helpful in terms of budgeting and expenditures. For one, the lower cost of rentals can help free up capital for other timely and important expenditures. This can be very important, especially for companies experiencing significant growth. In addition, rentals can provide other benefits:
- Lowers upfront costs
- May provide income tax breaks
- Reduces or eliminates supply chain and other unwanted delays
- Keeps your equipment up to date
- Improves cash flow
- Provides more options and flexibility
- Eliminates repair costs
Capital expenditure and supply chain delays are causing businesses worldwide to rethink their strategies. For many, relying on rental equipment will be the best option to keep their business running and growing. Mobile Air and Power Rentals, with over 30 locations nationwide, is ready to service your needs and relieve some of the stresses of the current climate. To discuss how we can help with your challenges, give us a call at 888-305-3038 today!