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  • Rental vs. Ownership: The Economics of Welding Equipment

     

     

    Rental vs. Ownership: The Economics of Welding Equipment

     

    Every industry that relies on welding has two options when it comes to procuring the latest equipment: They can either buy or rent what they need.

    Which of the two options makes the most sense for you?

    Let’s take a closer look at the economics behind welding equipment. In this article, we’ll also weigh the pros and cons associated with buying and renting.

    Buying vs Renting: Factors to Consider 

    Welding manufacturing operations lose millions of dollars a year as a result of mistakes made in cost calculations and inefficient welding practices.

    To conduct a realistic cost-savings analysis, here are some factors a company should evaluate when deciding whether to rent or buy welding equipment. 

    • Technology requirements: What processes will your equipment be used for? 
    • Utilization rate: How often do you use a specific piece of equipment?
    • Capital: Do you prefer a one-time expense or costs that build up over time?
    • Volume requirements: How many units do you need? Do you have plans to scale up in the near future? 

    With these questions in mind, let’s take a look at when you should buy or rent welding equipment. 

    When You Should Buy Welding Equipment

    There are some benefits to owning welding equipment outright. 

    While it comes with a high initial cost, in the long run, repeatedly renting the same equipment may end up costing you about the same or even more. 

    The general rule of thumb is to consider the utilization rate. If you use a piece of equipment more than 60% to 70% of the time, it’s worth purchasing and owning. Anything less, and renting may be more beneficial. 

    Then there’s the case of technological requirements. For more general equipment that is readily available anytime you need it, it makes more sense to rent.

    But if you work with specialized equipment that’s very specific to your industry—and isn’t always easily available to rent—ownership makes more sense.  

    When You Should Rent Welding Equipment

    On the other hand, renting is increasingly seen as a more promising option. 

    While it may cost more to rent in the long run, you can also save on various costs related to storage, maintenance, insurance, and transportation, to name a few.

    Even though buying specialized equipment may be more handy in specific situations, renting gives you more options. 

    An owned piece of equipment may soon be outdated, but renting allows you to always work with the latest technology and state-of-the-art tools. 

    Renting also makes more sense when it comes to scaling operations. If you want to double your output for a specific period, for instance, it is financially better to rent the extra tools you need rather than buy them outright. 

    Shop Smart with nexAir

    Whatever your individual needs may be, nexAir has a solution for you. For over 80 years, nexAir has helped industries across the Southeast Forge Forward with the latest welding equipment and welding KnowHow.

    Our high-quality products are available for sale and rent. Regardless of how you choose to gain access to welding equipment, our experts will be happy to help you set it up and provide any additional support you may need.

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    Manufacturing downtime costs American companies billions annually. When production lines halt due to gas supply issues, every minute translates to lost revenue, missed deadlines, and frustrated customers. At nexAir, we've spent decades developing solutions that keep manufacturing operations running smoothly.

    The Hidden Costs of Gas-Related Downtime

    When manufacturers calculate downtime costs, they typically focus on labor and lost production. However, gas supply disruptions create cascading effects that multiply these losses:

    • Production rescheduling that disrupts carefully optimized sequences
    • Rush shipping fees to meet customer deadlines despite delays
    • Quality inconsistencies when processes restart after interruptions
    • Overtime costs to catch up after unplanned stoppages
    • Reputation damage when delivery commitments are missed

    For a typical mid-sized manufacturer, each hour of downtime represents $5,000-$10,000 in direct and indirect costs. Our analysis shows that gas-related issues cause 7-12% of total manufacturing downtime - a substantial opportunity for improvement.

    From Reactive to Proactive: The Supply Continuum

    Most facilities follow a predictable pattern in their gas management evolution:

    Stage 1: Reactive Management At this stage, facilities order gas when they notice supplies running low or, worse, after running out. Emergencies are common, and disruptions are accepted as "part of doing business." One automotive parts supplier operating this way experienced 14 production interruptions in a single quarter.

    Stage 2: Calendar-Based Management Facilities advance to scheduled deliveries based on estimated usage. While better than the reactive approach, this method still results in either excess inventory (tying up capital and space) or shortages when usage spikes occur. A plastics manufacturer following this model maintained 40% more cylinder inventory than necessary while still experiencing occasional stockouts.

    Stage 3: Consumption-Based Management Our telemetry systems monitor actual gas consumption, automatically triggering orders based on usage patterns rather than calendar dates. This approach virtually eliminates both stockouts and excess inventory. 

    Stage 4: Integrated Supply Management The most advanced approach connects gas management directly to production planning systems. Upcoming production requirements automatically adjust supply parameters, ensuring resources are precisely aligned with needs. A medical device manufacturer using this approach reports zero gas-related downtime for 27 consecutive months while operating with minimal inventory buffers.

    Our expert KnowHow™ in industrial gas applications allows us to guide customers through this evolution at a pace that makes sense for their operations.

    Customizing Solutions for Maximum Uptime

    Manufacturing environments vary dramatically in their gas requirements and operational constraints. We've developed flexible approaches that address these differences:

    • For high-volume, consistent usage operations, our bulk systems eliminate the cylinder handling that frequently causes supply disruptions. Bulk installations include telemetry monitoring and automated ordering to prevent outages.
    • For variable-demand environments, our microbulk delivery systems provide the benefits of bulk supply with lower volume commitments. These systems reduce handling requirements while maintaining the flexibility needed for changing production schedules.
    • For specialized applications requiring multiple gas types, our gas management programs combine cylinder tracking, usage monitoring, and automated replenishment. This comprehensive approach ensures that specialty gases are always available when needed, regardless of how infrequently they might be used.
    • For multi-site operations, our enterprise supply programs coordinate deliveries and optimize inventory across locations. By treating the organization's gas requirements holistically, we minimize both stockouts and excess inventory across the network.

    This consultative approach ensures that manufacturers receive solutions aligned with their specific operational patterns rather than generic "one-size-fits-all" systems.

    Beyond Traditional Supply: Integrated Services for Total Reliability

    Maximum uptime requires more than just reliable gas delivery. Our integrated services address the full spectrum of gas-related reliability factors:

    Equipment maintenance programs that prevent system failures before they impact production Technical gas specialists who resolve application issues that could otherwise cause production problems Safety training that prevents accidents leading to downtime events Emergency response capabilities that minimize impacts when unexpected events occur Supply chain redundancy that ensures continuity despite regional disruptions

    These services complement our supply solutions to form a comprehensive reliability strategy. By addressing both everyday operations and exceptional circumstances, we help manufacturers Forge Forward with confidence that gas-related disruptions won't derail their production targets.

    Measuring Success: The Results That Matter

    The ultimate measure of any downtime reduction strategy is its impact on production metrics. Our manufacturing customers consistently report significant improvements after implementing our comprehensive gas management solutions:

    Downtime reductions of 85-95% for gas-related issues Inventory cost decreases of 20-30% through optimized supply management Administrative time savings of 5-10 hours weekly through automated ordering and tracking Production schedule adherence improvements of 3-7% due to improved supply reliability

    These performance gains translate directly to bottom-line benefits that typically deliver ROI within months rather than years. More importantly, they allow manufacturers to confidently make delivery commitments, knowing that gas supply issues won't compromise their ability to perform.

    Don't let gas supply issues impact your productivity. Contact us today to explore our tailored solutions.

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