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An owned piece of equipment may soon be outdated, but renting allows you to always work with the latest technology and state-of-the-art tools.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