)
)
| All content presented here and elsewhere is solely intended for informational purposes only. The reader is required to seek professional counsel before beginning any legal or financial endeavor. |
If you run a construction business, you’ll need a lot of specialized equipment and machinery. Which tools you’ll need depends on the type of work that your company takes on, but regardless of the specific equipment you need, the best way to get it is from a construction equipment supplier.
What Is a Construction Equipment Supplier?
A construction equipment supplier is a company that focuses on selling construction equipment. That typically means heavy duty machines that are used in construction but can also encompass smaller power tools.
Many construction equipment suppliers also produce equipment. For example, you can buy Caterpillar equipment directly from the company. There are also third-party suppliers that help producers distribute their equipment or offer to rent out equipment from various manufacturers.
What Construction Equipment Do Suppliers Carry?
Construction equipment suppliers carry all sorts of tools and machines that you need for construction jobs. Some examples include:
- Cranes
- Dump trucks
- Bulldozers
- Cement mixers
- Excavators
- Air compressors
- Asphalt rollers
Power lifts - Pile drivers
- Hand tools
Leasing vs Purchasing from Construction Equipment Suppliers
Leasing and purchasing construction equipment from a supplier are two viable options for acquiring the machinery needed for various projects. Each option has its own advantages and disadvantages, depending on factors such as the company's financial status, project duration, and equipment usage frequency. It is essential for businesses to carefully weigh the benefits and drawbacks of leasing and purchasing before making a decision to ensure that the chosen method aligns with their long-term goals and operational needs.
| Category | Leasing | Purchasing |
| Pros | Lower upfront costs: Less initial investment, allowing allocation of funds to other project aspects. Flexibility: Easy equipment upgrade or switch to accommodate project requirements. | Ownership: Contractors own the equipment and use it without restrictions. Depreciation: Equipment depreciation can be claimed as a tax deduction. |
| Cons | No equity: Contractors don't build equity in the equipment, as they don't own it. Long-term cost: Prolonged leasing may cost more than purchasing outright. | Higher upfront costs: More significant initial investment may strain the budget. Maintenance responsibility: Owners must maintain and repair equipment, which can be time-consuming and expensive. |
| Other Factors to Know | Project duration: Short-term projects may favor leasing, while long-term projects may benefit from purchasing. Equipment usage: Evaluate equipment usage frequency, as frequent usage may warrant purchasing. Financial situation: Assess whether leasing or purchasing aligns with the contractor's current financial standing. Resale value: Purchasing equipment with a high resale value can mitigate long-term costs. |
| Making the Decision | Consult with financial advisors: Seek professional advice to determine the best option for your business. Analyze supplier offers: Compare leasing and purchasing options from various suppliers to find the best deal. Consider equipment life cycle: Evaluate the expected lifespan of the equipment to determine if purchasing is a wise investment. |
Is There Financing for Construction Equipment?
Construction equipment is generally very expensive. Few companies can afford the tens or hundreds of thousands of dollars it takes to buy even one piece of machinery. That means financing is the best way to buy the equipment you need.
You have multiple financing options, each with pros and cons.
- Equipment loans. These loans use the equipment you buy as collateral, making them easier to qualify for and giving them lower rates. They’re available from many banks.
- Online lenders. Online lenders often have more flexible approval requirements, but you might struggle to find one that offers a loan large enough to buy construction tools.
- SBA loans. The SBA insures loans for small businesses. This gives you the opportunity to borrow massive amounts, more than $5 million. However, the approval timeline is long, and the rates might not be the lowest available if you have strong credit.
- Equipment sellers. The companies selling equipment might have their own financing offers, letting you buy the equipment and pay for it over time or lease it.
- Line of credit. You probably can’t use these to buy equipment due to their lower credit limits, but they can offer valuable flexibility during jobs, giving you funds to buy supplies or rent equipment for a day. You might like to learn more about construction line of credit.
Types of Construction Equipment Suppliers
There are three main types of construction equipment suppliers that you can work with.
Manufacturers
The first type of supplier is a manufacturer. The companies that make construction equipment and machinery will often do direct sales of their own products. For example, if you want a John Deere machine, you can go directly to John Deere and ask about purchasing it.
Manufacturers may have lower prices or better heavy equipment financing offers than other companies, but they’ll only sell their own products.
Dealers and Distributors
Dealers and distributors typically work with many construction equipment manufacturers and will sell multiple brands. They’re a good choice for people who want equipment from different manufacturers but they may charge markups.
Rental Companies
Rental companies will rent equipment out for short periods of time or single projects and might offer leases. This makes them helpful when you need a tool for a specific job but don’t want to commit to buying it.
Services Offered by Construction Equipment Suppliers
Equipment suppliers do more than just sell equipment to construction companies. Many offer other valuable services.
Sales and Distribution
The most basic service of a construction equipment supplier is sales and distribution. You can work with them to purchase the tools you need and get them delivered to your company.
Equipment Rental
If you don’t want to commit to buying a piece of equipment and keeping it for the long term, many suppliers offer leasing or rental programs. You can get a tool just for one job and then give it back or use a rental program to test equipment before buying.
Maintenance
Many suppliers have experienced maintenance teams that you can work with to keep the equipment you buy in top shape. If you lease or rent the equipment rather than buy it, maintenance may be included as part of the package.
Equipment Training
Construction equipment can be complicated to use and maintain. Many suppliers offer training and educational resources so you can get the most out of the tools you buy.
Construction Equipment Financing and Leasing Options
Most suppliers understand that it’s all but impossible to pay cash for construction equipment. Many have in-house financing options to try to compete with bank financing.
Consulting and Expertise
Construction equipment suppliers have a lot of experience in the industry and with different tools. This is especially true for dealers and distributors, who will know about a variety of brands of equipment.t They can consult with you and help you choose the best tools for your company’s needs.
After-Sales Support
Many suppliers offer support after you buy equipment, warranting their products or letting you reach out with questions about the proper operation or maintenance of the equipment.
The Top 13 Construction Equipment Suppliers
If you’re looking to buy construction equipment, consider working with these suppliers.
1. Caterpillar
Caterpillar is best known for construction and mining tools like pavers, dozers, loaders, and material handlers. The company offers financing, rentals, and help with maintenance and repairs.
2. Komatsu
Komatsu is known for their presses, trucks, forklifts, and other heavy equipment. You can work with Komatsu for financing, maintenance, repair, and training.
3. Hitachi
Hitachi equipment like bulldozers, cranes, and excavators are popular across the globe. Like other companies, it offers financing, leasing, repair, training, and other services.
4. Volvo
Though likely best known for its cars, Volvo also makes cranes, haulers, and other heavy machinery. You can finance or lease equipment from Volvo and work with the company for maintenance, repairs, and training.
5. Terex
Terex has a large catalog of products including trucks, cranes, concrete rollers, and more. The company is well known for its highly responsive customer service.
6. Liebherr
Liebherr is best known for excavation and mining tools, as well as equipment for working with concrete.
7. John Deere
John Deere specializes in agricultural equipment but also has dozers, dump trucks, and other construction machinery. You can work with John Deere for financing and get support and maintenance from its national network of dealers.
8. XCMG
A younger company, XCMG is known for heavy-duty excavators, loaders, and road machinery. It doesn’t do direct sales but offers 24/7/365 support and service.
9. Sany
Sany is one of the three largest equipment dealers in the world, specializing in industrial and construction machinery like cranes and forklifts. It offers after-sales support and service as well as financing.
10. Doosan
Doosan is a more than century-old company that is the parent business of Bobcat, which is well-known for its agricultural and construction machinery.
11. Zoomlion
Zoomlion is a high-tech company that builds everything from massive earthmovers and tower cranes to forklifts. It offers a parts and repair service and online purchasing options.
12. Kubota
Kubota is another century-old business that specializes in agricultural equipment, tractors, and construction tools. It’s known for precision-made tools designed for specific tasks, giving customers the chance to customize the machines they order.
13. Hyundai
Hyundai might be better known as an automaker, but it also makes construction equipment that it sells through a large network of dealers.
Factors to Consider When Choosing a Construction Equipment Supplier
When choosing a construction equipment supplier, you shouldn’t settle for the first one you find. Take the time to shop around and look for the best partner.
Reputation and Reliability
With any business relationship, it’s important to make sure that the people you’re working with have a good reputation, are responsive to your needs, and are, in general, reliable. Ask around to make sure the company you work with has strong customer service and follows through on its promises.
Equipment Selection and Quality
Of course, before you settle on an equipment seller, make sure they actually sell the equipment you need. Also, make sure that the equipment on offer is high quality and will last for a long time. Look for well-known brand names and a commitment to service and maintenance for the long term.
Pricing and Financing Options
When it comes down to it, price is one of the most important considerations. You don’t want to pay more than you have to for construction equipment, so try to find the dealer with the lowest prices. If you’re financing, make sure the interest rates and fees are good.
| Factor | Description |
| Price | Compare prices among different suppliers to find the most competitive rates while ensuring quality. |
| Quality | Evaluate the quality of products or services provided by the supplier to ensure they meet your standards. |
| Reputation | Research the supplier's reputation, including customer reviews and industry recognition, to assess their reliability and trustworthiness. |
| Delivery Times | Choose a supplier with reliable delivery times that align with your business needs and deadlines. |
| Customer Service | Ensure the supplier offers responsive and helpful customer service, which is vital for addressing issues and maintaining a successful partnership. |
| Payment Terms | Compare payment terms among suppliers to find a suitable option that works best for your business's cash flow and budget. |
| Sustainability Practices | Investigate the supplier's commitment to environmentally friendly practices, which can contribute to your company's sustainability goals and social responsibility efforts. |
How to Find the Right Construction Equipment Supplier
Use these steps when searching for an equipment supplier.
Research Construction Equipment Suppliers
Start by researching suppliers who sell the type of equipment you need. Learn a bit about their history, product lines, and reputations. Then, create a shortlist of potential partners.
Focus on Your Areas of Expertise
It’s important to know what you know and know what you don’t know. Make sure that any supplier you’re considering understands your needs and line of work, but don’t be afraid to ask for advice on topics you’re not as familiar with.
Take the Magnitude and Scale of the Project Into Account
Depending on the size of your project, you’ll need different types of equipment and different amounts of equipment. If you only need one excavator, you can work with a smaller supplier. If you’re building a new 1,000-mile-long highway, you’ll want to work with a much larger supplier that can provide dozens of pieces of machinery.
Determine the Equipment’s Intended Use or Purpose
Work with suppliers to learn more about their equipment and how it’s intended to be used. Make sure its intended uses line up with your needs.
Factor In the Availability and Size of Replacement Parts
Before settling on a specific supplier or brand of equipment, make sure that replacement parts for maintenance and repairs are readily available and that the supplier can easily get them.
Rent Equipment for a Test Run to Assess Its Suitability
Look for suppliers that offer short-term rentals or leases so you get the opportunity to test things before you buy them.
How to Negotiate the Best Deals with Construction Equipment Suppliers
In business, almost everything is negotiable. Once you find a few suppliers that you like, work with them to get an idea about what it will cost to buy or lease the desired equipment.
One good way to negotiate a deal is to make the suppliers compete for your business. If you get three quotes, bring the best quote to the two other suppliers and ask them to beat it. Once companies start competing for your money, you can often get a great deal.
You can also try to negotiate a bulk discount if you’re buying a lot of equipment at once.
Don’t forget to negotiate things other than price. For example, you might try to talk the seller into adding free maintenance for a period or other perks. Try to find creative ways to get a better deal even if the seller can’t budge on some factors, like price.
Building Long-term Partnerships with Construction Equipment Suppliers
Building long-term partnerships with construction equipment suppliers can greatly benefit contractors and construction companies by ensuring a reliable and consistent source of high-quality equipment. By fostering strong relationships with suppliers, businesses can receive better pricing, improved customer service, and tailored solutions for their projects. Establishing trust and open communication is key to maintaining these partnerships and promoting mutual growth in the construction industry.
| Benefits | Description |
| Negotiate favorable pricing | Long-term partnerships can lead to better pricing through bulk purchasing or loyalty discounts |
| Streamline procurement | A trusted supplier simplifies the procurement process, saving time and resources |
| Enhance customer service | Suppliers may prioritize long-term partners, providing better support and response times |
| Access tailored solutions | Suppliers can offer customized equipment and solutions for your specific project needs |
| Foster innovation | Collaborating with suppliers on new equipment can drive innovation and improve project outcomes |
| Share risk management | Long-term partnerships can lead to shared risk management strategies, promoting stability for both parties |
| Encourage growth | Mutual success and growth can be achieved through strategic collaboration and shared goals |
Final Word
Construction equipment is highly expensive but is necessary for construction companies. Finding the right supplier can be difficult but is worth the effort. With the right partner, you can get good deals on essential tools and after-sale support that will help you keep the equipment in top shape.
)
)
)
)