As the construction industry continues to evolve, businesses are faced with the decision of whether to purchase or rent equipment. At our recent Empower conference, hosts of the Construction Brothers Podcast Tyler and Eddie Campbell sat down with Rob Coakley, the equipment manager at Lithko Contracting, to discuss the advantages of renting equipment and how Lithko found success with Quickbase and a adopting the "rent-first mentality."
Here are some key takeaways from the conversation.
Why “Rent-First” Gives You the Advantage
Lithko Contracting operates multiple sites across the country, making equipment ownership a complex and challenging task. Rob Coakley explains that the company has adopted a "rent first mentality" to streamline their equipment management.
"It became, apparent that my background in rental was going to allow me to transition into the contracting space," said Coakley. "It allowed me to manage as well, or even outmanage the rental companies."
By prioritizing rentals, Lithko can remain agile and responsive to complex project demands, ensuring they always have access to the latest and most efficient equipment. This strategy not only reduces the challenges of equipment ownership, but also allows the company to refocus their resources to more innovative projects and goals.
Rental Management for a Competitive Advantage
Rob's role as the equipment manager at Lithko is to ensure that the end cost of equipment becomes a competitive advantage for the company. He emphasizes the importance of accurately tracking equipment costs and not burying them in job budgets or estimates. Through efficient management of rental equipment, Lithko can optimize their operations and prevent rental companies from outmaneuvering them.
“My job is to make sure that the vision we have is managed the best that it can be," said Coakley. "It's important to understand that we have the cost in the correct estimate, and that we're making profit on it."
Managing rental equipment helps streamline operations by ensuring that the right equipment is available at the right time. This reduces downtime, and allows for better maintenance scheduling, extending the lifespan of the equipment and minimizing repair expenses. This proactive approach leads to more efficient project execution and improved productivity.
How to Scale Improve Efficiency by Renting Equipment
Lithko strongly believes in the scalability and project efficiency that renting equipment offers. Rob and his team argue that owning excessive equipment is unnecessary and can hinder growth. They compare rental companies specializing in equipment to subcontractors who specialize in specific construction tasks. Lithko advocates for including the cost of rental equipment in project estimates, as long as the estimate is accurate and includes profit. Their focus is on managing their vision and profitability, rather than solely considering tax or depreciation benefits from equipment ownership.
Lithko also emphasizes the flexibility that rental equipment provides. By renting, they can quickly adapt to the specific needs of each project without the long-term commitment and maintenance costs associated with ownership. This approach allows Lithko to allocate resources more effectively, ensuring that every project receives the necessary tools and machinery to meet tight deadlines and quality standards.
Managing Rental Equipment with Quickbase
As Lithko scaled aggressively, they realized that spreadsheets and paper were inadequate for efficiently managing their rental equipment. They turned to Quickbase to address the challenges of scaling a large company. Quickbase provided them with a customizable platform that could be easily customized and adapted across the organization.
"And when I think through a challenge like scaling a company, spreadsheets and paper might have been good at the beginning," said Eddie Campbell. "But then you've got a problem of scale created around the management of all this rental equipment. That's where Quickbase comes in."
Rob Coakley highlights the benefits of Quickbase, including real-time updates, dashboards, reporting, and automatic notifications. He sees the major benefits as better collaborative equipment management and improvement in short-term planning.
Taking a Dynamic Approach to Short-Term Planning and Equipment Management
By utilizing reports and dashboards, the company can track various aspects of their operations, such as equipment coordination, vendor partnerships, safety incidents, and regulatory compliance.
Rob emphasizes the importance of leadership, management, and supervision as they’ve rolled out their Quickbase platform. Quickbase’s mobile features empowers field workers to contribute meaningful data in real-time, giving the most up to date snapshot of how the equipment is performing
Customization Leads to Innovation
Rob says that emphasizes Quickbase’s flexibility and the ability to build custom solutions without coding skills. Lithko Contracting has tailored Quickbase to suit their specific needs, allowing them to improve short-term planning and efficiently manage critical data from equipment..
In the construction industry, application customization is crucial because every project has unique requirements and challenges. Customizable tools allow companies to adapt their workflows to meet specific project needs, manage resources more efficiently, and respond quickly to unforeseen issues. This flexibility can lead to significant time and cost savings, improved safety standards, and better overall project outcomes.
Building Better with Quickbase
Lithko Contracting's experience with the "rent-first” mentality and their adoption of Quickbase demonstrate the advantages of renting equipment in the construction industry. By avoiding the challenges and costs associated with equipment ownership, Lithko can focus on their strategic goals and getting their jobs done quicker. Quickbase has proven to be a valuable asset in managing rental equipment, improving short-term planning, and facilitating collaboration across the organization.
