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CARDBOARD BALERS - PURCHASE, LEASE OR RENT

 

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Many people are starting to realize that balers are a useful option for densifying recyclables. They are efficient machines and provide a great option for those that are looking to leverage their resources more effectively.  Cardboard balers are gaining popularity as they offer many advantages for a business in regards to waste handling and removal. Instead of throwing away cardboard boxes and miscellaneous cardboard pieces into a dumpster (that quickly consume the space of a dumpster) cardboard balers not only allow you to remove the cardboard from the waste stream, but also bale it for revenues.  Frequent cardboard removal, especially when you are paying to have it hauled to the landfill is very inefficient. With a cardboard baler, the main disadvantage of processing bulky cardboard is eliminated.   

There are three ways to procure cardboard balers for your use. You can rent them, lease them or purchase them. Each option has its own set of benefits. If you were to purchase an item, you will get the best return on investment. If you lease to own you will own it at the end of the lease term based on the monthly fee being paid in full for the entire term. If you rent the monthly rate will be the highest and you will need the best credit for this alternative but it is like getting an extended warranty during the rental term. However, whether it is a lease or rental the monthly payments do not cover abuse or misuse of the equipment so if you are set on a rental thinking you it will allow you to be abusive to the equipment then you will quickly find out this is not the case. The main disadvantage to rentals versus a lease is that at the end of the term you do not have any equity build-up so you either start the rental over again or you have to either purchase or lease the equipment as just if you were starting all over.  Usually the corporate philosophy related to equipment acquisitions will be the main determining factor as to whether the equipment is purchased, leased or rented.  It is fairly easy to asses the best path to take.

There are a variety of different sizes and shapes that you’ll need to consider before trying to structure your purchase, lease or rental. If your situation requires equipment customizations or very large equipment such as Horizontal Balers you be less likely to be a candidate for a rental because of the extra risk involved to the rental company and/or supplier. Rentals are best suited for ‘off the shelf’ type equipment with standard features that can easily be relocated if something goes bad with the rental. Rentals are sometimes good with Landlord Tenant scenario’s since it is easy to determine the prorate share that each tenant should pay on a monthly basis versus the debates over Capital expenditures and other matters that can complicate the appropriation decisions.  

In addition to the compaction benefits that are received from Cardboard Balers you will also realize that waste management is much easier in general. The productivity gains and efficiency benefits from the standpoint of labor savings and streamlining are sometimes difficult to quantify. One thing is for sure, if the equipment shows a good payback on paper it should be even much better once the equipment is implemented and all of the other streamlining benefits are factored into the equation and experienced firsthand..

 

Contributor / Editor - Matt Kennedy - Refer questions to info@wastecare.com  

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