Determining When to Rent or When to Buy test equipment

I work in the aerospace forging industry, responsible for temperature control in very large furnaces. We use many test instruments, and we always buy them. I have to work to AMS2750D, an industry standard. So when I want new instrumentation, I pull out the standard, and say, look, it's say's we need this. The finance people are a pain, they have no idea what it really takes to pull this all together. So, I have to say "WE NEED THIS TO CONDUCT BUSINESS, OR WE WILL FAIL". Then I usually get what I want.

I do believe that for critical testing when you are in main business will be best to buy the testing equipment for accuracy and for your own tranquility. For the measurement equipment I will do the same thing as well. This way you can save time once you start the project and still have some manufacturer warranties in case the instrumentation fail to you for whatever reason. I do believe it is better to buy it new for your own insurance and well done job.

Crank it Up..!

MC

I used to work for a company that never let engineers buy equipment. But, they gave cash awards for cost savings ideas. So, whenever I needed equipment, I'd turn in a cost savings idea to rent it and I'd get maybe $10 for the idea. Then I'd rent it for about 20% of the cost per month. After 8 or 10 months, I'd turn in another cost savings idea that we buy it rather than continue to rent it and this time I'd get maybe $25. Accounting loved it; they thought I was the most frugal engineer in the company. And I wound up with enough money to eat out and buy a round of beer. And, of course, my test equipment.

I have always felt that it is better to rent / lease test equipment. One place I worked always seemed to end of with rooms full of old, obsolete equipment.

I very seldom saw comprehensive buy vs. lease analysis done. If there was some extra funds in the budget - then stuff was purchased. Otherwise if something expenisve was needed and there was little to no short-term budget, it was leased.

MRDPE

http://TheProfessionalEngineer.com