Get a handle on your equipment. List what work needs to be done to make the equipment operable. Cost out the work so you know what it will cost when you get around to fixing it. Find out if parts are available for the repairs. Prioritize the work based on estimated need. Make the repairs and check the results. Use rentals when you can.
Replace the unit when the cost of repairs exceeds, on a consistent basis, the monthly obligation on a new unit. If the utilization of the new unit will not justify the purchase, then rent what you need and build the cost into the bid. Lastly, develop a fleet replacement schedule to help lower your equipment costs.
Garry Bartecki is the managing member of GB Financial Services LLP and VP Finance for the Associated Equipment Distributors. He can be reached at (708) 347-9109 or email@example.com.