By Jason Hurdis, Global Market Professional, Construction Materials, Caterpillar Inc.

There was a time when you really had just one option when you needed equipment — you bought it. Sure, you could finance the purchase or choose a lease, but you generally ended up owning the machine. Not any longer.

According to a report from Allied Market Research, global construction rentals reached $91 billion in 2019 with $106 billion expected by 2027. An American Rental Association survey found that 93% of respondents rented equipment in 2019, with more than half planning to rent as much or more in the years ahead.

So which is the better path: buying or renting? Actually, they’re both smart choices, depending on your situation.

To determine what’s best for your business, start with these five basic questions:

  1. What’s your financial situation? Consider buying (or financing a purchase) if you want to build equity and enjoy the tax benefits of depreciation. You’ll also see a…