Want to start a crane rental business, but not really sure.

Hey!

I'm not only new to this forum, but also to cranes. As a matter of fact, I come from a Computer Science background so I'm not even anywhere closely related to cranes, so please give me some sound advice.

Growing up, I was really close to my cousin who was in the construction business. I remember looking at some photos from his work site filled with huge cranes, and I suddenly developed an itch towards the construction business. So, I wanted to get a degree in Civil Engineering to scratch that itch, but somehow due to unforeseen circumstances ended up in Computer Science. Am I mad? No, not really. I'm actually doing great with computers. Just sitting in front of a screen all day long makes me wanna stab my eyes. I think I'm done with computers and want to get into construction, but I neither have the knowledge nor the degree for that.

Then I started to look around for anything that was closely related to construction, and BIG ASS CRANES popped into my head instantly. Then it hit me, why can't I start a crane rental business, because real estate is booming where I live. Also because there aren't many crane rental companies (at least not big ones) in my state. Every time I went out of my house, I used to see a 500t Liebherr/Demag (bought from out of state) working away on a site, and I used to ask myself why can't I start something because there is definitely demand for it and almost non existent competition. The only thing that stopped me was money. Those things cost millions which I don't have.

So, I felt what if I start small and work my way up. Maybe I can start with a old and used 100t crane and move up to 500t later down the road. Not easy by any means, but doesn't cost money to dream.

The problem is that I don't know how to operate a crane, and don't plan to. I also don't know jack about cranes, and don't forget tons of regulations that come along owning/operating one. I so want to get into the crane rental business, but I don't really know if I should.

If I want to start, my budget would be anywhere between $50K-100K. Is it doable? Should I?

My first thoughts: Old crane might not be certifiable.....( safe. ) I can't even begin to imagine what insurance would cost to be able to rent out a crane.... probably as much as the crane!!! Cranes tip over from improper operating, so how do you know who using it. I don't think it would ever work.

Joel59 said:

My first thoughts: Old crane might not be certifiable.....( safe. ) I can't even begin to imagine what insurance would cost to be able to rent out a crane.... probably as much as the crane!!! Cranes tip over from improper operating, so how do you know who using it. I don't think it would ever work.

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Yeah, OSHA certification might be a problem with old cranes. I'm thinking a 1970-1975 Truck Mounted Lattice Boom Crane maybe from brands like P&H, American, Link-Belt, and Lima.

Yeah, another user really shined a light on me about insurance.

My first thought to run, far away.

Construction equipment is very complex with tons of components, so think when your chasing a bug in a program the same can happen in a crane, but at insane repair rates.

If you want to get into construction equipment, I'd recommend leasing equipment until you know what your doing.

Your endeavor is much like farming. One has much money tied up in assets or a crop looking for a market. That is ... if you had a crane, you need work for it. Otherwise, the crane mortage, depreciation, insurance, taxes, certifications, etc. are rapidly accruing costs as it sits in your yard. It would be better to find a market or niche that you can fill that's not being filled by existing businesses. There's a reason that 500 ton crane comes from out of state ... there's not enough work for it in your area.

Doesn't sound like a good idea for someone with no experience running cranes. It would be different if you had say 10 years experience running a crane and had contacts and simply need to buy your own, but I can't see this ending well. If you wanted a crane to run on a farm, again it's not hard but if you are hiring it out and lifting things on job sites there is a ton of things like insurance, certifying the truck and crane, ticketed operator, etc etc. It also is likely not a easy industry to break into, just because you are closer doesn't mean you'll get the work. A general may use a company because they like working with them and they are reliable and the price isn't the whole thing, also the big companies have 100's of cranes of every size to do different projects, if you have 1 many wouldn't even consider you, they only want to deal with one company for all of their crane needs. Also even if you have proper insurance certified, a general doesn't want a crane flopped over on a building or dropping something, it doesn't look good. Having someone they can trust is huge.

I don’t know where you’re at in the US but most crane companies are desperate for bodies right now(heck you could say that for most skilled trades).

If you can afford to switch careers I would find employment at a rental barn for a solid 5 years before I would buy my own. Get a class a cdl and get on as a truck driver/oiler and you’ll learn a lot about crane rental in 5 years. I would definitely learn on someone else’s equipment while you’re making money.

There are people who own cranes that don’t know much about them but they are usually just money guys.

The small business with old iron that makes it, fixes it themselves. You cannot hire the repair work done and it is never ending. We have some old conventionals working on the forum. Read this thread end-to-end, paying attention to what they have to do to keep it running and most importantly WHO is doing the work.
https://www.heavyequipmentforums.com/threads/old-conventionals-at-work.71071/
They operate it, fix it, move it themselves for the large part. It is a labor of love and the guys in there have combined lifetimes of experience.

cfherrman said:

My first thought to run, far away.

Construction equipment is very complex with tons of components, so think when your chasing a bug in a program the same can happen in a crane, but at insane repair rates.

If you want to get into construction equipment, I'd recommend leasing equipment until you know what your doing.

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Okay, makes sense when you put it that way.

hosspuller said:

Your endeavor is much like farming. One has much money tied up in assets or a crop looking for a market. That is ... if you had a crane, you need work for it. Otherwise, the crane mortage, depreciation, insurance, taxes, certifications, etc. are rapidly accruing costs as it sits in your yard. It would be better to find a market or niche that you can fill that's not being filled by existing businesses. There's a reason that 500 ton crane comes from out of state ... there's not enough work for it in your area.

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Yeah, I forgot about mortgage, depreciation, insurance, taxes and certifications. The most important stuff. If my crane is sitting idle, I'm losing money so I have to find constant work which is not easy for a newbie like me.

suladas said:

Doesn't sound like a good idea for someone with no experience running cranes. It would be different if you had say 10 years experience running a crane and had contacts and simply need to buy your own, but I can't see this ending well. If you wanted a crane to run on a farm, again it's not hard but if you are hiring it out and lifting things on job sites there is a ton of things like insurance, certifying the truck and crane, ticketed operator, etc etc. It also is likely not a easy industry to break into, just because you are closer doesn't mean you'll get the work. A general may use a company because they like working with them and they are reliable and the price isn't the whole thing, also the big companies have 100's of cranes of every size to do different projects, if you have 1 many wouldn't even consider you, they only want to deal with one company for all of their crane needs. Also even if you have proper insurance certified, a general doesn't want a crane flopped over on a building or dropping something, it doesn't look good. Having someone they can trust is huge.

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Exactly, a newbie like me wouldn't even get hired no matter how much I lowball the offer. Man, I guess I have to drop the idea altogether.

Knepptune said:

I don’t know where you’re at in the US but most crane companies are desperate for bodies right now(heck you could say that for most skilled trades).

If you can afford to switch careers I would find employment at a rental barn for a solid 5 years before I would buy my own. Get a class a cdl and get on as a truck driver/oiler and you’ll learn a lot about crane rental in 5 years. I would definitely learn on someone else’s equipment while you’re making money.

There are people who own cranes that don’t know much about them but they are usually just money guys.

Click to expand...

But I don't want to drive/operate a crane. I was thinking more in terms of hiring an experienced operator who has contacts, but again why would an experienced operator work for a newbie like me. I guess I'll think about this business later when I have a million dollars sitting in my bank.

skyking1 said:

The small business with old iron that makes it, fixes it themselves. You cannot hire the repair work done and it is never ending. We have some old conventionals working on the forum. Read this thread end-to-end, paying attention to what they have to do to keep it running and most importantly WHO is doing the work.
https://www.heavyequipmentforums.com/threads/old-conventionals-at-work.71071/
They operate it, fix it, move it themselves for the large part. It is a labor of love and the guys in there have combined lifetimes of experience.

Click to expand...

Yeah, I already checked out that entire thread and man-o-man those P&H cranes look amazing. Yeah tradesman and that other guy own and operate their own cranes, and also fix them so I have no chance.

You've got a good attitude for someone getting shut down by this entire thread.

HEF is a great place for helping you become aware of ALL the aspects of this type of venture. That being said, sometimes we dreamers (me included, I see that pie in the sky!) don't see all the sticking points that can make these ventures failures, if not bankrupters.

There are some really good tips above, like go get some experience with other people's equipment, even it you don't want to operate you can learn more about the cranes and the business, maybe even network to find other folks you like to work with. Cranes, and I don't know much about them, other than things can go terribly, terribly wrong, could be a good venture to get into, but it doesn't seem like you can shortcut your way. The crane companies out there have built on years of experience and knowledge.

aighead said:

You've got a good attitude for someone getting shut down by this entire thread.

HEF is a great place for helping you become aware of ALL the aspects of this type of venture. That being said, sometimes we dreamers (me included, I see that pie in the sky!) don't see all the sticking points that can make these ventures failures, if not bankrupters.

There are some really good tips above, like go get some experience with other people's equipment, even it you don't want to operate you can learn more about the cranes and the business, maybe even network to find other folks you like to work with. Cranes, and I don't know much about them, other than things can go terribly, terribly wrong, could be a good venture to get into, but it doesn't seem like you can shortcut your way. The crane companies out there have built on years of experience and knowledge.

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Well, it was great advice from the pros.

I'm glad that I stumbled upon this forum filled with wonderful people who have tons of knowledge and experience.

It doesn't mean it can't be done though, you just have to do it right.

There's also smaller cranes, like 25 ton models that are handy

cfherrman said:

It doesn't mean it can't be done though, you just have to do it right.

There's also smaller cranes, like 25 ton models that are handy

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Advice?

WOW! Talk about shooting for the moon! Cranes are the most dangerous, most expensive, most regulated pieces of equipment to own and operate. How about owning and renting out some minis to start off with?

I saw a 1996 35 ton crane on Facebook this morning for 85k, idk if that's a good price or not.

I'm in pulling units in the oilfield, it's very similar to cranes.

You either have to have rich parents, rich friends, or a huge loan. I took a different route because I've worked out here for 16 years.

The two crane companies in my area one started with a machine shop and equipment repair and the other was a construction company first.

My advice would probably get in the construction industry and start small such as a mini unless you have some money like above.

Vetech63 said:

WOW! Talk about shooting for the moon! Cranes are the most dangerous, most expensive, most regulated pieces of equipment to own and operate. How about owning and renting out some minis to start off with?

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Minis?