Smart Decisions For Managing Heavy Machinery


Capital-intensive businesses, such as construction firms, require a large investment in assets to operate, and those assets may include heavy machinery. Using heavy machinery is expensive and carries a higher level of risk for workers on a job site. Review these tips for operating a business that requires heavy machinery.

Addressing risk

In order to get the most out of a piece of heavy machinery, a business must put controls in place to keep the company operating and prevent downtime. Here are some examples:

  • Employee protective gear: Employees who operate heavy machinery, or work near these machines, need to have the proper gear to protect themselves. Your firm can find rx safety glasses online, along with hardhats and other safety equipment.
  • Job site rules: Your firm must have a clear set of rules for moving in and around a job site, including procedures for the use of heavy machinery. If, for example, the construction site has dump trucks driving in and out of the site, everyone needs to know where the trucks enter and leave the area. In addition, someone must signal when the trucks can enter and leave.
  • Training: Your workforce must be trained on your policies for working on a job site, wearing safety gear, and other procedures.

These strategies can help you prevent worker injuries, and reduce the risk of damage to your heavy machinery.

Heavy machinery costs

Businesses that use heavy machinery, such as commercial builders, have a number of costs to consider:

  • Repair and maintenance: Every firm must budget so that all the recommended repairs and maintenance can be performed on machinery each year. If heavy machinery is not properly serviced, the useful life may be shorter, and the item will have to be replaced sooner than planned.
  • Depreciation expense: Depreciation refers to the expense incurred as a piece of machinery is used up over time. Firms that use heavy machinery must carefully estimate the useful life of each piece of machinery because the item must be replaced to continue business operations. Companies should also look into enhancements that can extend the machinery’s useful life, such as adding reinforced plates to protect machine parts.
  • Insurance, warranties: You must carry proper insurance on machinery, to provide coverage if the item is stolen or damaged by another party. Your firm must also carry liability coverage for any damage or injury your workers cause while using the machinery. Verify any manufacturer warranties offered on the machinery, and look into purchasing extended warranties if they are available.

Before purchasing heavy machinery, make sure that you understand these additional costs of ownership.

A huge investment

Purchasing heavy machinery requires some combination of cash and borrowed funds, and an expensive machinery purchase may use up valuable cash that is no longer available for other projects.

In order to justify this large investment, Standard Builders must put controls in place so that the bulldozer can be used frequently to generate revenue and profits.

Speak with experts

Ask your CPA about the number of years that should be used to depreciate heavy machinery in your accounting records. An insurance agent can help you find the right insurance coverage to protect the asset against theft or damage. With proper planning, you can use heavy machinery to operate a successful business.


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