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?
Welcome to the Forums Dago! Glad to have you. Well you gotta lot there to unpack so I'll start. We have a couple of members that own and operate cranes that can give much more detailed experience than I can give on the operations side but I'll start on the business end. Just from the business side I am not sure you could get a GL policy for a new startup crane company for $50K per year. We are a grading and pipe company with $1M-1.5M in revenue a year and our GL policy is $25K per year. Our company has been in business for 12 years and (knock on wood) no GL claims. Just something to start out with. Not being a downer, it is what it is. Our auto and inland marine is another $25K per year for a total of $50K of insurance per year and we're small. That doesn't include WC. Interested to here from others on the crane side of the startup.
Thank you for the warm welcome I'll be more than happy to hear it from them. GL policy? As in General Contractor Insurance? Wow, that's a lot of money to pay towards insurance. I'm guessing if anything goes wrong and a claim get's raised, the insurance rates would go through the roof? Looking forward to hear from other members too.
GL is General Liability insurance. Then there is liability on each vehicle, and workmen's comp on all employees. Then you have to buy or rent a place to park and work on your crane(s), and to insure the premises. You will need at least one large truck and one pickup to support operations, you can probably count on vehicle insurance in the neighborhood of 15k for just those two vehicles. Then you are going to have to pay a minimum of 2 employees until you start getting work. I don't know where you are, but an operator for a 100 ton crane will cost you at least 100k a year, and a CDL driver to move weights, cribbing, rigging, etc at least 50k.
Well, ****. You have rained all over my parade. I really didn't think about all that. GL + Crane Insurance + Workers Comp = A lot of effin money. How come I didn't think of a place to park/work on my crane? What if I buy a Truck Mounted Lattice Boom Crane or a Truck Mounted Telescopic Crane? I guess that should take care of transportation part? At least 100K/yr? Wow. It is really dawning on me now. I think I'm already regretting it. Thank you so much for really opening my eyes. I really didn't think this through.
Talk about a quick education in the crane business. Glad all i have to do is change the oil. Lol
I just bought a new 65 ton Liebherr LTM-1055. Paid $750k for it. I took it on it’s first job. 4 hour minimum for $225 per hour. Somehow the cable got off a pulley and wedged between them ruining it. $3,000!
A 100t crane is going to require a semi and flat bed or tandem straight truck as support as well. Dont forget cdl to be able to drive your crane. The cdl requirements recently changed now making it harder and more expensive. Also going to have to pull overweight/oversized permits to move it. Speaking of oil changes, our crane takes 10 gallons of oil plus a big expensive filter. Got to have support stuff to deal with this. Can you spoon on tires? If not, you'll be paying a lot to have tires mounted. Even little stuff like a couple of battery powered grease guns ad up quick. Iirc our crane has 54 grease fittings. Dont forget the costs of operators licensing and annual inspections.
If you had twice to three times that amount of $$, and the knowledge to run the crane and rig, and already had a farm/shop/ parking lot for it, you could probably buy a 30-50 ton hydraulic truck crane and feed yourself. Since you don't know anything about cranes, and want to hire all the "know how", you could probably start with a million and see what you had left at the end of three years. It rarely works if you (as the boss) doesn't know anything about the actual work. With no background in cranes or even construction in general- I wouldn't recommend it.
Need me to dig under my mattress and help out? Nothing like tearing up new equipment.
No need to dig under the mattress ya' got that in your front pocket.
You'll notice I said "help out", not "pay for it". $2.50 would technically be "helping out".
Need my address?
I totally did not expect that.
Oh man, that is horrible especially on the first job. I hope it's back on the road soon.
I guess I'm done with this whole crane thingy. Thank you tho for opening my eyes.
So, if I really want to get into this I need to have good money in the bank, and also knowledge of operating a crane. I just don't see myself operating a crane, but would love to get to know how cranes work, and maybe learn how to service/repair one one day in the future.
Check is already in the mail.
the reliability, planning, consistency, and arrangement is required