Compactors: Renting versus buying

In waste management, businesses face a critical decision: Should they invest in purchasing compactors or opt for a rental solution?

Compaction equipment is a major component of waste infrastructure, whether used at big box retailers or in multifamily housing units, helping to reduce the frequency of pickups and the volume of waste sent to landfills.

“As opposed to that dumpster being picked up once a week or twice a week, oftentimes we can reduce the waste that’s picked up by 4:1” Kelly Williams, CEO of Compactor Rentals of America (CRA), explains. “So, think of heavier-generating waste facilities, … there’s a benefit to reducing the amount of hauls made to the landfill.”

Most businesses have long assumed that purchasing such equipment is the only viable option. However, companies such as Phoenix-based CRA have challenged the traditional model of compactor ownership, offering a flexible, cost-effective alternative for businesses handling waste.

The national rental provider has grown significantly in just a few years, expanding from 20 employees to 50 and acquiring multiple regional compactor rental businesses. CRA now manages a fleet of 14,000 assets across 48 states.

According to Williams, who joined CRA in December 2021 after previously heading Mobile Mini Solutions—a publicly traded portable storage giant that in 2020 merged with William Scotsman, a provider of mobile and modular office space—purchasing a compactor is no small investment.

Assessing the costs

Compactor costs can range from $12,000 to well more than $100,000, representing a significant upfront capital expenditure. In contrast, rental solutions can provide a more financially flexible approach.

“Rental payments are typically fixed over a defined term,” Williams explains. “So, in terms of managing their operating expenses, it can be much more easily defined with a rental knowing that the repair and maintenance cost is on the owner of the asset versus if you own it and you get into a scenario where you’ve got costly repairs.”

Williams says compactor rental can offer several advantages:

• Predictable budgeting – Rental agreements offer fixed monthly payments, eliminating unexpected maintenance and repair costs. Businesses can budget with confidence, knowing exactly what the equipment will cost from month to month.
• Tax advantages – Rental payments often are tax-deductible as business expenses, providing additional financial benefits that ownership might not offer.
• Maintenance included – Perhaps the most significant advantage is the inclusion of comprehensive maintenance. With compactor rentals, repair and service costs are included, removing a major operational headache for businesses.

One of the more compelling arguments for renting, Williams says, is the ability to adapt quickly. With a rental program, businesses can more quickly upgrade or downgrade equipment as waste volumes change and avoid being locked into outdated equipment. Renting also provides a company with the opportunity to continuously update its fleet with the latest technology by having access to modern, efficient compaction equipment and advanced tracking technologies.

By working with a compactor rental provider that prioritizes technology advancements, operators can have access to a wide breadth of features, such as fullness tracking, optimized pickup schedules and real-time performance monitoring—valuable data points that can enable more efficient business decisions, Williams says.

Having access to newer equipment offers environmental and safety benefits as well, such as more hygienic, contained waste storage and fewer issues with pests or unauthorized dumping.

“I point to aesthetics [as a benefit]; I point to the smell, because our units are contained and deodorized, which allows for a much more pleasant experience in managing waste or trash, which we all know can be bad if not managed appropriately,” Williams adds.

Maintenance considerations

Access to a comprehensive maintenance program can help eliminate some of the challenges accompanying compactor equipment ownership. With providers like CRA, repairs and preventive maintenance are built into the cost.

A core advantage of this business model can be reduced downtime, which can be critical when handling large volumes of waste. As part of its maintenance offering, CRA provides guaranteed response times within two hours, a complete diagnostic assessment within 24 hours and access to a nationwide network of more than 200 third-party service vendors.

“We take care of delivery, installation and anything that happens with the equipment,” Williams says, noting that this approach allows businesses to focus on their core operations while ensuring efficient and reliable waste handling. Customers also typically have a single point of contact who is well-versed in their operations and can provide detailed guidance.

For operators looking to bring all their compactors under one company, CRA offers a hauler buy-back program, where a business can sell its existing compactors to CRA for extended maintenance and refurbishment.

“We continually refurbish [the compactors], so it extends their useful life,” Williams says. “A lot of times, owners of the businesses don’t necessarily recognize the life of the compactor when it becomes an annoyance to them— they just typically dispose of it.

“We take that asset, refurbish it, make it … good as new, and … redeploy that asset. … It gives us the opportunity to refresh the fleet for them, and puts them in a space where their compactors are more operational, and the responsiveness of repair and maintenance allows them to have a better customer experience.”

Finding the right fit

Williams says businesses that benefit most from compactor rentals are operations that could see increased efficiency by simplified waste management at multifamily housing complexes, retailers, fast food restaurants, warehousing facilities, educational institutions and sports venues.

Renting compactors is more than a financial choice—it’s a strategic business decision. By eliminating maintenance concerns, providing technological flexibility and offering predictable costs, rental solutions can allow businesses to focus on their core operations.

The author is the former associate editor of Waste Today.