Advantages of Hiring Equipment in 2022
We often get asked by potential customers, “what are the advantages of hiring equipment compared to purchasing?” As a bottom line, everyone has their own preference for how they operate. However, in today’s article, we are going to share with you the advantages of hiring equipment in the 2022 market.
2022 has so far been quite a challenging year in terms of equipment, more so, getting hold of it. It is still quite apparent that even with the pandemic crisis over with; we are still feeling the backlash even now two years on. But there is hope yet.
Regardless, whether you prefer to either hire equipment or purchase it, we are all in the same boat, because getting hold of new equipment can take up to and over 24 months. Despite this, by choosing to hire your equipment from a reputable supplier can have several advantages. These are:
When hiring equipment, as a customer, you are not responsible for the machinery to comply with all the health and safety regulations. As a consumer, expect your equipment to have up-to-date inspections and a logbook of services carried out by the provider.
This means that you do not have to have any further cost to your overheads to keeping machinery that you use to a regulated standard. Reputable hire companies should keep their equipment up to date and be able to provide service documentation for every single piece of machinery they offer.
No large upfront investment
Unlike purchasing machinery, hiring machinery comes with several financial benefits to businesses as well. Choosing to hire avoids having to invest in just one piece of equipment. Plant machinery can reach into hundreds of thousands of pounds, whereas hiring can cost you far, far less overall.
Hire companies offer two ways of hiring equipment. On an account basis where you are invoiced monthly or quarterly for. Or cash, where you will be asked to pay a refundable deposit for the machinery while it is in your possession. To hire equipment, you will need to provide two forms of identification and copies of your insurance documentation.
Another benefit to hiring equipment is that you can spread the cost over time. If you opt to open a trade account with your prospect, you do not need to pay the balance until it is due. This is on a monthly or quarterly basis. (Subject to supplier’s terms and conditions.)
This then allows you the time to be paid from the project you allocate the equipment to so that it doesn’t affect your cash flow. However, you must note, this is not a get out of jail for free card… account balances are required to be cleared, otherwise this will affect you in the future of applying for additional credit.
Not responsible during downtime
When you purchase equipment, you need to justify its investment. This also means that when it is sat during downtime, your machinery is costing you money. The benefit of hiring equipment is that you only pay for it when you need it. Resulting in no downtime costs. This can be extremely beneficial if you don’t use a particular piece of equipment every single day of the year.
When you off hire your machinery with your supplier, you bring an end to your hire contract agreement. The correct method to off hire machinery will be stated in the terms and conditions of your contract agreement. By doing so, you will need to return or arrange collection of your hired equipment. Be aware, that when you agree to return the equipment, you cannot use it any further. Using machinery after you have agreed to off hire is a chargeable offence.
Operate new equipment
Depending on which hire company you decide to use, could grant you access to some of the latest equipment on the market. This comes with many benefits such as boost in productivity and reduction of fuel costs. However, this doesn’t apply to every supplier out there on the market. It is important to vet your supplier thoroughly before committing to a contract hire agreement with them.
For more information on how to choose you ideal prospect click here
There are a number of suppliers out there in the marketplace that are committed to providing their customers with the latest equipment. This is because; unlike purchased equipment, hired machinery goes through far more work. Hired machinery is used every day throughout the year, by several different operators, with different competency levels. Some more than others.
To ensure that you get the very best equipment for your money, it is best to choose a supplier that holds a fleet of young equipment and is maintained in house by qualified engineers.
Maintenance and PDI checks done for you
Another massive benefit is that when you choose to hire equipment, the machinery is check for you before you acquire it. This saves a huge amount of time as if you purchase a machine, this would be down to you. Hired equipment must be dispatched in good working order, otherwise, it is classed as unsafe to use.
As we have already discovered, hired equipment goes through far more work in its lifetime, therefore requires maintenance. In some cases, this means parts. When you hire machinery, the fee you pay, is far less than you would expect to pay for owning and maintaining your own machinery.
PDI checking (Pre Delivery Inspections) is a standard practise that is carried out in many fields of product supply. In the equipment hire industry, this includes a thorough check that the machinery works correctly and is safe to operate. These checks should be preformed by qualified engineers, methodically to ensure safe performance.
Investment does not deprecate
When you own your equipment, the investment depreciates over time. In addition, reselling equipment is a timely and stressful process. Especially if you want to get the return on investment you want. The older the machinery is the harder it will be to get the return on investment you wish to regain.
When you hire equipment, the only investment you have is for the use of the machinery, as and when you want it. With no downtime whatsoever. This means that you can directly charge the cost of the machinery to the customer and not include it as an overhead of your business. Less running costs allows you to focus on making more profit.
Not committed to one piece of machinery
When investing into one piece of machinery, you put your eggs all in one basket. Unless you have an unlimited budget… and those are near enough impossible to come by. Heavy investment into one piece of machinery can leave no space for alternatives. This is where choosing to hire equipment can make all the difference.
You will find that most equipment hire suppliers will offer a range of machinery which you are able to choose from, as and when you need it. This flexibility allows you to be more detailed in your selection of equipment. In turn, making your project far more productive overall. Too often we find ourselves needing machinery that it bigger or in some instances smaller. Purchasing machinery only limits you to be able to do a single range of jobs. However, choosing to hire gives users the added benefit of delving into a suppliers alternative machinery that can be better suited.
Transport costs for large machinery
Transporting large machinery is a big deal. If you own your equipment, then you are going to need the ability to transport it. Now if you are capable and have the correct equipment to do so, then it is ideal. However, that is not always the case for every business.
Investing in large machinery, also requires large investment in transportation systems. Another added expense you might not have thought about beforehand. Most equipment hire companies offer a delivery service which can be quoted on top of the cost of the machinery rental. This takes away the stress and additional investment of transporting machinery to where it need to be.
Transporting abnormally large machinery does require planning to be submitted to highways England period to moving. If you are unsure about the legal requirements to move large machinery then see this link here.
Conclusion Advantages of Hiring Equipment in 2022
Overall, there are several benefits to hiring plant equipment, but ultimately the decision on how you go about obtaining the equipment is down to you. Even though hiring may have many benefits, it doesn’t come without its drawbacks.
Hiring equipment doesn’t mean that you own it. Owning machinery allows you to have more flexibility on its availability and when and where you need it. This can cause issues if you need equipment immediately at a drop of a hat.
For more information, check out our resource on buy vs hiring construction equipment
If you are looking for a reputable hire supplier to work in the UK, then may be WHC Hire Services can help.
For Over 20 years WHC has been supplying the latest plant and tool hire equipment to businesses and the public. With a wealth of experience and knowledge of the construction industry, we are proud to operate one of the youngest and low hours fleets in the UK. Backed by world renowned equipment and support, WHC is dedicated to help all of its customers get the job done.
For more information of hire equipment, check out our online catalogue or speak to one of our friendly hire experts to help you find the right machinery for your project. 01684377977