hiring vs. buying
Hiring vs. Buying
As the New Year begins, builders and contractors will be looking to save costs on equipment and
suppliers wherever possible whilst still maintaining efficiency when working on site. Fiona Perrin,
Key Account and Marketing Director at HSS Hire, discusses why hiring tool and equipment versus
buying is not just about the cost.
Hire. People have long seen has undoubtedly always been for the year ahead. And, in turn, nated. In addition, many daily
the benefit of it - it means users important to the construction supply that - at least in some small part - overheads such as transport and
have nationwide access to a vast chain; it may only be a small part points towards hire. logistics, PAT testing, H&S mainte-
range of professional, robust of what the industry does but it’s At a time when budgets are nance and inspection and inventory
and ready to use equipment. It proved itself to be invaluable: deliv- under analysis, when equipment control costs can all be reduced as
means they don’t have to worry ering on tap whatever tools and investment and capex becomes they become the responsibility of
about employing a maintenance equipment are needed, wherever perhaps more of a luxury than a the hire company.
regime to ensure compliance they’re needed; guaranteeing com- necessity; when flexibility and And of course, the squeezed
and availability. And yes of pliance and responding to often responsiveness needs to be your cash flows from last year that are
course, it means they don’t have mission-critical requests to help major USP; when achieving compli- the unfortunate but real fall out
to find lump sums of capital in- ensure that the job gets done. ance and meeting service level of a recession will inevitably mean
vestment and can even expect But at the start of a New Year agreements in the new year could there are fewer opportunities for
some significant financial advan- and whilst still in the midst of a be the difference between keeping large-scale capital investment in
tages to boot. recession, hire becomes even more a contract or losing it; the benefits new stock in the New Year.
of an attractive option. If ever of hire flash like a beacon. However, work must still continue
T
hat’s always been the case there has been a persuasive argu- Outsourcing offers numerous and if contractors are to retain their
though. It’s nothing new. ment for hire versus buy, last year financial benefits over and above customers they need the right kit,
Outsourcing has always been summed it up in a nutshell. A time reducing the need for capital invest- in the right condition and in the
seen as a smart choice - quite simply when budgets are often set and ment – something that’s likely to right quantity, to be able to get the
it can leave you to focus on your thus an increased focus on cost – tick the right boxes with the num- job done. As a result, outsourcing
core activities by taking a lot of the the New Year encourages the con- ber crunchers as well as the equipment requirements to a spe-
risk and time, as well as cost, out of struction industry to scrutinise its operators. Balance sheet asset reg- cialist will become the very best
the equation; that is, if you choose operating models to ensure a cost isters can be reduced and the need option for many.
the right channel partner to provide effective, efficient and sustainable to write end-off-life assets off as But it’s also important to remem-
tools and equipment for you. Hire approach to business is planned they become obsolete can be elimi- ber that the recession is not about
14 British Builder & Developer
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