HIRE Christmas.
Warehouse capacity is typically full at this time, raising the question about the availability of storage facilities for food and medicine for national contingency planning. Additional temperature-controlled storage capacity has been added over the past couple of years in preparation for Brexit; however, given the recent change of exit date, there are concerns this will not be adequate to meet the country’s strategic needs.
A key objection to investing in new
temperature-controlled storage is the high capital cost. Plus, depending on how post- Brexit arrangements pan out, any new facilities added may prove unnecessary in the medium to long term, making the decision about capital expenditure even harder to justify. This is where the option of hiring
temperature control equipment comes into its own. High quality temperature controlled storage facilities can be quickly created with hire chillers and air handling units for relatively modest cost and without the upfront expense of fixed refrigeration systems.
As the situation develops, if a Brexit support facility proves to no longer be needed, hire
equipment can simply be returned and cold storage space decommissioned without loss of the initial investment.
Another benefit of hiring is cost certainty. A rental agreement covers not only the hire of equipment, but also equipment maintenance with 24/7 cover, and there are no surprise bills in the event of breakdown.
This enables businesses to budget with confidence and maintain cash flow. Indeed, this is so attractive that some companies choose hiring as their preferred method of financing major items involving temperature control. The assurance of fixed payments and a 24-hour call-out in the event of breakdown can be compelling.
Speed of deployment is another important advantage of rental. It overcomes the need for complex equipment assessment under company procurement policies along with the uncertainties and delays this can sometimes involve.
We have already demonstrated due diligence and supply class-leading chillers, heaters and air handling systems that are proven to be reliable and energy efficient. Plant can be deployed immediately and be up and running
in a few hours. It is highly flexible and provides a rapid solution.
The economics of hiring versus buying are also more attractive fiscally, since hire payments are normally considered a business expense.
Rental costs are therefore typically
deductible for corporation tax purposes, while capital purchases are usually capitalised and depreciated over a number of years. Please consult your specialist tax advisor for further guidance.
Our experienced rental support teams are currently engaged in a number of temperature controlled projects across the UK as part of companies’ preparations for Brexit. We have a comprehensive range of equipment available for deployment at short notice, and rental options include short-, medium- and long- term contracts.
Among all the uncertainty and in
whatever form it finally takes, it is clear the UK’s departure from the EU will require a commensurate level of buffer stocks to protect the nation from potential delays and shortages in the supply chain. We are ready to assist and help make the process as smooth as possible.
SBS
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