LET’S TALK ABOUT PLANT HIRE

BY EMMA COWAN

Plant and Civil Engineer highlights some of the trends and topics being talked about in the plant hire sector and explores the benefits and benefits (yes, there don’t seem to be many downsides) of hiring in your plant and equipment needs.

Investment in plant is a costly business but sometimes one that is the right decision. If there are basic items that will be in daily use, such as diggers, fork trucks, telehandlers and, if you have a constant need or long-term projects lined up, buying plant machinery is potentially the more cost-effective solution. Although the initial investment would be higher, the overall cost for the lifetime of the machine may well be less. Moreover, as an asset, the accounting and tax benefits of purchasing can make for a strong business case for buying.

However, there are several strong reasons to consider plant hire, at least as a proportion of your plant and equipment needs. Plant hire offers flexibility. When you hire machinery, you have the opportunity to cancel the contract if you need to. This may not be an option when purchasing a piece of machinery.

Plant

hire is ideal for short-term needs

If you don’t see a long-term need for the machinery, hiring is a great option. If you purchase the machine, you will have to sell it if you cannot create an ongoing use for it. Plant hire over a fixed period of need is going to be cheaper than new plant purchase. Moreover, you are likely to be able to hire the latest model of the machine you need, giving you operating efficiencies and the most modern plant solutions.

As one plant hire commentator I talked to says “The purchase price of equipment has increased by 25% over the last two years.” Purchasing equipment Is a longterm investment, yet products are regularly updated, improved, and relaunched, all of which will have an impact on the depreciated value of your purchased plant, both on the balance sheet and at the point of sale. It’s often sensible, therefore, to hire rather than buy. It’s a cost-effective solution to both short and long-term needs.

Insurance Is Not An Issue

Even though it is an issue that some plant hire companies we contacted didn’t want to discuss, it’s true that, in most instances, hired plant and equipment needs to be insured by the hirer. An insurance provider which specialises in truck, fleet and hiredin plant insurance comments: “If you need to make use of plant or machinery hire, it is essential and usually a contractual requirement to arrange insurance to cover any unfortunate eventualities such as loss or damage. Without the insurance cover in place, you would be responsible for the cost of repair or replacement.”

Plant hire account holders and agricultural hirers will be likely to have their insurance in place through their own policies and any issues that do arise are more likely to be with DIYers and cash buyers. For one plant hirer I talked to, the solution is simple: “We always recommend a big-name insurance company we work with and arrange it for customers in-store. It only takes a few minutes and can be used for all plant and tool hires, not just that particular brand. All you need to do is fill in your details, the serial number of the machine you are hiring and the period for cover.”

The Insurance provider confirms this: “We don’t just insure our own branded equipment; we can insure all of your plant and equipment. We can insure everything from a single machine on one policy to multi-million-pound fleets on an unspecified basis and everything in between.”

This relates to hired-in plant insurance. Another option that the dealers can avail of with this insurer is ‘hired-out’ insurance. This insurance is designed specifically for plant hire companies, enabling businesses to hire plant out under CPA conditions, without the requirement for their customer to insure it. Plant hirers can offer to carry the insurance risk at the quote stage of a contract. It allows plant hirers to charge a waiver fee and remain in control of the insurance.

Access All Areas

Several of the plant hire companies Plant and Civil Engineer talked to highlighted strong growth in access equipment hire. Most attribute this to an increased awareness of the need to comply with health and safety regulations (Work at Height Regulations (NI) 2005) and protocols. Every job comes with at least some level of risk; however, the construction industry is certainly one of the more hazardous workplaces. To put that in perspective, 46 workers died in construction work accidents in the last 10 years and falls from height remain one of the biggest causes of fatalities and major injuries. However, it is also likely that the powered access equipment sector will continue to grow based not just on legal requirements, but on advances in technology driving growth in access equipment. One report on this points to the following technological factors that are likely to stimulate future growth:

Enhanced Safety Features

Automation and Robotics

Electric and Hybrid Power

Telematics and Connectivity

Lightweight and Compact Designs, and Virtual and Augmented Reality

The report author comments: “These advancements will not only improve productivity and efficiency but also contribute to sustainable practices and a safer working environment. As technology continues to evolve, we can expect powered access equipment to become smarter, more versatile, and an indispensable part of various industries in the years to come.”

What Plant Hire Delivers

Plant hire delivers so much. Think the right product, delivered on demand for the whole length of a project, maintained throughout and then collected. Think about hiring costs as opposed to purchasing investments. Think back-up when you need it.

In a nutshell, as Golda Burrows, general manager of Plant and Civil Engineer says: “In the rapidly evolving construction industry, the success of any project hinges on having access to the right equipment and machinery at the right time. Plant hire companies play a crucial role in providing a diverse range of machinery and equipment on demand, enabling construction companies to optimise their operations.”

In Northern Ireland For Over 50 Years

CP Hire Plant & Tool Hire Northern Ireland specialises in plant, tool, powered access and site cabin hire. Established in 1971 and with seven depots throughout Northern Ireland, our experienced team are on hand to help and advise on the most suitable equipment rental for your project.

www.cphire.com

Depots: Coleraine, Ballymena, Belfast, Mid-Ulster, L'Derry, Banbridge, Magherafelt, Cardiff, Bristol and Swansea