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To buy or to rent equipment? Consider the options

By Gregory Venter

Public health threat focuses attention on effective cleaning processes

As we start a new year, decade and celebration of African Cleaning Review’s 21st year of promoting cleanliness in the workplace, we are aware of the challenges facing the industry and country. However, let’s focus on the first issue for 2020, which looks at contract cleaning from different perspectives.

Effective food and beverage hygiene is a crucial step in the production process in order to safeguard the final product that is satisfactory for consumer consumption. This issue provides details of a good hygiene plan as presented by a global provider of cleaning and sanitation products; it reveals insights of sanitation strategies in food processing environments. In the spotlight, the threat posed by the new strain of coronavirus will have a direct impact on people around the world, including cleaning professionals. They will be under pressure to revisit processes and procedures for effective cleaning, sanitising and disinfecting surfaces and spaces without compromising their own health by adhering to applicable preventative measures including the basics like hand hygiene. At African Cleaning Review we look forward to covering new developments, achievements and important news within the industry throughout this year, thereby offering the broadest possible exposure to the professional cleaning and hygiene industry. Please remember that the JanFeb issue plus 2020 Buyer’s Guide are now available on a digital platform via our website, complete with hyperlinks to contributors, advertisers and with sharing options.

Enjoy the read!

Equipment is such an integral part of any cleaning operation’s day-to-day

functions. In fact, next to the workforce, equipment is probably the most

important part of a cleaning operation. The dilemma of buying versus

renting often arises when cleaning equipment needs are in question.

As with most choices, there are pros and cons to each side, and there is actually no right or wrong answer between these options. However, facility managers / buildingservice contractors need to know when renting machinery would work best for them and when buying machinery would work best for them.

To determine the most appropriate option for your operational and economic profile, it’s important to look at the pros and cons of each option, as well as the facility’s or business’s budget, specific needs and any unique constraints, as there is no one-size-fits-all approach when it comes to the procurement of mission-critical assets such as cleaning equipment.

Rental Goscor Cleaning Equipment (GCE) offers both purchasing and short-/ long-term rental options. With the instability of the South African economy, influenced by factors that fall outside the control of industry participants, it is GCE’s belief that businesses need flexible options, and as a leading provider of cleaning solutions, the company must be able to deliver on that.

Flexibility is crucial. If a company rents equipment and the market deteriorates, they are at least in a position to return the equipment to the supplier. Conversely, if they win projects or take on new work, they can still hire more equipment to meet their expanding needs, without taking on greater risk.

Renting offers a company flexibility, allowing it to easily adapt to business fluctuations and, depending on a company’s financial strategy, rent payments can be considered an operating expense. In most cases, rentals can also be delivered directly to the worksite.

Rental is a perfect fit for shortterm jobs where companies want to meet unplanned or infrequent cleaning equipment needs. However, if the need for a specific piece of equipment arises often enough, the option to purchase the machine outright is probably the better choice. For instance, renting may be the best option if the building exterior or parking lot is only swept once a quarter and may also be ideal for annual deep cleans, such as spring cleaning. Money saved from making a significant capital outlay on equipment that’s not utilised often can be redirected towards upgrading existing models with more advanced features. For cleaning contractors, renting may be a way to avoid paying for equipment storage if contract circumstances change. Additionally, if the rented equipment is only needed for one specific client, the rental cost can be built into the contract. Renting also offers the opportunity to try out a piece of equipment before committing to purchasing it.

The advantage of renting from a reputable organisation is twofold: GCE offers full-time, skilled service personnel, whilst also keeping stock of a large inventory of parts to service the equipment. During lengthy rentals, the company identifies when a piece of equipment needs scheduled maintenance and service personnel are deployed to the site accordingly.

However, if renting the piece of equipment will cost as much as or more than owning it, then it makes more sense to buy the unit. It is important though, to plan carefully and look at the risk and to take a cost-comparison approach as the equation entails forecasts of the future business climate.

Outright purchasing But, what happens when rental needs for cleaning equipment become more frequent? When can facility managers decide that the time is right to stop renting and purchase the equipment? When a business has a frequent need for a particular piece of equipment, I believe this to be a good sign that buying is the best choice. This gives a company the opportunity to have the machine at hand when needed, or if you work in an industrial environment, this could help boost productivity to an even higher level. Ownership also allows operators to become highly familiar with the machines, which increases productivity. Purchasing the equipment outright also enables businesses to take advantage of tax deductions from interest, depreciation and maintenance costs.

Gregory Venter is the MD of Goscor Cleaning Equipment, a Bud Group company representing leading cleaning-equipment brands, including: Tennant, Elgin, Maer, Delfin, Kaivac and HighPoint.

For more information visit: www.goscorcleaning.co.za

Gregory Venter

SECURE YOUR SEAT

16–17 September 2020 Cape Town | SA email: nande@cleantex.co.za

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