Knowing whether to hire or buy tools & equipment is a situation many in the construction industry are faced with. There isn’t a right or wrong answer to this question, as it completely depends on the project and the type of services your business regularly offers. In many cases it is a simple task to go out and purchase a particular piece of equipment, especially if the tool is fairly cheap. On other occasions however, you will find that the tool you need is either expensive or more specialised and harder to acquire. We have put together a list of tips to help you weigh up the pros and cons of both buying and hiring equipment for a project.
Most companies have an owned inventory of ‘essentials’. Tools that are used on the job everyday that the business couldn’t function without. For example, it makes sense that a self-employed handyman will own a range of power tools that are necessary for most tasks but won’t own specialist equipment such as a cherry picker or platform lift etc.
Usage is a big factor you should consider. If you’re only planning to use it for a specific project or just for one day, then there isn’t much point paying large upfront costs for tools that you could otherwise hire.
Some tools and pieces of equipment need to be upgraded as technology and industry standards develop. If your business relies on the latest technology, it makes sense to hire regularly updated tools rather than continually buy and sell equipment at a potential loss.
With durable and equipment that you know will last for a long time, buying makes a lot of sense. However, if it’s equipment with a short term life span, renting means you get more value for your money.
If you’re a large company then budget might not be a problem, but for smaller companies, even though it might be more cost effective to buy equipment outright, without the budget to do so, hiring at least allows you the right tools for the job.
One benefit of hiring is that you are able to get the latest equipment without the latest price tag. Using reliable brand new equipment is much better than cleaning up and dusting off old tools that have seen better days.
Even experienced tradesmen may need help and advice when it comes to taking on a new job or using a new piece of equipment. With a professional hire company, you can draw on the expertise of seasoned professionals. Experts can offer help and advice when it comes to the right tools for the job, which is particularly important if you are tackling a particular project for the first time, whether it’s a home DIY job or a new commercial contract. Tips and tricks to get the most out of tools can be invaluable to saving time and money on a project.
Buying equipment can often require a large upfront investment. With hiring, however, you get to use great equipment without the large upfront costs which will eat into your budget. If you are consistently hiring the same equipment each month, you can rely on predictable monthly costs which help with budget forecasting.
Sometimes a business may invest in a piece of equipment, and circumstances may change, an event may cause uncertainty in the industry or the loss of a contract can result in the equipment no longer being re quired. This might mean having to sell the equipment – possibly at a loss, scenarios which could be mitigated by hiring equipment.
Are you able to keep up with the regular servicing and maintenance requirements to ensure the piece of equipment remains in safe working condition? This is particularly important if you run a business, as poorly maintained equipment that results in injury to employees means you would be liable for a claim.
Old equipment has a higher likelihood of being faulty, increasing the chances of things going wrong and workers becoming injured. With new equipment that has been safety tested, there is much less chance of this happening.
When you purchase equipment, there are also the additional costs of insuring it in the event of theft. A total of £70 million worth of equipment is stolen from construction sites each year. On average 21% of stolen equipment is recovered, so insurance is a smart move if you are paying over the odds for state of the art new equipment.
Do you have the space to keep all of your tools and equipment when not in use? If not you may find yourself paying additional storage costs to keep them protected from the elements and thieves. Weather related damage is a risk if equipment is kept in the open. You can mitigate the risk of this happening by looking after your tools, but long term storage isn’t an issue when you hire tools.
Transporting heavy equipment between storage and live projects becomes your responsibility with owned equipment. With hire options, all of this can be taken care of for you.
Although renting specialist equipment can seem high at first glance, it’s worth taking into account how much it would cost to buy equipment outright. This is also offset by how much it would cost to repair and maintain equipment throughout the product’s lifespan. Renting also gives you the option to ‘try before you buy’ – you can see how well equipment performs for a particular task without committing to use it for it’s entire lifespan. You always have the option to take it back if you are not happy with a particular model or piece of equipment.
You may have already assessed that you require specialist equipment for a project, but haven’t got the authority or budget to justify purchasing it. Renting allows you to overcome these budget restraints, selecting what equipment to hire at what stages of the project, saving space and money.
There is no need to have equipment sat around for long periods of time unused. Renting allows you to plan your equipment hire around when you need it, with the option to flexibly collect equipment, with the option to extend the rental period should you need to.
Depending on your project, you will need a variety of different tools and equipment. When it comes to drills and most common power tools, it makes sense to spend the money and buy quality options outright that will last for many years to come. But with more specialist equipment such as access equipment and ground excavation tools, buying these items outright can be much more costly.
The construction industry today is highly competitive, which is why it is so important to keep costs down in order to give you the advantage when competing for construction bids. With the predictable monthly costs of rental equipment, this will allow you to accurately forecast your budget which can help you stay more competitive.
Tools and equipment can affect the type of jobs you are able to take on and the level of service you are able to offer too. For example your business is able to hire equipment you do not currently have, enabling you to expand the range of services you can offer and jobs you can take on.
At Basically Tool Hire we can offer reliable plant hire equipment of all types to help you get the job done. Whether it’s heavy machinery, access hire, machinery repairs or more, we can help. Get in touch with our friendly team today to discuss how we can tailor our services to meet your business needs.