Choosing between Plant Hire and Plant Purchase
For any construction company or any type of business that requires plant machinery for single projects or for long-term needs, there is a decision to be made as to whether to choose to work with a plant hire company that offers machinery and equipment as and when you need it, or to choose plant purchase and outright buy what you need now and use that for years to come. There are big benefits to both, but in most cases, the cashflow needs of a business and the flexibility required on many construction sites, means that the advice and service from a plant hire specialist is the more desirable option.
The first thing you need to do before making a decision between plant purchase and plant hire services is to make an extensive list of all the plant machinery and equipment you need. This should include everything you require all the time, as well as items that you need from time to time. This will give you some idea of what you are looking for and provides a good base to make a fully informed decision.
Cashflow is an important issue for all businesses. You need to weigh up whether it is cost effective to spend big on an initial outlay to purchase plant machinery that you will definitely need. The problem with this approach, is that it might leave you short of cash to pay bills, as well as the fact that the machinery you purchase will immediately depreciate the moment you begin to use it, meaning it is not a long-term investment that you will see a direct financial return on (other than the work it helps complete).
This is where plant hire comes into the question. It will allow you to have lower outgoings, spend money only when you need to, and give you the choice of a much wider selection of machinery and equipment. Not only that, but you’ll have access to newer models, rather than stuck with the same model for years to come should you go down the plant purchase route – as your investment must be used consistently and for a long time to make any financial sense. Plant hire services allows you to take advantage of technological advancements in newer models and have flexibility to use the precise piece of machinery that you need on each project and each task, rather than sometimes fitting round pegs in square holes because you’ve spent a fortune on plant purchase. You might get the job done, but will it be as good as with the latest model that you could have hired?
There are many considerations to make when you are deciding as a company whether to go down the route of buying the machinery and equipment that you need for the business or whether to go down the plant hire route. There are pros and cons to both, but for most start-up businesses, growing businesses or those that have a need for different types of equipment on any given project, plant hire services makes much more sense than plant purchase for reasons of cost, flexibility and efficiency on site. With that in mind, if plant hire is the right choice for you, ahead of plant purchase, make sure you make the right choice of plant hire company to work alongside you and to maximise the potential of every single project.