Plant hire services is a relatively new industry developed in western countries. Although most of the first companies that ventured into renting out equipment for various sectors were family-owned, there are a few large companies that operate internationally and have annual revenue of almost 1 billion Euros. Out of 100 large equipment rental companies, forty operate in European countries. The UK is one of the countries in the world with a high concentration of plant hire services.
What led to the fast growth of the industry?
The industry as a whole owes rapid growth to the following reasons:
- The range of advanced equipment available. Part of the success of Plant hire Preston companies and those located in other areas is the availability of high-end and sophisticated construction equipment readily available anytime the customer requires it. This state-of-the-art equipment may be rented with or without an operator.
- Compliance with regulations and industry standards. Rental companies are responsible for making sure that each piece of equipment for rent is up to code and has undergone all safety checks before delivery to the project site. Rental companies also handle the maintenance of these machines which helps the renter save money on repairs and hiring additional staff.
- Controlled capital release. Contractors can minimise and control releasing capital if they want to meet specific profit margins for a project. Equipment rental is an excellent solution to accessing heavy equipment at a fraction of the cost of buying.
The UK plant hire industry is also experiencing an all-time high in profits because of the demand from the residential and commercial construction sector.
What to expect from equipment rental services
Although equipment rental has been the go-to solution for many contractors, there are still a few people who feel apprehensive about the prospect of renting versus buying equipment. Will renting be more economical in the long run? Is renting the best route to take if you want to expand your business?
One apparent reason to consider equipment rental is to reach profit margins and maintain the expected bottom line. A construction business relies on acquiring projects which means that if you invest in heavy equipment now, it is not that easy to recoup the cost and earn profits. Renting allows you to stay within your projected expenses for a particular job until its completion.
Rental companies usually handle maintenance, delivery, and repairs if needed. As such, contractors can focus on the essential aspects of the project and not worry about complying with equipment safety standards and regulations.
Rental agreements vary from one company to another. If you need an operator to handle the machine, you may include it in the terms of the rental. Paying for equipment rental depends on how long you need the equipment. You can rent equipment for days, weeks, and months at a time.
Rental companies may include insurance for the equipment they rent out which is an important aspect a renter needs to look into as accidental damage to the equipment may lead to additional expenses for the contractor if there is no insurance included in the rental agreement.