Purchase or Hire? 1

Purchase or Hire?

10 July 2018

Messi or Ronaldo? Captain American or Iron Man? Will Young or Gareth Gates? Questions that plague the public. One question outweighs all these and others of a similar vein. A question which keeps successful business owners awake at night; brings out hot sweats when asked during a business meeting; shall I purchase or hire plant?

Quite possibly the most important question in the construction world. Purchase or hire? Own or rent? The sheer number of mental calculations one must do before they can come to an answer in which they have at least 95% confidence is astronomical. It’s not a question that can be answered in one sitting. One must lock themselves away from human contact, look at financial accounts, project plans, and order books, and then ask advisors and consultants and accountants what the best solution for their company would be.

Here at PAL Hire, we make it very simple. We take all the calculations you could possibly do, we take all the internal debates, external debates, moments of not knowing where or who you are, and we’ve put the answer into our name – PAL Hire. Hire.

Benefits of hiring plant categorically outweigh the benefits of purchasing plant

Your resources aren’t pushed to the extreme. As a construction company, if you’ve purchased plant, you’ve then got to ensure you have enough money coming into the business to not only survive, but generate enough revenue to cover twice the amount you’ve paid for plant, otherwise you will succumb to economic forces and cease to exist. That’s the harsh reality several construction companies have faced since the economic situation in which we currently find ourselves.

You’ve not got a brand new, £100,000, state-of-the-art digger sat in a garage awaiting the day you open the doors and let the light in for it to be used to its full potential. You wouldn’t purchase a Ferrari in a city where you can’t put your foot down and think for a millisecond you could’ve been Michael Schumacher if you were born in Germany, so why would you do the same with plant, if you cannot be certain you’ll use it or secure a project in which it’ll be used?

Providing a balanced argument

You’ve secured a lucrative construction project, but for a few weeks you’ll need to use a unique piece of equipment manufactured from a finite resource only found in the deepest suburbs of Timbuktu. Do you hire, or do you purchase? There could be two streets of thought regarding this question. There are some instances in which purchasing plant could be the sensible option, but extensive pre-planning and research would be required for it to be financially feasible.

It could be fair to say from the example this piece of plant is highly unique. Such equipment could appreciate over time – unique machines generally tend to follow this curve. The possibility of purchasing this plant and making a profit on it at a later point in time is one that should be considered. Also, if you are one of the few companies owning a unique piece of equipment, this could enhance your order book as you won’t need to hire this unique equipment, thus reducing overall projects costs for a potential client.

PAL Hire’s customer service team always goes above and beyond for our clients. They provide the best service possible. The word “no” does not exist in their vocabulary. The word “no” does not exist within the walls of PAL Hire’s office. Given the experience held within our customer service team, it would not surprise me if they had connections with a supplier in Timbuktu or orchestrated a way to resource the materials and personally deliver the machinery to your office.

If the equipment you need for your project can be found in all corners of the UK, or the world, the sensible option is to hire through PAL Hire. PAL Hire can provide a multitude of plant, tools, equipment, and machinery, anything you need, any time you need it, and anywhere it needs to go, PAL Hire can service you.

If you’re struggling with the age-old question of “purchase or hire,” speak to one of our team on 0844 288 7265 and the team will put all your concerns to rest and let you have a good night sleep knowing everything is under control.