In the current mining downturn, hiring instead of buying machinery and equipment is helping mine operators keep tight budgets in check, according to HRIA’s James Oxenham.
Continuing tough economic conditions means capital costs and spending decisions are coming under greater scrutiny, especially for the mining industry which is working through difficult times as investment growth slows significantly.
Many mining companies and related industries are cutting costs, focusing on core assets and looking to maximise the value of every dollar spent.
The hire industry in Australia helps focus business attention on managing core business by drawing attention to the economic and environmental advantages of renting instead of buying outright.
Led by the key representative body for the hire industry in Australia, the Hire and Rental Industry Association (HRIA), the hire industry is increasing awareness of a compelling business case around the relative merits of hiring what you need versus purchasing and owning it.
At a time when market economies are struggling to recover from financial hits, hiring is desirably cost-effective and beneficial business edge extends business options.
Hiring equipment is fully tax deductible which makes good economic sense during tough economic conditions. By hiring, mining companies and related businesses can offset any outlays, recoup some of their operational costs, and limit their overall capital equipment purchases, all the while enabling a wider range of jobs outside what they might normally do.
In this environment, hiring becomes a smart alternative to buying outright and whether you are a business or a private person, there is a serious proposition to consider. People are increasingly seeing the advantages of becoming more hire-conscious.
When hiring, the mining industry can have immediate access to a huge range of modern equipment. New equipment can be trialled, via hiring, on the job for the days required without any capital outlay or the need to take on new debt.
The desirably cost-effective and beneficial business edge of hiring has helped all industries utilising its equipment and services to provide an increased range of services and capabilities by extending their options.
Once the job is finished, the equipment can be returned, without the worry of depreciation, repairs, maintenance and storage costs, or whether that piece of equipment will ever be needed again.
All the costs are up front for the equipment hired and adding to the benefits, equipment hired from an HRIA member company guarantees equipment reliability and efficiency.
Essentially, hiring returns control to the end user by offering options, freeing up capital and allowing end users to plan when equipment is required and when it’s not.
The hire and rental industry in Australia professionally meets frequent and widely variable business needs with safe, up-to-date and specialist equipment for dedicated jobs.
Things have been tough economically now for quite an extended period and of course, every market segment has had to review its operations and offerings and work smarter and more effectively to be productive and cost effective when every other business is working hard to do the same.
The hire industry is no different. As the key representative body for the hire industry in Australia, the HRIA works hard to keep our entire industry working safely and to Australian Standards. It is the role of the industry association to ensure our industry meets and adheres to strict safety regulations and legislation across all the relevant codes.
There are also compelling environmental reasons for choosing to hire, as bought equipment often languishes unused for long periods and is essentially wasteful in an era when resources are scarce and people are increasingly conscious of their carbon footprint.
How many time does business buy equipment and use it once or twice on specialist jobs? Hiring is often a better use of money and better for the environment, because hire equipment is always well maintained and will be used many times over due the course of its hire lifespan offering a greener alternative.
Another major benefit of hiring is education and instruction on the safe and correct use of equipment operators receive upon hiring from reputable hire companies and HRIA members.
OPERATOR AND WORKPLACE SAFETY MAKES GOOD BUSINESS SENSE
End users have the opportunity to be instructed in the safe handling of building and renovating equipment simply by hiring the equipment from an HRIA member business.
Members of the HRIA work hard to make operators aware of the importance of safety. As part of the process of hiring out equipment, hire companies conform to a rigorous set of regulatory requirements plus have additional systems and services in place for operator education.
Regulatory requirements identified by the Workplace Health & Safety Act, and overseen by WorkCover Inspectors in the field, are stringently adhered to by HRIA member companies to ensure the highest standard of safety for both employees and hirers of equipment.
The HRIA, as a national industry association, maintains a close eye on changes to safety legislation and works with its members and regulators to develop national codes of business management to ensure safety measures are identified, adopted and implemented into HRIA member businesses.
All rental equipment is thoroughly checked and maintained prior to each hire and electrically tested and tagged as applicable. All rental equipment is hired out complete with written operating instructions, warning decals and labels, and support manuals as required.
The hirer is instructed on the use of the equipment and further advice is available through brochures and videos. The hire company also checks the hirer’s qualifications to operate certain types of plant where a licence is required.
To increase end user accessibility, the HRIA website features a comprehensive database and search engine capable of locating specific equipment to the nearest rental supplier location. Making this location identifier even easier, the new HRIA website also features Google maps which displays local street maps and directs users to their nearest hire location.
Businesses that hire their plant and equipment eliminate hefty upfront capital expenditure or funding, while freeing up resources to focus it on where it really should be – on the core business of managing their regions.
With over 700 rental company members and valued at $6.5Bn (IBIS), the hire and rental industry covers a range of equipment across varied industries, from general plant hire, access and portable buildings, to temporary power generation and excavation equipment.
HIRE INDUSTRY EXCELLENCE AWARDS
The Hire Industry Excellence Awards saw two winners taking home top honours for the first time in history.
Recognised for their outstanding achievement and industry excellence in front of 300 industry peers at the awards night in April, Access Group and Prime Rentals were both acknowledged for their overall business operation and expertise as Rental Company of the Year.
All the winners of the 2015 Hire Industry Excellence Awards were announced at the culmination of the HRIA National Convention in Adelaide.
Competition for the Hire Industry Excellence Awards is always high with rigorous assessment and appraisal from the independent judging panel which follows an established set of criteria pertinent to the industry and market.
This year Hire Industry Excellence Awards winners included:
- Rental Company of the Year – Access Group Australia and Prime Rentals
- Rental Company of the Year (under $5m) – Uphire
- Rental Company of the Year (Events Division) – Excel Events
- Supplier of the Year – Hiretech
- Supplier of the Year – Access Division – Genie Industries
- Best New Product – Baytex Earth Anchors
- Best Exhibition Stand (Indoor) – Wacker Neuson
- Best Exhibition Stand (Outdoor) – Genie Industries
Nominees are assessed by the judges across almost 50 criteria ranging from
presentation, to systems and procedures, OHS compliance, community involvement and customer testimonials.
This year finalists in each category included:
FINALISTS – Rental Company of the Year – Events
Excel Events
Renniks Events
Wow Structures
Your Event Solutions
FINALISTS – Rental Company of the Year (under $5M)
All Lift Forklifts
Allwell Hire
Baxter Hire
City Hire
Complete Hire Equipment
Cowra Hire
Uphire
FINALISTS – Rental Company of the Year
Access Group Australia
Classic Hire
Preston Group
Prime Rentals
Top End Access
“The annual Hire Industry Excellence Awards provide an opportunity to pay tribute to those companies providing outstanding service in all categories of the hire and rental market. We warmly congratulate all finalists and winners in the 2015 field,” HRIA National President Jeff Bernard said.
The hire industry in Australia covers an enormous field of industries, providing equipment for construction, mining, arborist and horticultural/landscaping, excavating and earthmoving, road construction, materials handling, working at heights, home handyman and DIY segments as well as the events industry in Australia.
James Oxenham
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