Why long-term rental is beneficial to factories and general industry

With the rapid development of technology, customer, consumer and industry’s future needs are virtually undefined. Our prediction of future requirements is ever-changing, which makes an adaptable and highly responsive business the one that will likely flourish.

With the unsteadiness of the market, affected by factors that fall out of the control of industry participants, businesses need flexible solutions. Hiring enables organisations to weather the ups and downs of the economy. If you rent and the market deteriorates, are in a position to return the equipment. On the other end of the scale, if you win new projects or take on new work, you can hire more equipment to meet your immediate needs, without taking on greater risk.

Moreover, purchased equipment is not only costly but can become redundant with the introduction of new technology.

Henry Fourie, Business Development Manager from Rand-Air, specialists in the long-term rental of compressors and generators says that outsourcing eradicates concerns associated with the depreciation on equipment, service, maintenance, the cost of technicians, insurance, fluctuating interest rates etc.

Buying compressors, generators, or any other heavy equipment for that matter is a huge investment and requires capital outlay. Renting the same reduces the burden of up-front investment which is straining on businesses. Given the inherent benefits of renting, it is clear to see why more and more businesses are choosing to go this route. In 2014, it was reported by Statistics SA that the total expenditure on property, plant and equipment hire for the third quarter was estimated at R108 031 million, compared with R87 209 million for the revised second quarter of 2014.

“At Rand-Air, we know that you can never be certain of your next project, and as every project is different, it might require specialist equipment that you don’t own. This is where renting becomes favourable. Also by renting equipment, you reduce the risk of ending up with an unused piece of machinery in your factory.”

When you purchase machinery, you are not only investing in the equipment itself, but you also need to take into account the long-term investment in terms of maintenance and repairs. Renting cuts out these costs entirely. It eliminates the expense of breakdowns and regular maintenance checks. Aside from saving money, it gives peace of mind knowing that machinery is always running at optimum and is well-maintained.

Rand-Air believes that organisations should focus on their core business which is why they have an Industrial Rental model. Not only does this take over the responsibility associated with the supply of air, power and onsite nitrogen but it increases business productivity and enhances cash flow.

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