The last few months have shown how quickly situations can change, with the COVID-19 pandemic sending shockwaves through the global economy and affecting business operations in every industry. If contracts start to dwindle, hiring reduces the risk of equipment sitting idle and also allows companies to trial how it fits into operations without committing to a large initial investment.
Cost is a significant factor as poly welding equipment typically requires a medium to large initial outlay. Hiring has the advantage of removing ownership costs such as storage, maintenance and calibration, allowing for more working capital, and costs can be calculated week to week, which makes budgeting easier. This is particularly important when the full economic impact of external factors such as COVID-19 are still unknown.
For long-term projects, it makes sense to buy poly welding equipment as you’ll pay less in the long run. However, if the equipment is only for specific contracts or one-off jobs, hiring is probably the better option. A good rule of thumb is that if you use the equipment less than 60 per cent of the time, it may be better to hire – this figure may increase if the pandemic continues to disrupt supply chains and put entire industries on pause.
Repairs and maintenance
Buying comes with the additional costs associated with maintenance, support and servicing, whereas the supplier is responsible for these when hiring welding equipment. Hiring also provides access to the latest technological advances without the commitment of buying.
When faced with the decision to buy or hire welding equipment, civil contractors and utility companies should consider what the job involves, their budget and how much flexibility they need. There are pros and cons for both buying and hiring equipment, and in times of crisis, risk mitigation is key.
Whatever you choose to do, it’s essential to go through experienced suppliers such as Caldertech Australia – which has been supporting customers in choosing their PE pipe fusion or flow control equipment for more than 30 years.
This partner content was brought to you by Caldertech Australia. For more information, visit caldertech.com.au.