Capital Equipment News June 2017

view that if companies need a compressor regularly enough over its estimated use- ful life, the case to purchase it outright is probably strong. This view is shared by Gary Neave, Business Unit Manager at Doosan Portable Power, who believes that rental fits the bill for short-term contracts of a year or less, while anything beyond that may make a strong case for buying. Duane Kruger, General Manager of Goscor Compressed Air Systems, part of the Goscor Group of Companies and the authorised distributor of Sullair and Ozen compressors in southern Africa, believes that the decision to rent or to buy normally comes down to the company’s financial status. He believes that larger, blue-chip companies with the necessary financial muscle may afford to purchase their own compressors, while small to medium entities with little or no capital outlay could cost effectively service their compressor needs through rental. Kruger argues that the allure of ownership has to do with how a business manages its finances and notes that buying a compressor is a result of a better balance sheet. The rental case At the peak of an unsteady market with few and far between contracts, Fourie believes that hiring a compressor enables organisations to weather the ups and downs of the economy. “If they rent and the market deteriorates, they are in a position to return the equipment. On the other end of the scale, if they win projects or take on new work, they can still hire more equipment to meet the immediate needs, without taking on greater risk,” argues Fourie. According to Fourie, the biggest advantage of renting is the convenience. “Another consideration is the capital outlay required to purchase equipment such as a compressor. Investing in equipment is a costly exercise and most businesses don’t realise that this is a long-term investment as it requires services, maintenance, insurance, and is impacted by fluctuating interest rates,” says Fourie, adding that owning equipment also means that it now forms part of the

CompAir reiterates that rental is a perfect fit for short-term jobs when companies want to meet unplanned or infrequent compressor needs.

Rand-Air believes hiring a compressor enables organisations to weather the ups and downs of the economy.

B uying or renting are the two ways of satisfying a company’s equipment needs. Compressors are used in a wide range of industrial fields ranging from mining, manufacturing, petrochemical, chemical, construction, through to automotive, drilling, electronics, oil & gas and power plants, to mention a few. The question that often arises among end users is: should I buy an air compressor or should I rent one? There are pros and cons to each side. Henry Fourie, Business Development Manager at Rand-Air, claimed to be the largest fleet owner of compressors and Rand-Air • Has an extensive fleet of over 700 Atlas Copco compressors and generators • Fleet is spread across 10 branches and agencies in South Africa • Compressor units range from 190 to 1 500 cfm • Pressures of up to 25 bar • Offers oil-free compressors with pressures of up to 24 bar QUICK FACTS

generators for rental in South Africa, with units ranging from 190 cfm to 1 500 cfm, and with pressures of up to 25 bar, believes that the most important consideration for companies that need this equipment is what works for them from a financial standpoint. “With the unsteadiness of the market, affected by factors that fall outside the control of industry participants, businesses need flexible solutions,” says Fourie. Ashik Singh, National Sales Manager – Rental at CompAir South Africa, reiterates that rental is a perfect fit for short-term jobs when companies want to meet unplanned or infrequent compressor needs. He is of the

Goscor Compressed Air Systems • Distributes Sullair and Ozen compressed air

• Oil free units of 1 500 cfm CompAir SA (Rental) • Rental fleet of about 150 units • Offered across four branches

• Sullair range from 185 to 1 150 cfm • Pressure supply from 7 to 35 bar • Ozen range up to 640 hp

• Electrical units from 20 to 4 500 cfm • Diesel units from 190 to 1 800 cfm • Oil free air from 200 to 1 800 cfm (diesel or electric)

Doosan Portable Power • Low pressure units from 185 to 1 000 cfm • High pressure units from 760 up to 1 070 cfm

CAPITAL EQUIPMENT NEWS JUNE 2017 15