Capital Equipment News March 2022

PLANT HIRE

Plant hire contracts are generally regarded as off balance-sheet finance and are usually very flexible.

THE PLANT HIRE INDUSTRY IN TIMES OF MACRO-ECONOMIC UNCERTAINTY

A ddressing the question of how plant hire solutions help plant-driven businesses manage their capital equipment better, Rentworks Africa business manager Sumaya Rahim says plant hire is a “perfect solution” for short-term projects where the purchase of new or used equipment is too expensive to be justified in the project. She says plant hire can be an effective stop gap between time of delivery of new equipment and work commitments that need to be carried out. “Plant hire contracts are generally regarded as off balance sheet finance and are usually very flexible, allowing customers to get out of contracts with minimal costs, whereas an equipment lease contract with a funder will always have a financial settlement to be dealt with. Depending on the age of the agreement, the settlement amount could be very significant.”

Plant hire solutions can help plant-driven businesses to better manage their capital

equipment, but the plant hire industry, like most others, is faced by uncertainty in the macro economic environment and commodity pricing, which causes bottlenecks in OEMs’ ability to deliver equipment. Capital Equipment News talks to a plant hire service provider and a heavy equipment auctioneer to find out more.

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