The construction industry is an essential sector that contributes significantly to economies around the world. In developed countries like the UK, many factors impact the growth and stability of this field. For instance, demand from the housing market has a direct impact on other sectors that depend on the availability of commercial and residential construction projects. In line with this general observation, the plant hire sector also gained a vital boost when housing projects started increasing in 2014. It also helped that the government invested in capital expenses to aid the housing market.
Currently, the UK plant hire industry is worth at least £7.1 billion. And according to projections, an annual growth rate of 2.9% will be sustained this year. Firms are expected to expand their operation and hire more employees to remain competitive in an already saturated market. Nevertheless, there’s still room for more as both big and small players join the sector.
What fuels the demand for plant hire services?
For plant hire companies like www.ruttle.co.uk, their business model revolves around convenience, accessibility, and reduced costs. Realistically, contractors can’t buy every piece of machinery they need to complete a project; hence, this is where plant hire comes in. Indeed, if you look into the reasons why plant hires companies to continue to succeed, the reason goes beyond demand. Some of the benefits of using their services are:
- Renting machinery is economical. The contractor saves money and capital by not buying equipment, and at the same time, also gets access to assistance and expertise from the plant hire company. Depending on the contractual agreement, the rental company may also provide an operator if the contractor doesn’t have one available.
- Confidence to bid for bigger projects. If a contractor wants to bid on or accept larger construction projects, the client often looks at the capability of the contractor to take on the job. The convenience of renting all the necessary equipment helps them scale-up their operation without having to release substantial capital.
- Renting eliminates maintenance costs. Heavy machinery requires regular repairs and maintenance checks. Moreover, you’ll need space for storage and a steady team of technicians to tend and care for these expensive machines.
The benefits of renting plant machinery significantly outweigh any disadvantages. In fact, renting has become a go-to solution, even in developing countries around the world. Any project that requires using some heavy equipment, regardless of if it’s within the construction industry or not, can take advantage of renting to reduce overhead costs and speed up project completion.
Best practices in starting a plant hire business
Now that we’ve discussed the growing plant hire market and why there is a consistent demand for these services, let’s take a closer look at how a start-up tool hire company can penetrate the market. In addition to the capital required to purchase a range of equipment, you’ll need to observe the following tips to succeed in this sector.
- Research and choose a target market. The construction industry is fragmented into several sectors. It’s crucial for a tool hire company to research the market and choose a specific field. Understanding the demand from your potential consumers as well as the existing competition in your area will help you come up with realistic projections for the growth of your business.
- Establish a profile for your customers. After you’ve identified your target market, the next step is to establish customer profiles. If you plan to accept contracts from commercial clients, you need to invest in heavy machinery commonly used in bigger projects like excavators, cranes, cement mixers, and lorries. On the other hand, if you want to cater to smaller consumers such as private individuals, you’ll likely need to consider small construction equipment used in landscaping, DIY projects, and household repairs.
- Specialize in one sector. One way your business can stand out from the competition is to specialize in a specific field or sector. This option is best for start-ups with limited capital. By choosing to cater only to one market, you can concentrate your funds on acquiring essential equipment and employing individuals with the right skill set for the job. For example, you can choose to focus on the gardening and landscaping industry by renting out tools and equipment used by landscape contractors.
- Pricing your products and services. Another critical step in starting a plant hire business is making sure that you price your services and products right. You need to cover overhead costs and other expenses while at the same time making sure that you make a modest profit. If your client were to hire the equipment longer, it’s a common practice in the industry to offer discounted prices. You might also want to look into special discounts you can offer to loyal customers who keep coming back to rent from your company.
- Promotion and marketing. Although the industry is in demand, every business needs to invest in marketing and promotion. First, you need to focus on your company’s image. You need to make sure that your company complies with all industry regulations to invite customer confidence. If there are associations for plant hire companies in your area, joining would do well for your reputation. Promoting your business can involve a variety of efforts, both offline and online. Regardless of your preferred marketing channels, what’s important is that you advertise your business as a high-quality and reliable provider.
Starting a plant hire business is a monumental effort. Edging out the competition, especially those already well-known in your area, could be difficult – but not impossible. Fortunately, the demand for plant hire services is still at a relatively steady rate; hence there’s plenty of business for everyone. However, starting your enterprise on the right footing will have a big effect on your success.
The best practices outlined above are only the basics of what you need to do to become a successful plant hire entrepreneur. Like any business, your determination to provide exceptional service and become a key player in the industry is crucial to the longevity of your company.