Member News
15th October 2010
Graham Arundell, managing director of Hire Association Europe, speaks to ePolitix.com about the hire industry, the recession and spending cuts.
Could you tell us a little about Hire Association Europe (HAE) and the work that you do?
HAE has been representing the hire industry for over 30 years. Our work is focused on promoting a strong, safe, innovative and customer-orientated industry. Our membership is from plant, tool and equipment hirers, suppliers and manufacturers, and more recently from businesses engaged in events-related hiring.
We offer services to members to help them control costs and enhance customer service, for example, bespoke training packages and hire-specific insurance. Influencing is new to us, so our relationship with ePolitix.com is important as we develop this area of activity and the profile of our industry.
What are the advantages of renting rather than buying equipment; for construction, the public sector and private consumers?
The hire and rental model has always been a strong one, particularly if you view our industry as a combination of enabling and logistics. Getting equipment, often of a highly specialist nature, on to a building site, or a highway undergoing maintenance, or another development when and where it is needed, is particularly beneficial. Add the fact that maintenance, safety-checking and initial capital costs are all part of the hirer's responsibility, and the hire proposition becomes even more attractive. This holds true for private and public sector customers, as well as for individual customers looking to do work on their home or garden.
How has the hire industry been affected by the economic downturn?
Our biggest customer in plant, tools and equipment hire is the construction industry, so the downturn in house building and general development activity has had a major impact. We are seeing signs of recovery but things remain fragile and we are all awaiting the next phase of spending reductions in the public sector. There is also a major effort to diversify by hire companies, for example; into facilities management and, particularly by larger hire businesses, to consolidate depots and to upgrade the customer experience at the new or refurbished locations. The hire industry is principally an enabler of other activities so when demand for these lessen, hire faces a slowdown.
The hire industry plays an integral role in local economies. Could you tell us more about this?
Sure, our members trade across the UK so nearly every town will have a hire presence. It may be a family-owned independent operating from perhaps a small number of locations or a single depot. Alternatively, it may be a national or regional business with hundreds of depots across the country.
Each depot has employees with a range of skills, including safety and maintenance, drivers, fitters etc. Given the wide stock (or inventory) held at depots, team members will have specialist knowledge across the range. This investment in skills and training is crucial to the future success of our industry. Also, by enabling other development activity or events to take place, we believe there is a significant multiplier effect in terms of our contribution to local economies.
How does the hire industry promote sustainability?
Mainly through reuse of equipment which is at the heart of the hire industry. The hire model is based on repeat use of a particular item and, with ongoing maintenance and safety checking, this ensures that items are safe to operate over a longer lifespan rather than single use and disposal. By getting advice and instruction on how to use items, this encourages efficient use and can reduce unnecessary energy consumption. Our event organisation was recognised by the Government Office for the South West who were responsible for producing the Greener Events Guide.
In addition, the strong relationship between hirers, suppliers and manufacturers is beneficial to product innovation with environmental and safety enhancements. We believe this positions the hire industry as a positive force for combating climate change and avoiding the disposal of metals, electrical components and other non-biodegradable materials to landfill. Equally there is a potent message for individual customers keen to avoid buying a piece of equipment, using it once and then leaving it in a garage, shed or loft!
Do politicians do enough to actively promote renting, as opposed to buying equipment? Is this message even more pertinent in a time of cuts?
Well, I suppose that the hire industry hasn't been on the political radar but we aim to change that. The hire and rental model really comes into its own at a time of economic pressure, given the need by business and public bodies to conserve capital.
Our members make the capital investment, take on responsibility for maintenance and safety-checking over the lifespan of the equipment, and provide specialist knowledge about its operation. We met a group of MPs last year to discuss this: the hire model is highly relevant as we make a transition from economic expansion to tighter spending controls. Again, this is also of relevance to household budgets as homeowners postpone putting their home on the market and decide to improve or expand their existing space.
What message would HAE seek to send to the government ahead of the comprehensive spending review?
Similar to other business organisations, we recognise and support the need to get the public finances back in order. However, future growth is as important as reducing the national debt. Reductions in funding which prevent renewal of infrastructure, tackling climate change or weakening the skills base of our economy would be counter-productive. The hire industry has much to offer and can provide a major contribution to economic recovery.
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