Future of hire? Look to the circular economy

WITH BUSINESSES AND CONSUMERS ACROSS THE COUNTRY LOOKING FOR WAYS TO IMPROVE SUSTAINABILITY OUTCOMES, WHAT ROLE DOES OUR INDUSTRY PLAY AND CAN WE DO MORE?

The question is, how can we further capitalise on this business model and help our customers improve their sustainability outcomes? Firstly, we’ve got a role to play in helping educate our customers, so they better understand the benefits of hiring equipment over purchasing it. Reaching new markets and growing the hire industry are strategic goals of the HRIA. The ‘Why Hire’ campaign is one way we help members promote their businesses.

What’s driving the larger, tier one customers is how to deliver on net zero or emissions targets and they’re looking for innovations from OEMs to make the move from diesel to battery, hydrogen, HVOF or other power sources. As suppliers, that means understanding customer and government demands, especially in relation to emissions and sustainability, and taking a longer-term view when investing in new products and equipment.

For the tradies or DIY customers, it’s potentially a different story. Sustainability won’t always be top of mind — a focus for this market segment is to get a job done quickly, reliably and at minimal cost. But with a growing number of operators now becoming more aware of their carbon footprint, they’ll be looking for products powered by cleaner, more sustainable energy. Fortunately, with new technologies and innovations entering the market to cater to tier one customers, these will flow on to other end users of hire equipment.

Customers, from tier one construction firms to a weekend DIY enthusiast who hire equipment, know that owning it is not a necessary condition of getting the job done. HRIA member companies have access to resources to promote this message. This in turn will help their customers understand the role that hiring equipment plays in the circular economy.

We will continue to be an integral part of the solution by helping our customers meet their sustainability targets, reduce emissions and capital investment. And with support for the growing circular economy, we are uniquely positioned to deliver.

Across Australia and around the world, business, industry and governments are grappling with ways to waste less and recycle more. It's a complicated problem with no quick or easy fix, yet there are ways to extract more value and reduce environmental impact by using – and reusing – products for as long as possible. A circular economic model differs from the more traditional linear model of resource extraction, production, distribution, consumption and waste. The circular model looks to reuse, repurpose, remanufacture and recycle, which reduces overproduction, over-consumption and waste. This is referred to as the circular economy and at its heart is the hire industry.

I’ve just completed a Cambridge University course on the topic of the circular economy and sustainable business strategies. This was a great chance to connect with people from different industries around the world and learn more about how they’re tackling the issues of sustainability. The good news is that in many ways, we’re ahead of the game. The hire industry was operating several decades before the likes of Uber and Airbnb when it came to selling the service an asset provided. Circular economies work when there’s greater utilisation of assets and that’s exactly what we offer our customers.

I look forward to welcoming you to HIRE23 in Sydney where you will see the latest innovative and sustainable solutions, showcased by suppliers to the hire industry. See you at HIRE23.