Tools, Plant & Equipment Hire equipment can be used to advance different stages of a project can help reduce idling time and prevent people reactively panic ordering different pieces, which then end up not being used.
Neeral Shah
Using technology to track and manage equipment Fundamentally, technology helps contractors manage equipment more efficiently. Every project manager has a story about forgetting a misplaced piece of equipment, only to re-order the same piece and find the original all in the same day. While it’s completely understandable given the vast nature of construction sites - when purse strings are tightening, this type of needless spend must be reduced.
HOW TO HIRE EQUIPMENT COST EFFECTIVELY IN ECONOMIC UNCERTAINTY Neeral Shah, Chief Executive Officer at YardLink High interest rates, increased borrowing costs, and inflation saw the level of activity in the UK’s construction sector drop to levels experienced during the start of the pandemic. As such, many construction firms are currently facing a decline in new projects, piling on more pressure than ever to drive costefficiencies. One area ripe for cutting unnecessary spend is equipment hire. Currently overwhelmed by needless travel, manual processes, and underutilisation, streamlining equipment hire can help boost profitability in a tough economic climate.
Looking to source equipment locally, and re-examine supply chain shortlists, might seem like a daunting task initially. But, starting with one area of equipment hire - such as excavators - then speaking to a few local suppliers and building up a network, is the first step. The savings will start to follow shortly after. Reduce idling time Maximising equipment is key when it comes to decreasing spend. Sounds simple, but construction firms are losing large sums of money on equipment that’s simply not being used. This is where clear project management becomes crucial. Planning out what
So, here’s a couple of tips to manage the equipment hire process more cost efficiently. Leverage a localised supply chain When it comes to sourcing equipment many don’t take into account the distance equipment travels to reach a project. Instead, supply chain shortlists tend to be based on historic relationships. Yet, the longer the distance equipment travels, the more the total hire service costs. It also increases logistical complexities, making it more difficult to manage projects effectively. When you’re sourcing many different pieces of equipment, for multiple different projects, this can really start to add up.
Neeral Shah
34 Construction UK Magazine - April 2023
Using project management software helps keep a digital log of equipment onsite, as well as imminent deliveries and returns, helping increase overall visibility. This not only enables contractors to better track equipment, it can reduce surplus, and therefore drive costefficiencies. Crucially, technology also enables project managers to track when equipment needs to be returned. This is a game changer for an industry that continually racks up payments for late collection. By having total visibility over what equipment is onsite and when different pieces need to be returned digitally, project managers can cut spend on extra equipment while steering clear of late collection fees. The start of 2023 has indicated the next year will be tough. But, if construction companies pay more attention to planning and project management, working smarter than ever before, then adversity can be turned into opportunity.