Coping with capex constraints caused by Covid

The company’s latest campaign, ‘Hire Efficiency Expectations’, encourages companies to take an innovative approach to optimising their processes and equipment, so they can do more with less. Manufacturing specialist at Aggreko, Matt Watson, explains: “In this altered business landscape, where purchasing permanent installations may no longer be possible, it becomes even more vital to improve process efficiency. By taking an innovation approach to applications and solutions, process, production and operations managers may be surprised by what savings can be achieved.”

A survey of 200 energy managers conducted by the company in 2019 demonstrated what it calls the ‘capex crunch’ problem, with 59 per cent of respondents saying their requests for new equipment to reduce energy consumption had been turned down. Aggreko expects this figure to increase post-pandemic and believes that, with 59 per cent of those surveyed also saying they did not use hire to avoid capex restrictions, different perspectives may be needed.

Adds Matt Watson: “By looking at strategic hire as a viable method of financing new installations, companies can avoid the further capex constraints caused by the coronavirus. Equipment rental gives businesses a route out of being reliant on ageing, unreliable installations that provide diminishing returns. Additionally, hired solutions are ideally placed to guard against the volatility inflicted by the pandemic. The modular and scalable nature of such solutions allows businesses to react quicker to changing circumstances and the peaks and troughs of demand, while maintaining excellent process efficiency throughout.”

For further information on the company and its campaign, visit www.aggreko.com