Counting the cost of ad hoc pump hire?

Many companies supplement the number of fixed installed assets on site with hired pumps, for both planned and reactive requirements. It’s a sound strategy that avoids the costs of acquiring, managing and maintaining a diverse fleet of pumps, particularly for companies that have varying demands and applications.

Hidden costs

However, the financial benefits of hiring pumps on an ‘as needed’ basis can be eroded if the hire spend is not closely and carefully managed – and in many cases it is not.

The problem stems from the fact that controlling hire costs is notoriously difficult. Pumps may be required for a variety of planned and unscheduled requirements for different departments.  This can result in a number of disparate pump hire agreements with no-one in particular overseeing a hire strategy, monitoring the amount of time the equipment has been on site ( or whether it is still needed) and no cohesive approach to managing total cost. 

Often this situation is due to the fact that pump hire requirements at the beginning of the financial year are an unknown so, rather than enter into long-term arrangements with a trusted provider, some companies prefer to procure hire equipment on an ad-hoc, cost-led basis. However, this approach to minimising costs by purchasing on an ‘as needed’ basis can actually increase costs.

It potentially means adding to the company’s supplier base, with all the administrative costs associated with running multiple accounts and it can make management of pump requirements and the pumps on site  more difficult. Maintenance may be charged as an additional cost and it is not unusual for pumps to remain out on hire for longer than they are really needed because the person responsible has  neglected to alert the hire company that the equipment is no longer required. 

Finally, in times of high demand, it can sometimes result in a ‘make do’ solution because most pump hire companies will prioritise  customers with whom they have an  agreement and ad hoc enquiries can be specified with a ‘best available’ solution rather than a ‘best fit’.  This may mean that the client could initially have a higher number of pumps on site, or less fuel / noise efficient versions. 

Service and savings

Working with a trusted supplier and putting a hire agreement in place not only gives a client greater financial control, with hire rates and payment terms agreed up front, it also means service level agreements can be put in place to ensure greater accountability. 

A hire agreement is a way of working in partnership with a pump specialist who can spend time getting to know a company’s business and their sites so that they have a better understanding of the customer’s potential needs and can respond more quickly and accurately to the brief when pumps are required.

The hire specialist may also be able to offer clients with  hire agreements preferential access to specialist equipment that may not be available on demand from other providers. This helps to avoid potential knock on costs of using inefficient or inappropriate equipment and any maintenance costs not  covered in an ad hoc hire contract.

Most importantly of all, a hire agreement can help companies to monitor and manage costs through regular and accurate reporting. For example, Sykes Pumps provides regular reports detailing the status, location and length of hire for all equipment on site, ensuring management teams have access to the data they need to identify equipment that has remained on hire for longer than expected periods

Peace of mind

For many industrial sector businesses, pump hire may not be a regular requirement but it is likely to be business critical and could be costly. A pump hire agreement will ensure that those costs are minimised,  that pumps are available quickly and that they are correctly applied to avoid any business or process interruptions.