Many large companies outsource parts of their labour force equipment needs from hire businesses. The cost of owning equipment became part of companies’ regular ongoing financial analysis. Many businesses came to the conclusion that it is often better to hire part of their needs rather than owning all of it.
Another factor driving the hire market has been the enormous and rapid changes in technology. Ownership costs can be high if the plant becomes obsolete with a change in technology. This was particularly the case for computers, telecommunications etc.
The household market has also increased its usage of hire businesses, especially for short-term needs. Electrical rentals (eg televisions etc) have grown, as some people prefer to have the most up to date technology. By renting/hiring the equipment, they can replace it after one or two years.
Four types of hire businesses include plant hire, personal and household goods hire, car hire, labour hire.
Plant hire includes a wide range of products such as industrial machinery, computers, construction machinery, office equipment, general plant and equipment.
Plant hire is predominantly dominated by the business sector. Most household hiring comes from short-term hire for gardening or minor renovations around the house. Within the business sector, the mining and construction industries are the main users of plant hire.
The key to success in the plant hire industry is having modern and well-maintained stock and supplying customers on time and when they need.
The personal and household goods sector of the hiring market includes bicycles, camping equipment, domestic appliances, furniture, electrical goods, sporting equipment etc. The personal and household goods hire industry has grown mainly due to the increased range of goods that can now be hired.
The main target customers of personal and household goods hire businesses are high income earners and the growing small business/home office market. Some growth is also occurring in the commercial sector such as hiring to motels/hotels, hospitals and surgeries.