When Is Hiring A Pump Better Than Buying One?
Atlantic Pumps routinely hire and sell industrial pumps, specialising in challenging slurries such as those that have abrasive, aggressive, extreme pH, or high viscosity properties.
When it comes to hire or buy, we’ve learnt there are many reasons why companies might opt for one route over the other.
Some pump types lend themselves well to short-term hire, with easy transportation and installation whereas others need more onsite work to integrate into a system, so might be better for long-term hire or purchase.
A one-off emergency might make hiring pumps the obvious solution; in different situations, the decision might be more nuanced.
Hire Of Sludge And Slurry Pumps
Sludge pumps are usually built-in to facilities or tanker trucks, making them non-viable for hire companies. LSM peristaltic hose and Toro progressive cavity pumps are different as they are easier to transport, operate and maintain than other industrial sludge pumps.
Hire Is Best When…
Here we share the top reasons that customers choose to hire our pumps, rather than purchase them outright.
- It's for a temporary need. Obviously, the reason that most machines are hired is that they are needed for a particular project, or are a ‘stop-gap’ measure. Buying new and selling second-hand can be very costly, as well as the uncertainty and distraction of off-loading it when no longer needed.
- An emergency situation calls for a pump urgently and often for a short time. Weather-related incidents are becoming more frequent and are unpredictable. Pump breakdowns often stall an entire production plant, making downtime very costly. Hiring additional or larger pumps can help cover an urgent, short-term need without wasting capital funds and floor space.
- Capital budget (CAPEX) vs. operational budget (OPEX). Many companies focus their asset investment on tightly defined areas, limiting outright purchases to their core technology. Hiring is covered by operational expenses, making it a quicker decision/approval process. It's also easier to match the cost of hire to a particular process, product, client, or time period; helping track inputs to outputs.
- High financing costs. When interest rates are high, hiring rather than buying is increasingly cost-effective.
- Proof-of-concept and pilot plants. The likes of exploratory mining companies often set up smaller pilot plants to test out the validity and scope of a site. Hiring pumps gives the flexibility to overcome uncertainties and allows them to test out different pumping setups with small models before purchasing higher-capacity ones.
- De-risking pump choice. Whatever the desktop studies and theoretical calculations show, nothing beats actually field-testing a pump in everyday duty. Atlantic Pumps’ hire-before-you-buy fleet allows clients to test the likes of LSM or Toro in a new or novel application.
- Normal wear-and-tear can be covered by the hire company; this reduces the risk of surprise costs upsetting budgets. You would normally only pay for the consumables, but check the hirer’s T&Cs.
Reasons To Buy Rather Than Hire
- There is an ongoing requirement for pumping. Good quality, well-specified pumps, that match the duty should last a long time.
- The majority of pumps are an integral part of a machine or process and are often included in part of a built-up processing plant ‘package’. This might lend itself to outright purchase from capital funding sources.
- The initial purchase price of most pumps is a lot less than their lifetime operational costs. If a more efficient pump is available, it could well prove beneficial to pay more for it up-front and save big on energy and spare parts over the years.
- The cost of delivery and installation, plus decommissioning and return is high, and the need for the pump is long-term or ongoing. In such cases, a financed purchase is often considered.
- The pump must be specially built to match your requirements. This is often the case for abrasive slurries as the ‘wet parts’ material and configuration has to match the solid's type. As we often say, a correctly specified slurry pump that’s optimised for your application pays for itself very quickly.
- The asset has a high and predictable demand on the second-hand market, meaning depreciation cost could be less than hire and onward sale easy.
- The pumping duty is not something covered by standard pump hire companies. Traditional hire companies steer away from pumps for challenging slurries due to the required manufacturing complexities and cost of installation and decommissioning of large pumps. Diesel-powered, trailer-mounted pumps are widely available and excellent for outdoor emergency scenarios. Atlantic Pumps has a hire fleet of electric sludge pumps that are simple to install, maintain, and operate. Clean-running and leak-free, they lend themselves to pumping sludge in recycling plants, wastewater, sewage treatment plants, biogas, and other facilities.
Conclusion
Hiring pumps and similar assets is becoming increasingly popular, freeing up capital budgets and cash flow to either decrease financing costs or increase investments into new developments.
Consult with your CFO, tax adviser or accountant on how your company makes large hires or purchasing decisions. Both asset depreciation and hire costs can reduce taxable profits but have different accounting rules.
Hiring is a quick and risk-managed way to test technology and concepts.
If you’re still unsure which route – hire or buy - is best, the hybrid approach might be just what you need. Atlantic Pumps offer a hire-then-buy option on LSM and Toro PC pumps, meaning you can test the model’s actual capacity and performance in the real-world, before committing to purchase.
Learn more about the latest Toro T-Line Progressive Cavity Pumps
Learn more about LSM industrial peristaltic pumps
Personalised Consultation
Cutting through the jargon, Atlantic Pumps can get your process-critical slurry pumping system up and running again fast with replacement hire pumps, or help you select the best pump to test onsite by hiring first.
Pump choice is a big decision, and getting the right pump can dramatically improve financial and sustainability outcomes, especially in heavy industrial situations. Atlantic Pumps gives straightforward advice that empowers you to make an informed choice.
Phone or connect with us today to discuss your slurry pump hire or buying options. If we haven’t a pump solution well suited to your situation, we’ll share our market knowledge to point you in a fresh direction.
