Hire vs. Purchase – which is more sustainable?

The ERA says "rental is an inherently sustainable model”.

Have you ever wondered whether it is more sustainable to hire or purchase a piece of equipment? The European Rental Association (ERA) recognises rental as an “inherently sustainable model”. The ERA continues to explain that “rental companies operate under the circular economy principle, and by doing so, minimise the negative environmental impact of equipment”.

What is the Circular Economy Principle?

The circular economy principle is a model of production and consumption, which involves renting, leasing, reusing, repairing, refurbishing and recycling equipment for as long as possible. This process reduces waste, reduces material consumption and extends the life cycle of a product.

5 Reasons to Hire rather than Purchase:

1. Shared Use

In the construction industry, equipment tends to have several periods of downtime during different stages of the project. If the unit is hired, it could be returned during the downtime for another company to use. Shared use or hire of a single piece of equipment will generate less carbon emissions during its life cycle, when compared to emissions generated from multiple purchased products.

2. Repair vs. Replace

As part of a hire company's business model, they will first try to repair, rather than replace their machinery. Maintenance teams are trained to focus on spare parts management and ask for detailed information on product repair from the equipment manufacturer. This not only extends the life cycle of the product, but also ensures that it is always operating at optimum efficiency.

3. Expert Support

Further to the above, constant engagement with the equipment at component level will provide the maintenance team with a deep technical understanding, which in turn will enable them to provide excellent technical support to their customers. Technical teams will also be able to provide advice on how to optimise the performance of the equipment whilst on site.

4. Reusability

When a piece of kit eventually reaches the end of its life, hire companies will salvage component parts for use on other fleet items. Re-using and re-purposing materials is central to a hire company’s sustainability model. 'Reusing' is also a key step in the Environmental Waste Hierarchy; Prevent, Reduce, Reuse, Recycle, Dispose.

5. Recycling

End-of-life management is very important. Hire companies will either have an agreement in place with the manufacturer to collect, reuse or recycling end-of-life equipment, or they will take responsibility for recycling or disposing of the equipment in an environmentally sustainable way.

How do I calculate my CO2e Saving?

You can calculate the environmental impact of hiring a piece of construction equipment vs. buying a piece of equipment, by using the ERA Equipment CO₂ Calculator. This calculator can be used to estimate the carbon footprint of construction equipment over its entire life cycle, or it can be used to determine the carbon footprint of a piece of machinery on a given jobsite over a single period. Visit the ERA’s website to learn more.

More Information

To learn more about RVT’s sustainability model, please click here.

RVT Group Hire vs Purchase PDF Download