Why Forklift Trucks Are Essential for Many Businesses
Forklift trucks play a crucial role in a wide range of industries across the UK, from warehousing and manufacturing to construction and logistics. They improve efficiency by making it easier to move heavy goods, load and unload vehicles, and manage storage spaces. For any business that handles materials or products in bulk, having reliable access to a forklift truck can be vital. However, one of the biggest decisions business owners face is whether to hire or buy their forklift truck. Both options have advantages and disadvantages, and the best choice will depend on the specific needs and circumstances of the business.
The Advantages of Hiring a Forklift Truck
Hiring a forklift truck offers flexibility, which can be particularly useful for businesses with fluctuating workloads. Seasonal companies, for example, may only need additional equipment during busy periods. Hiring allows them to access the forklifts they need without committing to a long-term investment. It also gives businesses the opportunity to try out different models and configurations before making a purchase decision.
Another benefit of hiring is that maintenance and servicing are typically included in the agreement. This means the business does not have to worry about repair costs or downtime due to breakdowns. For smaller companies without an in-house maintenance team, this can be a significant advantage. Hiring can also be more cost-effective in the short term, as there is no large upfront expense.
The Advantages of Buying a Forklift Truck
Buying a forklift truck can be a better long-term investment for businesses that use the equipment regularly. Once purchased, the forklift becomes a company asset, and there are no ongoing hire fees to pay. For companies with consistent workloads, owning a forklift can be more cost-effective over time.
Ownership also allows businesses to customise the forklift to suit their specific needs. Whether it involves adding attachments or branding the truck with company colours, buying gives complete control over the equipment. Businesses can also decide when and how often the forklift is serviced, rather than relying on hire company schedules.
Cost Considerations
Cost is often the deciding factor when choosing between hiring and buying. Hiring can seem more affordable initially, especially for companies that only need the forklift for a short period. However, for long-term use, hire fees can add up and eventually exceed the cost of buying outright.
Buying involves a higher upfront cost, but once the forklift is paid for, the only ongoing expenses are maintenance and running costs. Companies can also benefit from potential tax advantages, as equipment purchases may qualify for capital allowances. Ultimately, businesses need to calculate how often the forklift will be used and for how long to determine which option is most cost-effective.
Flexibility and Business Growth
Hiring provides greater flexibility, particularly for businesses that are growing or changing. If a company’s requirements change, it is easy to switch to a different model by updating the hire agreement. This is helpful for businesses that may need larger or more specialised forklifts as they expand.
Buying is less flexible, as selling or upgrading a forklift involves additional costs and effort. However, for stable businesses with predictable workloads, owning a forklift provides certainty and eliminates reliance on third-party hire companies.
Maintenance and Reliability
When hiring a forklift, maintenance and servicing are usually included in the contract. This ensures that the equipment remains in good working order without additional expenses for the business. If the forklift breaks down, the hire company will typically provide a replacement quickly, minimising downtime.
Buying a forklift means taking on responsibility for its upkeep. While this gives businesses control over when and how maintenance is carried out, it also means budgeting for repairs and servicing. Businesses with the resources to manage their own maintenance may find this worthwhile, while others may prefer the convenience of a hire agreement.
Depreciation and Resale Value
Forklift trucks, like any equipment, depreciate over time. Businesses that buy will need to consider the eventual resale value if they plan to replace or upgrade in the future. Depending on how well the forklift is maintained, it may still have value after several years of use, helping to offset the original cost.
Hiring avoids the issue of depreciation entirely, as the equipment is returned at the end of the contract. This can be appealing for businesses that want to keep their balance sheets lean without tying up money in depreciating assets.
Which Option Is Right for Your Business?
The decision to hire or buy a forklift truck depends largely on how frequently the equipment will be used, the available budget, and the business’s future plans. Companies with short-term or irregular needs may find hiring to be the most practical and cost-effective solution. It provides flexibility, avoids upfront costs, and includes maintenance and servicing.
For businesses with ongoing, heavy use, buying a forklift is often the better investment. Although it requires more money upfront, ownership can lead to significant savings over time and gives the business full control over the equipment. It also provides the opportunity to customise the forklift to suit specific operational needs.
Making an Informed Decision
Before deciding, businesses should carefully evaluate their operational requirements, financial situation, and growth plans. Consulting with forklift suppliers can also provide valuable insights, as they can advise on the most suitable models and configurations for different industries. Whether hiring or buying, choosing the right forklift truck is essential for improving efficiency, productivity, and workplace safety.
