Construction projects are capital-intensive, and one of the biggest financial decisions contractors face is whether to buy or hire machinery. With tight margins, fluctuating workloads, and rising costs, choosing the right approach can significantly impact your bottom line. The big question is: should you buy or hire machinery to save money and maximise efficiency?
Purchasing machinery comes with upfront and ongoing costs. First, there's the large capital outlay, which can strain cash flow or require long-term financing with considerable interest payments. Then comes depreciation—most plant equipment loses value rapidly in the first few years. Additionally, owners must budget for ongoing expenses like insurance, regular maintenance, and secure storage.
While ownership may offer long-term value and complete control over usage, it also locks up capital that could be used more flexibly elsewhere in the business.
Hiring equipment has become increasingly popular across the UK, thanks to flexible contracts and lower initial costs. With no need to worry about servicing, repairs, or resale, hiring can be ideal for short to mid-term projects. The cost of hiring construction equipment varies by location, duration, and type of equipment, but it’s usually easier to budget for because it's predictable and all-inclusive.
However, hidden fees can emerge, including delivery and collection charges, insurance premiums, and potential costs for damage or late returns. It's crucial to read terms carefully and use trusted hire platforms like SharePlant that promote transparent pricing.
A plant hire cost calculator can help compare the cost of hiring vs buying over time. These tools take into account daily or weekly hire rates, maintenance costs, depreciation, and project duration. For instance, hiring a 5-ton excavator might cost £250 per week, which sounds expensive over time but if your project lasts just 3 months, that’s £3,000, far less than purchasing a used machine for £30,000 plus servicing.
Using calculators can guide smarter financial decisions and justify the investment either way, especially when dealing with tight or variable schedules.
There is no one-size-fits-all answer. Contractors should consider:
Review your pipeline of upcoming projects to identify equipment gaps and how often they'll arise.
SharePlant is a UK-based construction and engineering rental marketplace that allows contractors to rent machines quickly, safely, and locally. The platform connects vetted owners with hirers, reducing delays and helping both parties maximise value. Benefits include:
SharePlant gives you control and visibility over your equipment hire while saving time and money.
Hiring reduces the number of underutilised machines in the industry, contributing to lower emissions and more sustainable practices. Hiring also means reduced manufacturing demands, fewer idle assets, and smarter resource use, which are key goals in today's climate-aware construction environment.
So, should I buy or hire machinery? The answer depends on your usage patterns, budget, and operational flexibility. Use tools like a plant hire cost calculator to run the numbers and consider the cost of hiring equipment through trusted platforms like SharePlant Rentals.
Hiring works well for most short to mid-term projects and gives access to top-tier equipment without the headache of ownership. For those managing a long pipeline of consistent work, buying could be the smarter investment. Whatever your strategy, making informed decisions is key to saving money and delivering projects on time and on budget.
Visit https://shareplant.com to explore flexible, affordable plant hire options for your next job.
