To Hire or not to Hire?
When Air Compressor Hire Might be the Right Solution
The pandemic may well have influenced or impacted your capital expenditure plans this past year. Whether your business has seen a sudden surge in production or you now find yourself considering putting investment in new capital equipment on hold in the current economic climate, one thing will undoubtedly have not changed – that being your requirement for a reliable supply of high quality compressed air.
As the recognised fourth utility to UK manufacturing and industry, a reliable source of quality compressed air is most likely vital to the continued productivity and operational effectiveness of your business. If that is the case, how can you achieve the same compressed air system upgrades your business requires without the initial capital expenditure outlay?
Thankfully, there are a number of options you can take advantage of to ensure that your compressed air supply requirements are met. In this blog post we look at the benefits of air compressor hire and when this might be the right solution, as well as highlighting a new ‘130% super-deduction tax break’ recently announced by the Chancellor and available when investing in capital equipment such as compressors and compressed air systems.
When would air compressor hire be the right option?
There are many good reasons and advantages as to why you might consider hiring an air compressor through Kerr, these may include:
- Speed – when you need a short-term or temporary solution: whether you need additional compressed air to meet an unexpected surge in production without additional investment cost, or your production has more permanently increased and we are working with you to design a new compressed air system – hiring an air compressor through Kerr provides a speedy short-term or temporary solution to bridge the gap.
- Flexibility: here again, Kerr compressor hire solutions offer great flexibility with short, medium or long term hire options, emergency response and flexible bridging solutions available. All of our hire solutions are supported by experienced, factory trained personnel and quality equipment from stock.
- Minimise downtime: let us say your existing compressor fails and you do not already have a back-up. Depending on the diagnosis of the fault or the issue, hiring a compressor may present a quick fix replacement that would cause minimal disruption and downtime to your operations / productivity while your existing air compressor is repaired or replaced.
- Cost savings: when you only need additional compressed air for a set period of time, it is very likely that there will be cost savings to hiring rather than buying an air compressor to meet these requirements.
- Inclusions: when you choose to hire an air compressor with Kerr, we include all of the maintenance and service requirements within our hire agreement providing complete peace of mind and transparency of costs for the term of the agreement. This means that there are no hidden costs and no need to spend time getting service quotes or to worry about when service work is due – everything is taken care of.
When investing is the right choice…
There will of course be numerous situations where investing in new compressed air equipment makes sense. Some examples may be when you are upgrading an ageing compressed air system, to meeting the compressed air requirements of expanding or building a new production area.
If investing is the right option for you then our experienced, expert team is in the position to provide you with considered advice and helpful information regarding this and it is worth knowing that the Government recently introduced a major new financial initiative to support UK businesses. Announced in the Budget 2021 and designed to encourage UK businesses to invest in the latest productivity-enhancing capital equipment, a new super-deduction tax break is set to act as a major investment catalyst for the next two years on compressed air systems.
From 1 April 2021 until 31 March 2023*, companies investing in qualifying new plant and machinery assets will be able to claim:
- a 130% super-deduction capital allowance on qualifying plant and machinery investments
- a 50% first-year allowance for qualifying special rate assets
This super-deduction will allow businesses to cut their tax bill by up to 25p for every £1 they invest and provides companies with a strong incentive to make additional investments or to bring forward planned investments in capital equipment such as compressors and compressed air systems.
In our references below you will find links where you can access more information about this record-breaking opportunity that equates to a significant cash windfall for businesses and will help to bolster cash flow at a critical time.
Whether you are thinking about hiring or investing, as a specialist compressed air provider we have the professional experience, expertise and knowledge to assist you in your decision-making process, helping you to consider and weigh up all of your options.
HOW CAN WE HELP?
Compressed air specialists in Scotland for over 40 years and a full BCAS member since 1998, Kerr is proud of its reputation as a respected and recommended supplier of compressed air products, solutions and services at both a national and regional level throughout Scottish businesses and industry.
Our Air Compressor Hire Solutions, provide an affordable, reliable and flexible compressed air equipment rental service throughout Scotland and at competitive rates. From individual air compressors, complete compressed air packages, portable, site and compact compressors, high pressure piston compressors to air treatment products for dry, clean compressed air; we have a cost effective Hire Solution for every requirement.
*Information correct at time of publishing (Tuesday 30th March 2021). Please see references and links below to check the current status.
- UK.GOV Website & Guidance
- HM Treasury Factsheet – Budget 2021 – Super-deduction
- Kerr-BCAS Factsheet – Super-deduction guidance
Please Note: This Kerr ‘Know How’ blog post does not provide any investment, financial, or tax advice. Businesses should always consult with their own legal and financial advisors, accountant or tax experts.
Source & Credit: Many thanks to our colleagues at KAESER – Australia for kindly allowing Kerr to repurpose and share sections of their ‘KAESER Know How Blog’.