Executive Hire News › Archives › January/February 2010 › Crosshire : Ready to rock and roll
Crosshire : Ready to rock and roll
As we enter a new decade, we face a more traditional challenge than the man-made emergency last year. As I write this, we are in the grip of what many would call a traditional winter and, thanks to the diversity of the average hire store inventory, there is positive news for many of us. Our staff have been running up heaters that have not seen much action in years but, due to correct storage, they give few problems. What is different is the willingness (or unwillingness) of clients to commit to large quantities of kit, or the fuel for them. Gone are the days when local factories would pander to union demands to maintain the works temperature on threat of a walk out. Indeed, many of those factories are no longer here at all.
Much of our larger, self-propelled equipment is facing a period of inaction, and the cold weather will surely sound the final death knell for the odd battery or three. During my exhortations to save money last year, Big Fred suggested we could save a few bob in the autumn by not renewing the antifreeze in our water cooled engines, suggesting we no longer get freezing winters! I am glad I pointed out the difference between prudence and brinkmanship, and our antifreeze was purchased as normal.
When the thaw sets in there will be opportunities for pumps, dehumidifiers, wet vacs and other kit, so our industry is off to a reasonable start this year. A most positive sign of new opportunities is that the Executive Hire Show is almost sold out, and the news that SED is cancelled for 2010 makes it definitely the only dedicated event for the tool and equipment hire industry this year. Many of you are going to be shopping for new kit, as the general moratorium on renewals cannot continue any longer. Our suppliers have got the goods and know that they must be competitive.
Realistically, only the fortunate few can finance their capital requirements themselves, and most of us need to borrow in some form. I have spoken to several asset finance people and it appears that there is reluctance in some quarters to fund our industry. Some institutions see no security in the very equipment that makes the best return because of low capital value and relatively short life. One hire company I know needed to finance a large number of low-value tools for an order, but nearly lost out due to bankers’ intransigence.
The financial industry, which carries much responsibility for the economic situation, must get its act together and realise we are a special case. We need finance for a wide variety of kit, much of which cannot offer the traditional security they desire. Their people should turn out for the Show, see how positive we are, and talk to us about getting the finance necessary to drive the hire industry forward as the country emerges from recession.
It won’t be long before the clots in Westminster will face the music in an election. Whilst many of them will survive, they all know they must act to improve infrastructure, not to mention frost-damaged roads, to create new wealth and pay off our appalling national deficit. We will benefit from this, but we need modern equipment with the latest emission and noise controls in place, ready to rock and roll. Some suppliers have recognised the importance of finance and have teamed up with suitable partners to offer in-house packages. Such initiatives are welcome and many of you will be keen to learn more about them at the Show.
We should also remind our industry associations that we need constant representation to authority to show we are a key factor, not a bit player, in driving our country forward throughout this next decade. I would take the opportunity on behalf of many of you to request the HAE to move its AGM back to where it always traditionally was, at our industry’s winter show. Grass roots members would spend an hour at the meeting and a more vibrant and member-focused organisation would emerge. The present AGM, held in May, has little or no attendance from ordinary members, and I hope some of you will voice your views.
Enjoy this year’s Executive Hire Show. It offers an unrivalled opportunity for us all to start the journey out of recession with friends and colleagues alike.
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