Making sure you’ve got the right machine for the job can turn material that would have been sent to landfill into profit. Things like shredders, sifters, and screens all have a place in a modern recycling station. But, with some larger plant costing over £200,000 to buy, could hiring be a better option?
There are a few things to consider when deciding whether to hire or buy. Obviously, you’ll have to think about cost, but there’s also the matter of maintenance and replacing consumable parts. Does your insurance cover your new equipment? Do you need to train an operator? And what if he gets ill? Do you have enough material on a regular basis to warrant such a costly purchase?
To keep things simple, I’m using the Doppstadt AK430 high-speed shredder as an example. This large, yet highly mobile piece of machinery is very popular and capable of shredding wood and green waste to a particle size of around 40mm. With a throughput of up to 80 tons per hour, you can use this versatile machine on its own or as part of a processing line. If you’re into wood or green waste recycling, you could do a lot worse than to get hold of one of these.
HIRING
Some people hate hiring. It never feels like you ever really own the item, and it always feels second hand. But, we’re not talking about TV’s or carpet shampooers here. When it comes to heavy plant, hiring can make perfect sense. Not that it’s all clear cut:
PROS OF HIRING:
• Cheap short term solution
• Comes with its own trained operator
• Set up to your requirements
• All regular maintenance taken care of
CONS OF HIRING:
• You’ll need to stockpile material for processing
• Popular machinery needs booking in advance
• Seasonal jobs affect availability of certain plant
To get some idea of the figures involved, I spoke to Rob Symons of CRJ Services Ltd (all figures are correct at the time of writing).
“It costs about £210,000 to buy something like the AK430, which prices a lot of the smaller waste operators out of the market, so hiring is a very cost effective solution. We charge about £130 per hour to hire them and 60% - 70% of our customers hire for three or four days once a fortnight.”
Rob points out that you will need to supply your own fuel while you’re using the shredder, but you still get a lot for your money.
Interchangeable parts, such as flail tips and sizing baskets, mean that the shredder can be set up to your precise requirements. Great if you are processing something different with each use. Once delivered, the driver will stay with the shredder and be your operator. He will take care of the loading and processing of materials and will carry out daily maintenance. You just need to feed and water him, and pop him back into his little box at the end of the working day.
You will need to stockpile your material for shredding though. This isn’t always convenient in a smaller yard, so bear that in mind. But the main problem with hiring is availability. Some work is quite seasonal and demand, for certain machines, can be very high at particular times of the year. The solution is to plan ahead and book in advance. It shouldn’t be too difficult to work out how much material you can have ready during any given month. Timing and budget are the only things you need to think about.
BUYING
If you don’t like the idea of hiring, then you need to think about buying, or, as Rob calls it, “The Holy Grail.” He’s ever so dramatic but he has a point. Owning large plant outright is something that I think everyone would like if they had the money. And money is going to be the one thing you’ll need plenty of if you want to go down this road. Once again, I’m using the AK430 as the example.
PROS OF BUYING:
• Second hand prices can be quite reasonable
• Always ready for use
• Could be hired out during quiet periods
CONS OF BUYING:
• Brand new will set you back over £200,000
• You’ll need to train your own operators
• Parts need to be replaced on a regular basis
• Could increase your insurance premium or even need separate insurance
• Fuel and oil costs need to be taken into consideration
• Cost of transportation if you do decide to hire it out
The cost of a decent second hand shredder can set you back £100,000. Still expensive I grant you, but half the cost of a new one. Having your own machinery means that there is less need to stockpile material for processing as you’re good to go whenever you’re ready. And if you can blitz your pile quicker than usual, while others are struggling to find a shredder, then there is money to be made. Hiring out your equipment to other yards during their busy periods could allow you to claw back some of your running costs, especially if you already have a tractor unit for transportation, or low loader in the case of other types of machinery.
Rob again, “The AK430 needs to have its flail tips replaced around every 200 hours depending on the material you shred. It costs something like £40 - £70 to replace one unit; with 36 units that’s £2,520 to replace the lot.”
That’s not to mention regular maintenance, fuel, oil, training your operators, insurance or transportation. So, although you can probably make back some of your costs, you’ll still need plenty of cash to start with.
CONCLUSION
The choice will come down to individual requirements and finances. If you run a small to medium yard, and can get your material ready to a fairly regular schedule, then hiring is probably the way to go. It might feel like dead money, but weighed up against the ongoing costs of running your own plant, it might make more sense.
On the other hand, if you have a bigger operation and need machinery to be available at any time, then buying is a better idea. You don’t want to be hanging around waiting for a shredder, or any plant for that matter. The money spent on buying new machinery, and training people to use it safely, will be worth it in the end. And with the option to hire your equipment out during quieter periods, you could have a nice little sideline to help with the financial burden.
