According to a survey by Future Market Insights, the global scissor lift market is expected to grow at a cumulative annual growth rate (CAGR) of 3.5% between 2021 and 2031. This statistic demonstrates the dynamic nature of the scissor lift market. As one of the most popular aerial work platforms used for commercial and residential projects in the UK, the demand for scissor lift causes periodic changes in price and other market factors.
Scissor lift hire plays a crucial role in the efficiency and cost-effectiveness of projects across the construction industry. Consequently, businesses have to reconsider their approach to scissor lift hire in light of the current realities. This article takes an in-depth look at how scissor lift hire prices are changing in the UK market and how contractors and construction companies can leverage this to gain a competitive edge.
Recent Pricing Trends
In the past few years, there have been major fluctuations in the cost of renting construction equipment in the UK market. This applies not just to scissor lifts but to other equipment too. Companies looking to optimise their operational costs must pay attention to these changes.
Over the past few years, rental rates for construction and maintenance equipment have increased across the United Kingdom. This can be partly attributed to the general inflation impacting various industries (including the construction industry) as well as rising maintenance and repair costs, among other factors.
It is worth noting that the rising price trend affects both the purchase and rental costs of scissor lifts. This means companies still get to save significantly when they opt for scissor lift hire despite the obvious hike in prices.
Factors Driving Cost Fluctuations
As mentioned earlier, scissor lift hire prices have been fluctuating significantly in the UK market. These fluctuations are driven by several factors. As a business considering getting this equipment for your project, it is important to understand the variables, as it will help you make informed decisions when entering into a rental agreement with an equipment hire company.
The construction industry in the UK has experienced significant activities in recent years. This has caused an increase in demand for construction equipment, including powered access platform hire. With increased demands comes a resultant hike in rental prices caused by limited availability of equipment. To navigate this, companies looking to get scissor lifts hired for their project have to do so in time. With higher demands in the market, trying to get a scissor lift on short notice can lead to higher costs, which is bad for your project from a budgetary point of view.
Advancements in scissor lift technology
Believe it or not, one of the factors contributing to the higher hire cost is the general advancement in scissor lift technology. In recent years, manufacturing companies have been producing more sophisticated equipment with improved safety features, eco-friendly designs, and so on. This contributes to a higher cost from the manufacturers, which is passed on to customers by the rental companies. To stay competitive, businesses renting this equipment also have to adapt to these changing pricing dynamics and incorporate them into their budgeting considerations from the onset.
Fuel and Energy Prices
Another factor that has been driving costs higher in recent years is the cost of fuel and energy to power this equipment. This is particularly true for gasoline and diesel-powered units. Fluctuations in fuel prices may lead to adjustments in hire costs to account for these operational expenses. To adapt, construction companies have been opting for more efficient alternatives, such as electric-powered scissor lifts, since they tend to be less costly.
Economic and Regulatory Change
Changes in the economic and regulatory landscape have also played a significant role in shaping prices in the equipment hire market. Perhaps the most significant change in recent years has been the establishment of stricter emission standards as part of the climate change commitments of many governments and organisations. This has necessitated the production of more environmentally friendly equipment, including a scissor lift. Although this trend benefits the environment in the long run, it also contributes to higher equipment costs and influences rental prices.
Actionable Advice for Businesses
So what can your business do in light of fluctuations in the rental price of scissor lifts and other construction equipment? Here are a few tips you might find helpful.
Thoroughly Review Contracts
Before signing rental agreements, make sure you review the terms thoroughly. Compare the quotes from different rental companies and go for the company with the most favourable terms. This will help you pick the best terms and most competitive rates. Paying attention to the contract also allows you to identify opportunities for negotiations, which can drive costs down for you.
Explore Long-Term Agreements
When you can, it’s better to negotiate for longer rental terms with the equipment rental companies. Most companies will offer you a discount if you agree to get the scissor lift for a long time, saving you costs in the long run. Entering into long-term agreements also insulates you from fluctuations in pricing since the cost is locked in from the onset.
Negotiate Based on Usage
An alternative to long-term agreements is to negotiate pricing based on how you intend to use the unit. This means you have to carefully plan your project timeline and needs and identify usage patterns that can result in favourable pricing for your project. For instance, planning your project for off-peak periods might help you save costs since demand (and consequently price) is lower.
Stay Informed About Market Trends
Since rental costs can be affected by economic and regulatory factors, paying attention to trends can help you anticipate potential cost changes so you can plan your project and execute it accordingly.
Although price fluctuations in the scissor lift hire market might seem like a disadvantage, they can also give you a competitive edge if you know how to leverage it. Businesses that master strategic equipment procurement often save costs and gain an edge over competitors. Working with a reliable equipment rental company like easyToolhire can also help you navigate costs more effectively. Contact us to discuss the details of your project and how we can help you with cost-effective equipment rentals.