Finance and growth
Adding tool hire, welfare and site equipment
Should a plant hire firm add tools, welfare units, power or site equipment? Demand, margins, inspection rules and how to test a new line before investing.
Key takeaways
- New lines work best when they go out on the same delivery as your plant.
- Each line has its own inspection rules: PAT testing for tools, gas safety for some welfare units, LOLER for lifting kit.
- Test demand with a few units or cross-hire before buying in volume.
- Every line must make money on its own, including handling and delivery.
Why add a new line
- Raise the value of each delivery.
- Become the one supplier a site calls for everything.
- Use spare yard, transport and admin capacity.
- Smooth seasonal demand.
Options compared
| Line | Examples | Pros | Watch for |
|---|---|---|---|
| Small tools | Plate compactors, saws, breakers, drills | Cheap; high demand | Stock control, PAT testing, theft |
| Welfare | Welfare units, toilets, drying rooms | Long hires; steady | Servicing, waste, transport |
| Power and lighting | Generators, lighting towers | Long hires | Fuel, theft, maintenance |
| Site equipment | Fencing, barriers, bowsers, pumps | Goes with plant | Storage space, loss |
| Access | Scissor lifts, booms | Strong demand | LOLER, operator training (IPAF) |
Inspection and compliance
- Electrical tools: inspection and testing between hires (often called PAT testing).
- Lifting and access equipment: LOLER thorough examinations. See PUWER and LOLER.
- Welfare units with gas appliances: gas safety checks by a qualified engineer.
- Fuel bowsers: bunding and storage rules. See environmental compliance.
- Waste from toilets and welfare: licensed waste handling.
Testing demand
- 01
Ask existing customers
What else do they hire, and from whom?
- 02
Cross-hire first
Supply it from another firm for a few months. See cross-hiring.
- 03
Buy a small batch
Two or three units, not twenty.
- 04
Measure utilisation
Same break-even test as plant.
- 05
Expand or stop
Based on the numbers, not enthusiasm.
Making the decision
A new line is worth it if it earns its own margin after handling, inspection, delivery and loss, and doesn't distract from the plant fleet that pays the bills. See plant vs tool hire for how the businesses differ.
FAQs
Common questions
Should a plant hire company add tool hire?
Is welfare unit hire profitable?
What inspections do hire tools need?
Keep going
Related guides
Plant hire vs tool hire vs equipment rental
How plant, tool and equipment hire differ, and which to start.
Read guide →
Cross-hiring
Hire in plant to fill gaps without eating your margin.
Read guide →
Utilisation and break-even for hire equipment
Calculate break-even utilisation for each machine.
Read guide →
Expanding your plant hire fleet
When to add machines and how to fund growth.
Read guide →
This guide is general information for people setting up a plant hire business in the UK. It is not legal, tax, insurance or financial advice. Rules and thresholds change, so check current guidance on GOV.UK and take advice from an accountant, solicitor or broker before acting.