A numbers game

14 January 2022

A recent conversation I had with a busy multi-depot independent tool hirer revolved largely around numbers: rising inflation levels, higher equipment costs and the need to recruit staff as a result of ongoing demand. And another figure mentioned was hire rates. 

“We have two workshop vacancies that have been created through retirement and business expansion," the hirer said. "Traditionally it’s always been challenging to attract good people because of the hands-on, never-say-no nature of the hire industry. And post-Covid salary expectations are now higher. 

“We’ve just given our existing staff a pay rise, partly to recognise their tremendous efforts during the pandemic, and we’re having to juggle the gap between that and the National Living Wage for new entrants. 

“Some time ago we used to offer overtime and bonuses, but the Government doesn’t take that into consideration, focusing instead of hourly rates. So we eventually chose to raise salaries overall. However, to employ someone now on our 42.5-hour week under the new National Living Wage costs nearly £20,000 from April. And on top of that we have National Insurance increases and auto-enrolment pension payments. 

“And of course, the hire industry is labour intensive. We’re not selling products or shifting boxes. We have to have drivers, workshop technicians, hire controllers – many positions to fill. Everything is driven by service. 

“As a result of these rising figures, we decided to put our hire rates up for 2022, by 5% across the board. We did it quietly without making major announcements and I am pleased to say that not one customer has reacted negatively. 

“We offer good equipment at a fair price and we have to cover our costs. I hope other hire companies do, too.” 

All organisations will have to crunch through their own numbers and make their decisions accordingly.

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