Hireco experts assess the contract hire landscape
Hireco, the contract hire specialist, has provided insight on recent and forthcoming developments in the sector from three of its experts across the business.
Scott McMinigle, Hireco’s head of new fleet, UK (pictured, right), highlighted dramatic movements in the cost of truck, trailer and van procurement faced by the industry throughout 2022, coupled with highly uncertain build lead times.
“2022 presented challenges that I have not seen in almost 35 years in the rental and leasing sector,” Scott told Transport Operator.
“Early in 2023, the increased costs are still there [and] are now potentially focusing operators on the benefits of contract hire, where access to fixed costs including maintenance and tyre wear provision deliver certainty on contractually backed bus-iness.
“Lead times for future orders are also pushed into 2024 for certain manufacturers, mainly truck and van – so those leasing businesses with current delivery and build completion dates are in a strong position to supply where the manufacturers cannot meet the required deadlines.”
Hireco, as a major UK buyer of trailers, is “very well placed” to support existing customers and any new business wins, Scott says.
“Truck and van orders for 2023 also put us in a strong position, where supply will be constrained for sure.”
Jason Chipchase (pictured, right), who recently joined Hireco as UK contracts manager after 17 years at manufacturer Krone, is used to a challenging trailer market.
He believes that the industry is entering a period of cautious consolidation; many are unsure of what the future holds, says Jason, and are keeping capital close. Rental demand is expected to increase throughout the year, as pricing for new equipment remains high and volume remains down on pre-pandemic levels.
Meanwhile Chris Bull, Hireco’s tyre and operations expert (pictured, right), says that the company’s tyre group is continuing to embrace change and forward-plan in terms of technology, adding that it is already ahead of the curve as regards incoming regulations around tyre pressure monitoring systems (TPMS) in 2024.
“We are also extremely conscious of the growing environmental challenges in reducing dependency on raw materials contained in tyres, and are working closer than ever with our supply partners, ensuring we capitalise on husbandry disciplines and full life run out opportunities maximising wear,” said Chris.
“Also, our remould policy continues to evolve and grow with our suppliers and service partners, with new testing planned for this year.”
Scott McMinigle predicts that 2023 will see the further proliferation of smart technology in both the truck and trailer rental and leasing markets. The ability to take proactive action on low tyre pressure and overheating as a result of TPMS can provide substantial safety and cost-saving benefits to operators, he says. Issues such as low tyre pressure causing decreased fuel economy, and potential blowouts that could put both the driver and public at risk as well as causing missed delivery windows, can be mitigated through use of the technology.
Also now offered by many suppliers is electronic brake performance monitoring, which Scott says can offer significant advantages over the standard four brake tests per annum as administered physically at a vendor location.
Increased uptime comes through continuous monitoring of the braking every time the brakes are used. This generates a report to the operator, indicating braking performance, and any underperformances, enabling proactive action to rectify these exceptions.
Tracking of assets also comes as standard, enabling route optimisation for delivery of consignments, fuel savings and location of loads in real time.
Geofencing can be added, meanwhile, providing advance notice at a stipulated mileage out from the delivery point, thereby allowing the receiving site to prepare for the incoming load, increasing efficiencies even further.
“Smart technology is truly becoming the standard requirement for operators; the positives for their business are there for all to see,” Scott added.
“Hireco see this as core to our rental and leasing offers to both existing and future customers, and we will be continually looking to develop our products further.”
