Hire vs buy: How Coates helps customers embrace the circular economy

By choosing to rent instead of buy, Robyn Simpson, Coates’ National Manager - Environment & Sustainability, explains how businesses can unlock significant environmental and economic benefits

In a world increasingly focused on sustainability, Coates brings long-standing expertise in the circular economy. Circularity is at the heart of our sustainability framework and our mission is to make it easy for our customers to ‘go circular’ – avoiding the complexities of owning, managing and disposing of assets.

The hire model is inherently circular, ensuring that equipment is shared, maintained, reused and recycled efficiently. This approach helps to reduce waste, maximise asset utilisation and conserve valuable resources, contributing to a more sustainable future.

Benefits of circularity for hire customers

Hiring from Coates makes your job easier and more cost-effective. We handle the behind-the-scenes tasks – maintenance, spares, compliance, storage and transport – while you have access to our extensive national fleet.

Here are some key reasons why hiring rather than buying helps your business unlock the full value of a circular economy:

1. Cost control and financial flexibility

Replacing or buying your own fleet is increasingly capital intensive. Instead of locking up your capital in equipment, consider renting the gear as needed. Equipment rentals are generally tax-deductible* and Coates manages maintenance and other operational requirements.

2. Convenience of on-demand equipment

Hiring gives you access to the right equipment when you need it. Our fleet is regularly serviced, readily available and delivered where you need it, while our national branch network means your local Coates team is always ready to offer advice and support.

3. Expertise across the hire ecosystem

Our team of experts is dedicated to making complex tasks invisible to you, managing everything from asset selection and procurement to Chain of Responsibility (CoR) and transport, field service, inspection, repairs and maintenance, safety and compliance, asset storage, and end-of-life disposal.

4. Innovation and future-proof solutions

We work closely with our global supply chains to customise equipment specifications to meet our customers’ needs, incorporating local requirements and protecting their capital from being invested in assets that may soon become obsolete. Beyond equipment, we offer tailored solutions, telemetry, data-driven insights and ongoing service to help make your construction projects smarter and more efficient.

5. Contribute to your sustainability goals

The shared economy reduces the need for excess plant and equipment by keeping hire fleets operating efficiently and at high utilisation rates. We collaborate with suppliers and manufacturers to drive market demand for new Greener Choices equipment with improved energy efficiency and lower emissions. Through our up-to-date fleet, you can explore the latest technologies risk-free.

Circularity is a key benefit of the hire model – avoiding the complexities of owning, managing and disposing of assets.

Circularity at Coates

Circularity doesn’t start with waste – it starts with smart design, quality procurement and efficient use. At Coates, we integrate circular principles throughout the asset lifecycle.

• Design and procurement: We select high-quality, durable, energy-efficient assets that align with our customers’ needs to ensure they deliver maximum value throughout their hire life. We collaborate with diverse suppliers to ensure they design equipment for safety, for high-retained asset value, with reduced resource inputs, value-added features, repairability and, ultimately, recyclability.

• In-use: We operate our assets in a continual ‘circular use phase’, where equipment is hired, inspected, repaired and made ready for the next hire. This circular model is inherently sustainable and leverages our people’s expertise in hire and equipment solutions to drive high utilisation of our assets

• End-of-life: When an asset is nearing end of life and is no longer suitable for the arduous conditions of the rental industry, we prioritise exploring opportunities to provide it with a second life. This is achieved either by reselling it to other markets, by refurbishment to extend its usability, or exploring ‘re-use and re-purposing’ options. When the asset is no longer functional, we recover and recycle as much material as we can.

Measuring our circular economy contribution

At Coates, we track and measure the tangible outcomes of our efforts. Here’s a snapshot of our contribution to the circular economy in FY24:

• $1.9 billion in available assets

• Monitor and adjust fleet size to achieve high utilisation

• Approximately 110 million days on hire annually

• Over 500,000 maintenance events annually

• 85% of end-of-life assets are on sold or refurbished

• More than 1,000 tonnes of metals recovered for recycling in FY24

Ready to start realising the benefits of the circular economy? Contact Coates today

*This comment is general in nature and should not be considered as tax advice. Please consider discussing with your internal tax team and/or external tax services advisor when considering any tax implications on the same.