Capital Equipment News June 2017

uying or renting are the two ways of

satisfying a company’s equipment

needs. Compressors are used in

a wide range of industrial fields

ranging from mining, manufacturing,

petrochemical, chemical, construction,

through to automotive, drilling, electronics,

oil & gas and power plants, to mention a

few. The question that often arises among

end users is: should I buy an air compressor

or should I rent one? There are pros and cons

to each side.

Henry Fourie, Business Development

Manager at Rand-Air, claimed to be the

largest fleet owner of compressors and

generators for rental in South Africa, with

units ranging from 190 cfm to 1 500 cfm,

and with pressures of up to 25 bar, believes

that the most important consideration for

companies that need this equipment is what

works for them from a financial standpoint.

“With the unsteadiness of the market,

affected by factors that fall outside the

control of industry participants, businesses

need flexible solutions,” says Fourie.

Ashik Singh, National Sales Manager –

Rental at CompAir South Africa, reiterates

that rental is a perfect fit for short-term jobs

when companies want to meet unplanned or

infrequent compressor needs. He is of the

Rand-Air

• Has an extensive fleet of over 700 Atlas Copco

compressors and generators

• Fleet is spread across 10 branches and agencies

in South Africa

• Compressor units range from 190 to 1 500 cfm

• Pressures of up to 25 bar

• Offers oil-free compressors with pressures of up

to 24 bar

Goscor Compressed Air Systems

• Distributes Sullair and Ozen compressed air

• Sullair range from 185 to 1 150 cfm

• Pressure supply from 7 to 35 bar

• Ozen range up to 640 hp

Doosan Portable Power

• Low pressure units from 185 to 1 000 cfm

• High pressure units from 760 up to 1 070 cfm

• Oil free units of 1 500 cfm

CompAir SA (Rental)

• Rental fleet of about 150 units

• Offered across four branches

• Electrical units from 20 to 4 500 cfm

• Diesel units from 190 to 1 800 cfm

• Oil free air from 200 to 1 800 cfm (diesel or

electric)

QUICK FACTS

view that if companies need a compressor

regularly enough over its estimated use-

ful life, the case to purchase it outright is

probably strong. This view is shared by Gary

Neave, Business Unit Manager at Doosan

Portable Power, who believes that rental fits

the bill for short-term contracts of a year or

less, while anything beyond that may make a

strong case for buying.

Duane Kruger, General Manager of Goscor

Compressed Air Systems, part of the Goscor

Group of Companies and the authorised

distributor of Sullair and Ozen compressors

in southern Africa, believes that the decision

to rent or to buy normally comes down to

the company’s financial status. He believes

that larger, blue-chip companies with the

necessary financial muscle may afford to

purchase their own compressors, while small

to medium entities with little or no capital

outlay could cost effectively service their

compressor needs through rental. Kruger

argues that the allure of ownership has to

do with how a business manages its finances

and notes that buying a compressor is a

result of a better balance sheet.

The rental case

At the peak of an unsteady market with

few and far between contracts, Fourie

believes that hiring a compressor enables

organisations to weather the ups and

downs of the economy. “If they rent and

the market deteriorates, they are in a

position to return the equipment. On the

other end of the scale, if they win projects

or take on new work, they can still hire

more equipment to meet the immediate

needs, without taking on greater risk,”

argues Fourie.

According to Fourie, the biggest

advantage of renting is the convenience.

“Another consideration is the capital outlay

required to purchase equipment such as a

compressor. Investing in equipment is a

costly exercise and most businesses don’t

realise that this is a long-term investment as

it requires services, maintenance, insurance,

and is impacted by fluctuating interest rates,”

says Fourie, adding that owning equipment

also means that it now forms part of the

Rand-Air believes hiring a compressor

enables organisations to weather the ups

and downs of the economy.

CompAir reiterates

that rental is a perfect

fit for short-term jobs

when companies want

to meet unplanned or

infrequent compressor

needs.

CAPITAL EQUIPMENT NEWS

JUNE 2017