How Leasing Access Vehicles Can Improve Street Lighting Projects
Blog-July 22, 2022
The future looks bright for street lighting contractors.
From 5G and the Internet of Things (IoT) to ongoing government funding to tackle street crime¹ and the climate crisis², there are a number of exciting projects on the horizon. The UK government’s latest National Infrastructure and Construction Pipeline promised £650bn for infrastructure schemes over the next decade³.
But with public finances under pressure, many contractors are being forced to find ways to increase efficiency and deliver greater value on projects.
One way of doing this is by rethinking the way they procure key strategic equipment and Vehicle Mounted Access Platforms. And in this article, we explore how embracing a leasing model can empower contractors in the street lighting sector.
The budget problem
Research from the Institute of Civil Engineers (ICE) shows there is a persistent gap between cost estimates and output from infrastructure projects⁴, suggesting that contractors and firms struggle to plan their budgets effectively.
There are a number of reasons why. For example, street lighting projects are very prone to disruption, with weather often slowing work down or making it too dangerous. This can create a cascading effect, leading to delays and excess spending.
However, one of the most challenging parts of the budgeting process is procurement.
The procurement problem
The majority of street lighting projects require assets like Vehicle Mounted Access Platforms, to enable them to work at heights safely. But because few contractors can afford to buy their own fleet outright, they are forced to hire it from a third-party provider.
This tends to lead to rigid contracts that aren’t adaptable to their projects’ workflow, and limits their ability to afford top quality equipment. It makes managing their budget more challenging, as payments are fixed and often don’t fit well within the contractor’s income stream.
But the reality is, this need not be a problem at all. Because there is a third option for street lighting contractors – the vehicle leasing model.
The leasing solution
Leasing Vehicle Mounted Access Platforms enables a level of flexibility that most contractors assume is not available to them.
The model allows them to procure the highest quality vehicles without the prohibitive cost of buying, and update the model when a project is done – without ballooning payments. But it also helps them spread their payments more effectively, helping manage and adapt their budget to their income.
There are also clear tax benefits. Many street lighting contractors even find they can deduct the full lease rental cost from their taxable income – or claim capital allowances on the asset cost. Across an entire fleet and multiple projects, this creates a huge improvement in financial efficiency – one that can either be passed onto the client or kept to increase the contractor’s bottom line.
Working with Access Hire
Access Hire has pioneered this leasing model with our market-leading Vehicle Mounted Access Platforms. We provide 24/7 support, ongoing maintenance and expert product knowledge to every one of our clients. And our vast list of long-term relationships is proof that the model works.
To discover how leasing our vehicles could help you, reach out to us today.