Tag Archives: sustainability

Reducing Emissions in Equipment Procurement

Customers in industries from retail to manufacturing are working to become more sustainable. Complying with their criteria and assisting in meeting sustainability goals can allow your company to become a preferred contractor or service provider. Steps to become the preferred contractor can be related to how you work, how you travel & even how you procure equipment.

When procuring equipment, the three most frequent options are to rent, purchase or long-term lease. Each of these options have many benefits variant on use, price and other factors. Until recently, the rate of carbon emission did not carry much weight in the procurement process, but in an effort to create a more sustainable tomorrow, many companies have shifted their priorities.

Knowing what goes into the procurement process of equipment, carbon emissions may be more or less significant to your company. Continue reading to see what works best for your company in the reduction of carbon emissions.

Purchasing Equipment

Purchasing new or used equipment can be a great option for many companies. When these machines are on a regular maintenance schedule they can run for many years and be a great value. Unfortunately, many companies do not need continuous use of a particular machine, and it ends up sitting idle. Equipment that is left idle has a negative impact when it comes to carbon emissions.

The idle equipment often has a shorter life and is not so well maintained as frequently used equipment. Additionally, the transportation of machines to and from jobsites contributes to emissions. Transportation emissions comprise 28% of the global emissions total.

Long-term Lease

Next time you procure equipment, you may consider a long-term lease. This option is great in the material handling industry. Companies that need new order picking machines are a great example. To maximize productivity, many companies want the best forklift on the market. Maintaining these machines will keep them at peak performance for several years.

These machines are operated frequently, but seeing that they are regularly replaced, maintenance is not always the highest priority, so purchasing may not be the best option. In contrast, when a long-term lease is complete, the machine can be sold and continue to operate for many years. However, if the equipment were purchased and sold two years later, more machines would continually need produced. Less machine production reduces carbon emissions, while your business still operates smoothly.

Renting Equipment

Having a rental company on your side assures the right-sized machine is used on the job. (Just because a hole needs dug on two sites, does not mean it needs the same machine.) The utilization rate and frequent maintenance done on rental machines increases fuel efficiency per hour of use in comparison to idle purchased machines, thus reducing carbon emissions.

To reduce emissions further, rental equipment travels shorter distances. With the high density of rental branches, you can assure a location is in proximity to any jobsite. When equipment is traveling, there are also multiple machines per trip and loads do not often come back empty. This combined with truck size and load optimization, significantly reduces emissions from transportation. For the same reason, rental can also contribute to heightened emissions. If a company is frequently renting the same machine for their jobsite, trucks are being dispatched without cause. In this instance it is often a better decision to purchase or lease the equipment.

In Conclusion

Your procurement process is important, and so are your clients. If they are interested in contractors reducing carbon emissions for the greater good of the company, you may see a need to shift your views on procurement. Purchasing, leasing & renting equipment all have their benefits and in modern sourcing standards carbon emissions should be factored in.

If you would like to reduce your carbon footprint even further, changes have been made in recent years to produce equipment with little to no emissions. You can most often find this feature in electric equipment such as scissor lifts and forklifts; many high capacity forklifts also have electric options. Electric machines are not the only equipment shifting to lower emissions, in an effort to achieve higher fuel economy many new fuel powered machines are more sustainable than their predecessors.

Next time your purchase, lease or rent, ask your salesperson how they can assist in lowering your rate of carbon emissions.