Food Industry Wastewater Treatment Equipment – Lease Or Buy?
Food Industry Wastewater Equipment Needs Change
Unfortunately, it is a sad fact of life that we cannot predict the future. This is often true in the sizing of all industrial equipment including wastewater treatment equipment. There are many instances where wastewater treatment plant is undersized. Even recent installations can suffer from the need for increased throughput or capacity, due to rapid business growth, seasonal increases or processes changes. All are good problems to have unless you are the personnel trying to run the plant beyond its design capacity.
Lease or Buy: Acquiring Wastewater Treatment Plant In The Food Industry?
There are basically two options available to retrofit existing wastewater treatment plant to increase treatment capacity – Buy or lease. Each option has distinct characteristics:
Buying wastewater treatment equipment
- Funding normally requires a company capital expenditure request and forms part of an allocated annual capital budget.
- Your company owns the equipment after purchase
- Your company can maintain the equipment in house or engage a separate service provider
- Your company can purchase spares or chemicals as required from any supplier.
Leasing waste water treatment equipment
- Your company can lease the equipment for a variety of periods dependent on operational needs.
- Funding is normally derived from the maintenance budget rather than the capital budget , for much smaller amounts
- You can trial the suitability of the equipment on a short-term basis.
- There are usually lease to buy agreements similar to hire purchase
- The leasing company is responsible for maintenance and chemicals.
So Buy or Lease Your Wastewater Treatment Equipment?
In today’s operating conditions, it is increasingly difficult to get capital funds for large expenditure. This is especially true for wastewater treatment, which is a non-revenue generating portion of the operation.
Therefore, if capital expenditure is not available to upgrade your plant, it is becoming increasingly common to lease equipment. This includes DAFs and dewatering equipment, the subject of an earlier article in this series. Examples of dewatering equipment are illustrated below. Dewatering needs being a common reason for plant upgrades, due to capacity.
There are many options and companies available, which lease equipment for a variety of periods. Many companies provide packages tailored to suit operational needs or seasonal demand.