7. Machinery AND Tools

In Europe, over 17,000 equipment rental companies provide a wide range of construction and industrial equipment for customers, primarily in Europe and North America (European Rental Association, 2021). In recent years, there has been a growing focus on the fact that equipment rental can offer both financial flexibility and a circular model, saving resources and CO₂e. For instance, The European Rental Association (ERA) has developed an Equipment CO₂ Calculator that can easily be used through their website to evaluate a single ownership period of one piece of equipment and, thus, to determine the climate impact of entire fleets of equipment or the total carbon footprint of all machines on a given job site (European Rental Association, n.d.).

Construction accounts for a considerable proportion of economic activity in the Nordic region (Sepponen et al., 2023), requiring machinery and tools. Repairs are often the most significant component of machinery costs, constituting around 37% of machine costs over its service life. This means that between 15% and 20% of the total equipment budget usually consists of labour for repair and repair part costs (Yip et al., 2014). A circular economy often accentuates paths for resource-efficient growth and functions as a driver for business development in the Nordic region. Political trends among policymakers, new rules and regulations can most likely not stand alone, as there is a need for substantial economic incentives for construction companies to change existing business approaches, such as financial savings of maintenance and repair (Høibye & Sand, 2018).

The construction industry dominates equipment rental, and in the Nordic rental sector, the share of rental revenues coming from the construction sector is approximately 70 % (IHS Markit & European Rentail Association, 2022). The equipment rental industry in the Nordic countries experienced growth in recent years up until the COVID-19 pandemic. The industry was growing more quickly than GDP and the construction industry, implying expansion of the rental penetration (IHS Markit & European Rental Association, 2020). Operators in this area expect an increasing proportion of their business volume to derive from services rather than goods (Wilkens, 2020). The outbreak of the Covid pandemic had a relatively mild impact on rental activities in the Nordic countries compared to other parts of Europe since almost no construction sites were shut down. Even though the markets in the Nordic countries are estimated to experience some long-term effects of the COVID-19 pandemic, the rental market for equipment and machinery is expected to continue to grow (IHS Markit & European Rentail Association, 2022).

Further cost or material use reductions can be found in proper maintenance since fuel efficiency with lower emissions in operations can be provided by keeping equipment in good condition (AE Faulks Ltd, 2021). The repair and maintenance cost creates good prerequisites for product-oriented and use-oriented PSS solutions, offering both convenience and repair cost reductions through ownership models. Another benefit of PSS solutions for machinery and tools is enabling access to greener, more expensive options by making the products more economically attractive and affordable compared to purchasing the products. PSS solutions also lower the risks often associated with new technology, supporting the implementation of best available technology (Volvo, 2022).

Heavy machinery has the most significant environmental impact during the use phase and is significantly affected by the level of maintenance and repair (Ebrahimi et al., 2020). Meanwhile, handheld tools have a minimal environmental impact in the use phase but are often underutilised (Skjelvik et al., 2017a). This suggests a potential for PSS models on handheld tools aiming to increase utilisation of handheld tools to contribute to both resource-wise and financial savings. The following section will provide insights into existing PSS solutions in the Nordics within the product types: heavy machinery (incl. cranes), processing equipment, chemicals and handheld tools.

Growth in the construction industry of the Nordics is supported by both the private and public sectors, with the development of infrastructure, sustainable framework improvements, and residential construction, which is currently the largest market (Mordor Intelligence, 2021). Construction equipment rental is one of the most significant service sectors on construction sites in the Nordics, with the Nordic construction rental market worth more than 3.6 billion euros. High utilisation of construction capacity and labour shortage have been driving the growth in the sector. An indicator of the attractiveness of the industry is the recent acquisitions of Finnish international rental companies Ramirent and Cramo by French Loxam and Belgian Boels Rental, respectively (Pajakkala et al., 2019).

Most PSS providers target the B2B market, but some PSS models are present for heavy machinery in the B2C and B2G markets. Among the identified PSS solutions for heavy machinery, the most common is use-oriented models, predominantly rental solutions, which allow the construction industry to keep costs down on acquisition, maintenance and repair. However, product-oriented models are also standard, e.g. pure transitional services and extended warranty and preventative maintenance services. These types of PSS models can improve utilisation and prolong the lifespan of machinery, thereby reducing material inputs by decreasing production.

Processing equipment is used in many sectors, from sewage treatment to food production. Depending on the function of the processing equipment, PSS can offer different solutions. Common for processing equipment is that significant investments are often needed. PSS leasing solutions provide a financing mechanism and specialised services that can be beneficial across sectors due to high acquisition costs (Klychova et al., 2020). Multiple benefits can be associated with PSS solutions for processing equipment since the manufacturers often have the best know-how on maintenance and repair, enabling reduced production of new equipment while creating continuous revenue for the PSS providers. Processing equipment is used in many sectors, from sewage treatment to food production. Depending on the function of the processing equipment, PSS can offer different solutions. Common for processing equipment is that significant investments are often needed. PSS leasing solutions provide a financing mechanism and specialised services that can be beneficial across sectors due to high acquisition costs (Klychova et al., 2020). Multiple benefits can be associated with PSS solutions for processing equipment since the manufacturers often have the best know-how on maintenance and repair, enabling reduced production of new equipment while creating continuous revenue for the PSS providers.

Most identified PSS providers primarily offer processing equipment sales, with the secondary option of renting or leasing solutions to broaden their market potential by splitting up the customers' acquisition costs through leasing agreements. On this basis, the most common PSS models offered in the Nordics are product-oriented and use-oriented models. Depending on the type of processing equipment, the predominant markets are B2B and B2G. Common features among the providers of PSS solutions for processing equipment are that they are manufacturing the product themselves or are in close collaboration with the product manufacturers.

While PSS solutions offer more intensive and efficient utilisation of processing equipment, the economic mechanisms also provide greater accessibility. This could increase the use of processing equipment and could lead to higher emissions from the production- and use-phase, depending on the type of equipment, as many types of processing equipment have high energy consumption during their use-phase. Some identified PSS solutions have done extensive work to reduce energy consumption, while others have not. This plays a major role in assessing the environmental impact of PSS solutions.

It could be argued that some types of processing equipment can contribute to reductions of greenhouse gasses, such as in the case of sludge processing equipment, where greenhouse gasses are collected and utilised for biogas facilities. Further, some of the identified cases provide different waste treatment solutions, e.g. water purification of wastewater, targeting the B2G market. This does not, however, apply to all types of processing equipment.

Through the pilot program, one PSS provider of a processing equipment leasing solution participated: Hjortkær Maskinfabrik, located in Esbjerg, Denmark. The central focus of the pilot projects was assessing regulatory, cultural, economic and technical barriers to the uptake of leasing solutions in public procurement processes through interviews with organisations working with public procurement, experts in the public procurement field, and employees responsible for procurement at municipal companies handling and treating wastewater and sludge.

Only a few renting or leasing solutions are used within the municipal sewage and sludge sector. It is considered a norm to buy equipment rather than to rent or lease it. Half of the interviewed public procurement actors had never developed or granted tenders for rental or leasing solutions for anything other than cars. Some public procurers have never seen an offer of rental or leasing solutions in the sludge and wastewater treatment sector and have not considered this an option.

Amongst consulted public procurers, there was a consensus that there is an evaluation bias towards prices in procurement practices. While a PSS solution for processing equipment by Hjortkær Maskinfabrik has been shown to be cheaper in the long term through TCO calculations, they appear more expensive in a short-term perspective as the leasing cost will have to come out of the municipal operation budget rather than the acquisition budget. The evaluation bias is considered a problem and a barrier to PSS solutions, as linear procurement typically requires a one-time purchase using normalised budgeting approaches. In contrast, the PSS solutions (that include continued maintenance and repair of the machinery) require continued payment from the operations budget. The evaluation bias is a problem that most public procurers are very aware of and are trying to solve. However, based on predetermined selection criteria, the rigid evaluation process does not always give public procurers the option to take the best offer.

A general concern of non-compliance with procurement acts amongst public procurers was identified through the pilot project. While a wish to ensure compliance with procurement acts is desirable, the heightened focus on compliance was expressed to hinder the tender development process and the selection of innovative, and sometimes even sustainable, solutions. This indicates a need for increased guidance of public procurers and increased allocation of resources to immerse into sustainability strategies and evaluation processes.

The public procurers consulted had varying degrees of understanding of PSS solutions, their conceptualisation, and their benefits and pitfalls. PSS was not considered in their procurement processes for multiple public procurers because they had never been confronted with PSS solutions. However, the same public procurers were keen on learning more about PSS and how it could benefit public procurement.

The public procurers expressed challenges with implementing green public procurement, which likely impacts the breakthrough of PSS solutions to the B2G market. The challenges are not related to the availability of academic, governmental or grey literature on green public procurement but rather the availability of government-facilitated guidance for public procurement employees, resources to develop internal strategies, and internal capacity building. The pilot project indicated little time and few resources to improve the sustainability focus in the tender development and selection processes.

Some public procurers expressed skepticism toward rental, leasing, and Product-Service System (PSS) solutions, primarily due to perceived cost implications. Many viewed PSS options as more expensive, citing concerns about ownership structures, as municipal companies do not retain product value with rented or leased assets. A common approach among public procurers is to favor municipal ownership for substantial acquisitions, especially when equipment is permanently installed. In the wastewater and sludge treatment sector, much of the required machinery is bolted to treatment facilities, reinforcing a preference for outright ownership over leasing or rental.

Financing options, such as leasing, are generally seen as economically unviable. This perception stems from the additional income requirements of both product suppliers and financiers, which add costs and make leasing  more expensive than outright purchase.

Criteria development in Danish public procurement processes is typically divided into three phases: 1) the economic and sustainability aspects, 2) the legislative requirements and the office work related to public procurement, and 3) the technical aspects of the operational activities of the services provided to the citizens. The technical requirements are often considered the ‘minimum requirements’. When the minimum requirements are met, the price offered provides the context of the actual selection. The minimum requirements and additional criteria, e.g., sustainability included in tenders, are weighted differently, but the price is always an important parameter. While the price is still deemed the decisive factor in most tender evaluations, energy consumption, resource efficiency, and total ownership costs are gaining more weight in these processes. Some focus on energy efficiency, some on quality through market dialogue, and some on Total Cost of Ownership (TCO). Some concerns were conveyed regarding ensuring that the dynamic amount of wastewater and sludge could be treated through a PSS solution, as tenders seeking services often have a certain amount of waste treatment stated in the contract, making the selection of a PSS solution perceived as a risk.

In 2021, Hjortkær Maskinfabrik intensified its focus on green circular transition in its company and products. Following this process, the company developed a leasing scheme for heavy processing equipment as an addition to its product sale model. The leasing solutions offered by Hjortkær Maskinfabrik have been documented to increase avoidance of new production, extend product life, improve the use-phase of the processing equipment and reduce waste generation.

Hjortkær Maskinfabrik has improved the product design, enabling a product life span +10 years longer than similar equipment, unchanged product performance throughout the life span, and energy consumption of 90–95% less than similar technology, significantly improving the use-phase consumption. Further, the improvements in the product design have ensured that 80% of Hjortkær Maskinfabrik’s screw presses can be refurbished, using 20% new spare parts and that 98% of all of Hjortkær Maskinfabrik’s equipment can be recycled at the end-of-life (Hjortkær Maskinfabrik, 2021).

The municipal sewage sector favours buying over leasing equipment. A bias toward short-term costs makes long-term savings from PSS less visible in public procurement processes. Concerns about compliance with procurement laws also hinder innovative or sustainable solutions, signalling a need for better guidance and resources.

Public procurers had limited exposure to PSS solutions but showed interest in learning more. Challenges in adopting green public procurement, including a lack of government guidance and resources, hinder PSS implementation. The pilot project revealed that limited time and resources are available in public procurement processes to enhance procurement sustainability.

Public procurers are sceptical about leasing solutions due to costs and ownership concerns. They prefer municipal ownership for large, bolted equipment like wastewater treatment machinery, making leasing less favoured. Financing solutions are seen as costly because both suppliers and financiers need to profit. While legally allowed, leasing is not considered sustainable and is viewed as risky and expensive in public procurement.

Technical requirements are treated as minimum standards, with price being a key factor once these are met. Although price remains crucial, factors like energy consumption, resource efficiency, and total ownership costs are becoming more important. There are concerns about using PSS solutions for wastewater and sludge treatment due to challenges with composing technical requirements in tenders. Contracts often specify fixed amounts of waste to be treated, making PSS solutions seem risky for public procurers. They doubt whether such requirements can be included in a tender targeting PSS solution.

This leasing approach reduces new production, extends product life, improves equipment efficiency, and minimises waste. Hjortkær Maskinfabrik’s equipment lasts +10 years longer, consumes 90–95% less energy, and maintains performance. Additionally, 80% of its screw presses can be refurbished with minimal new parts, and 98% of its equipment is recyclable at the end of life.

PSS solutions for chemicals, e.g. performance-based business models, have been promoted by UNIDO since 2004. Chemical leasing models and models focusing on speciality chemicals have been established ever since (Formiconi, 2023). But still, Chemicals as a Service and other types of PSS solutions for chemical management are not well known in the Nordics. According to UNIDO, chemical PSS solutions can result in reduced consumption of chemicals and hazardous waste, better process quality, and a greater incentive for reuse and recycling of chemicals (Unido, n.d.), which could be relevant for many manufacturing companies in the Nordics.

A few Nordic providers offering PSS solutions for chemicals and chemical management have been identified, primarily in product- and use-oriented models. These solutions are exclusively targeted toward the B2B market, especially the manufacturing sector. ABB, a global company, provides a wide range of services across various industries, including the chemical plant industry (ABB, n.d.). According to ABB, the company operates with a circular business model, designing products to be durable and using sustainable materials to extend their lifespan while minimising environmental impact during production (ABB, 2023). ABB also runs a product take-back system and has implemented recycling strategies, though details about these processes remain undisclosed. Nevertheless, ABB’s efforts to integrate circular strategies throughout its operations are clear, gradually developing a PSS model. This approach could serve as a model for other companies in the Nordic market, where only a few chemical-plant-as-a-service providers are currently established.

Rental solutions for tools are interesting from an environmental impact perspective since most standard household tools are rarely used. A power drill is only used for around 18 minutes over its entire lifespan, resulting in the use phase of a drill contributing to only 2% of the life cycle emissions. A study of a drill rental solution showed that renting a drill six times can reduce emissions by 700 kg CO₂e in reduced material usage from avoided production (Skjelvik et al., 2017a). Therefore, PSS models for tools are an obvious solution for economical cost reductions and greater utilisation with reduced environmental impact as a result. PSS solutions for tools are prominent in the B2C and B2B markets and somewhat in the B2G market. Providers of PSS solutions for tools in the Nordics vary from small local SMEs to large globally established enterprises. Product-oriented and use-oriented models are most common within this study, although a vast range of product types and PSS models have been mapped.

Our pilot company, Nethire, is a Danish-based company established in 2017, which offers an online platform for short-term rental and long-term leasing of machinery and tools for craftsmen and contractors. As such, Nethire is a product-related PSS model operating mainly in the B2B market. Through their Nethire Community solution, Nethire aims to transform customers into Equipment Renters, enabling them to maximise the utility of previously purchased tools and thereby increasing their usage compared to if the tools were individually owned. The solution is currently only used by a single company, but Nethire is working on using the positive experience of their first client to expand the solution to other companies. The client has reported large financial savings from equipment sourcing, repair and maintenance, and in addition to this, there are significant environmental gains associated with the solution.

According to the EU Machinery Directive, all machinery that is sold or rented out must be accompanied by a user manual and safety guide in the language of the Member State. This practice is considerably more demanding for rental solutions, who must translate and hand out manuals and guides multiple times for the same product, rather than just once as in the scenario for equipment sellers. Rental solutions are also subject to occupational safety requirements by ensuring that rented machinery is properly maintained and calibrated. However, this exact process is Nethire’s expertise, and the company can exploit economies of scale since they carry out maintenance and calibration procedures more often than non-rental solutions. Occupational safety requirements pose a larger barrier for newly founded companies or rental solutions in the C2C market, who cannot exploit the same economies of scale.

Looking forward, Nethire expects to benefit from new regulation supporting the green transition. They are not affected by construction regulation in the same way as builders, since they are subcontractors, but expect to be able to figure as a positive aspect of other companies’ ESG-reports due to the environmental potential of rental solutions on machinery and tools.

The main barrier facing Nethire is having to convince a conservative industry to opt in on the culture change that it would be to engage in the Nethire Community. Interviews with craftsmen and executives in the industry reveal many cultural factors related to tools, which act as a barrier to PSS solutions on the area. Among these is the so-called “evaporation” of tools. According to executives, tools commonly evaporate from building sites either through theft, accident or forgetfulness, causing financial losses for companies. Nonetheless, executives are hesitant to enforce strict tracking of tools, e.g. through a rental company, as the evaporated tools are perceived as an unspoken employee benefit, and executives fear losing employees to other, less strict companies. This implies a bottleneck in adoption of the Nethire Community, which would need to be opened by pioneer companies, who can show executives that the solution is not detrimental to employee satisfaction and retention. In fact, Nethire Community’s current client has not experienced issues with employee retention, despite concerns prior to adopting the solution.

Another factor impeding PSS solutions such as Nethire Community is the preference of executives to keep their tool storage in-house, as this allows for direct contact between the company and its employees. Executives fear that outsourcing tool storage to Nethire could make them lose touch with what is happening on the ground in their company and that this could negatively affect employee satisfaction and retention. Furthermore, outsourcing tool storage could lead to companies having to let warehouse workers go, which they are reluctant to do, also with an eye on employee satisfaction. A final factor related to employee satisfaction is the low IT literacy of many workers in the industry, making online platforms unappealing.

A further cultural factor highlighted in interviews is the correlation between work identity and tool brand and condition. Craftsmen express concern that they as Equipment Renters would not feel assured that tools of the correct brand and condition would be readily available. This factor is also affected by a general distrust in the tool-handling skills of other craftsmen, who are believed to not take as great care of the tools. This is despite Nethire offering maintenance and repair, meaning that the Nethire Community’s tools are often of better condition than individually owned tools. However, craftsmen identify paying for this service as a barrier compared to their usual practice of simply replacing tools in need of repair. If Nethire and similar solutions can find a way to communicate the advantages of professional repair and maintenance, such as increased safety on construction sites, it could be a driver to increased adoption. A further cultural driver is the fact that renting is already common in the construction industry for machines and heavy equipment, meaning that rental practices and logistics are already in place, e.g. for when companies land a new construction project. These practices could be expanded to include handheld tools. Nethire’s founder also highlights a development in the construction industry from when Nethire first started in 1988, where renting was seen as a practice for “broke” craftsmen, to renting now being more common and even a “smart” solution.

IT is a key task for Nethire, who benefit from having worked in the area for 35 years. They can exploit economies of scale, as their many years in the industry have allowed them to develop a master database for tool administration. However, the development of the database posed a challenge to Nethire, which newly founded companies would have to be aware of. Systems, agreements and contracts need to be synchronised, which is difficult for rental solutions, who must navigate diverse pricing schemes and insurance requirements.

According to Nethire, a product’s daily rental fee is generally 1% of its price, but there are many factors, which can lower or raise the price, such as the rental period and use rate of the product. High use rates and long rental periods make price estimation easier, as this allows companies to know their earnings more precisely. Furthermore, insurance constitutes a large part of Nethire’s business. If a piece of machinery has more than 5 horse powers, a liability insurance is required, and this can be a challenge, as equipment renters can rent and rent out equipment through Nethire’s insurance. Nethire therefore operates with an insurance scheme that allows the company to ensure a product even if it is unknown to them.

Nethire Community’s client highly praises the benefits of outsourcing tool administration to Nethire, as this allows them to focus on construction matters and not spend resources on tasks outside their expertise area. Nonetheless, the path toward such symbiotic relationships between Nethire and their clients constitutes a barrier to increasing adoption of the PSS solution. Nethire needs to register their clients’ tools so that they can handle administration of them, and this process was often described as time-consuming and stressful, both internally to Nethire and externally. According to Nethire, their workers need approximately 10 minutes to register a tool in their system, and as they are reluctant to hire workers who are unfamiliar with their system to perform this task, tool registration for large companies can take more than a year. This also makes the process expensive in terms of man-hours.

Nonetheless, the client highlighted savings exceeding a million DKK from the first year of being part of the Nethire Community, and they expect to continue profiting from the solution. This is both due a decrease in purchases of new tools, but also due to new revenue streams from renting out unused gear to other companies. Nethire expects this factor to outweigh the barriers to their solution, and now that they have a client confirming the large financial savings, they look to increase their customer base over the coming years.

There is a significant potential for environmental gains from increased adoption of PSS solutions related to handheld tools. Among these is a reduction of raw material consumption by reducing the need for new tools through increased use rates of tools already in existence, while PSS solutions such as Nethire Community can simultaneously increase the lifespan of tools through regular, professional maintenance and repair. Tools are often made with materials, which have a high environmental impact, and by not being used or properly maintained, they become obsolete before end-of-life. Furthermore, rental solutions allow for purchase of better and more durable equipment, as renters don’t have to pay large sums up front for expensive equipment. When possible, Nethire pools rented tool orders together to transport many tools at once rather than having craftsmen drive to and from warehouses and stores individually, which decreases transport emissions per tool.

As a part of the NetHire pilot, a Life Cycle Assessment (LCA) of sharing a rolling scaffolding among B2B customers was conducted. The assumptions and goal for the assessment, are outlined in annex 2.

This pilot examined the total float of rolling scaffoldings and total days of renting per year at NetHire, and the functional unit was therefore determined based on this, making it: Use of rolling scaffolds 8,406 times per year, in 15 years in Denmark. The Nethire reference flow was the production and distribution of 50.2 rolling scaffolds for rental, utilised 66% of the time, each with an expected lifespan of 15 years. This was compared with individual ownership with the assumption that these scaffolding were used 20% of the time: Production and distribution of 100.4 rolling scaffolds for private use, utilised 20% of the time, each with an expected lifespan of 15 years.

The overall result was that NetHires' rental service would significantly reduce the environmental impact of rolling scaffolding. This conclusion applies to all 16 impact categories included.

The study included a hotspot analysis of NetHire's lifecycle phases, and as presented in figure 12, transportation has the significant highest impact (looking at CO₂e emissions). This differs from the environmental assessments done in other pilots, such as to-go cups and e-commerce packaging, but aligns with research assessing the environmental impact of PSS. One of the reasons why transportation accounts for most of the emissions is due to the product lifespan, and transportation during use will, therefore, be significantly higher than with products with a shorter lifespan. Investigating and reducing transportation emissions for these kinds of products and services will, therefore, have a significant impact on the overall performance of the system.

A sensitivity analysis has been performed on NetHire's transport distance. Since transport accounts for a relatively large portion of the total environmental impact, fluctuations in NetHire's transport distances also influence the overall environmental impact. The graph shows variations in transport distance of up to minus/plus 10%, with a baseline of 80 km round trip per customer. These variations strongly correlate with the corresponding total environmental impact, including the environmental impact from greenhouse gases, as illustrated in figure 13.

As the investigation of the utility was the most important assumption of the study, its importance was also tested. The utility rate is a well-known assumption for PSS and is important when investigating the possibility of reducing the need for production and resource use. In the case of NetHire, the utility rate was based on the number of rentals per year. A sensitivity analysis was conducted, where the number of rentals was reduced and increased. Figure 14 displays a graph indicating the breakeven for the utility compared to individual ownership, showing that NetHire can have a utility rate of 30% less than anticipated before breaking even with individual ownership.  This includes the assumption that the utility rate of 20% for the individual ownership does not change; an increase of the utility rate would impact the overall impact of the assessment, making the breakeven occur earlier.

Furthermore, an important induced impact when investigating an increased utility rate is the possibility of reducing a product's lifespan. As the rolling scaffolding with individual ownership would be used less frequently, it might not wear out at the same rate as when shared. This is a general assumption when assessing products with a high utility rate (see section 15).

As for most use-oriented PSS solutions, it is important to investigate whether the products that can be accessed through Nethire Community replace products that would have been bought and owned individually without the solution. If not, the solution risks introducing more products to the market, leading to an increase in production emissions. For example, rental solutions for scaffolding could lead to companies that previously could not afford the product taking on a higher number of projects requiring scaffolding, thereby increasing the production demand for the product, rather than substituting individually owned scaffolding with rental solutions.

Despite the potential environmental gains from collective transportation, the transport phase also poses a risk for rebound effects if the PSS solution’s vehicle fleet is not up to the standards of their clients’. For example, Nethire Community’s client has recently introduced electric vehicles into their fleet, while Nethire employed diesel vans for transportation. This is mainly because diesel engines are more powerful than their electric counterpart, making them more suited for transporting heavy loads. Nonetheless, when transporting lighter objects, diesel powered vans lead to significantly higher transportation emissions than electric vehicles. Furthermore, rental solutions cause an outsourcing of waste handling from the client to the PSS provider, meaning that the PSS provider must have good waste handling procedures for this not to become a rebound effect.

Nethire can help smaller companies access markets that they would otherwise be excluded from by allowing them to rent their way to a broader equipment selection. Furthermore, Nethire positively affects occupational safety for workers by ensuring proper maintenance and calibration of equipment.

PSS solutions for handheld tools, like Nethire Community, present considerable environmental and economic potential but face cultural and practical barriers to adoption. Craftsmen’s concerns about tool availability, brand preference, and trust in others’ tool-handling skills reflect a cultural attachment to traditional, individual ownership. Executives are also cautious, fearing that a shift to shared tools could negatively impact employee satisfaction and retention. Additionally, implementing the PSS solution involves a time-intensive tool registration process, which can initially be demanding and resource-heavy.

However, once integrated, Nethire Community’s client reports substantial benefits, including significant financial savings from reduced tool purchases and additional revenue from renting out unused equipment. By outsourcing tool administration to Nethire, the client also gains the freedom to focus more on core construction tasks rather than maintenance and logistics.

From an environmental perspective, PSS solutions like Nethire can lead to a reduction in raw material consumption by extending tool lifespans through regular, professional maintenance and repair. Furthermore, these solutions encourage the use of high-quality, durable equipment and reduce transport emissions by consolidating tool deliveries. If managed effectively, PSS solutions have the potential to significantly decrease the environmental impact of tool usage, making them a promising model for sustainable practices within the construction sector.