The rental business of lifting equipment in China still shows huge market potential compared with developed countries and is also generally considered to be the last frontier in the industry of construction machinery. However, the rapid fall in equipment rents in the past two years, the general decline in occupancy rates, plus various positive and negative market factors have all affected the future.
With the rapid growth of industry demand, the developing of market competitiveness, and the continuous support of industry platforms, risks such as the declining rental rates and profits, cash flow shortages, and rent arrears have all followed. Small and medium-sized lessors should take advantage of the flexible operation and local service and recognize the disadvantages of their small fleet size and weak capital strength to make early preparations to face the challenges.
Pros and Cos of Small and medium-sized Lessors
1, Flexible Business Model
Quick retail demand response
Simple Business Procedure
Flexible Payment Method
Efficient Management Sructure
Customer-Centric PR Strategy
2, Localized Service Model
Quick response to orders
Onsite Equipment with regular maintenance
Onsite Staff with local business contacts.
1, Small feet size with limited product supply and brand recognition.
2, Weak funding with high cash flow pressure and limtied ability to resist market risks.