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How to properly running the aerial work equipment rental industry?

Feb 04, 2023

Aerial Work Platforms Renting Industry, Correct Business Process

In recent years, with the continuous expansion of the field of aerial work, coupled with many factors such as accelerated project progress, increased safety awareness, and fading demographic dividends, aerial work platforms have gradually been used in my country, and the market has become increasingly prosperous.

Coveting the attractive cake in the aerial work platform market, many companies with mixed quality and bad are scrambling to enter the field of aerial work platforms. As a result, under the appearance of prosperity, there are low-cost-effective products, disorderly competition, self-production, self-rental, unstable investment, etc. Some abnormal and irrational phenomena are getting worse and worse, which hinders the healthy development of the industry to a large extent.

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So, how does the aerial work platform industry run healthiest? Combining the current actual situation of the industry in Europe and America, Shandong Cathay Machinery Co, Ltd puts forward the following suggestions for reference:

 

1. Focus on quality and cost performance first;

For some lessors, the purchase of equipment often does not consider cost-effectiveness, but obtains equipment through low prices and zero down payment. As everyone knows, this move is very inappropriate. Restricted by some manufacturers' production, technology, and many other reasons, these equipment safety hazards are ubiquitous, and it is even very likely to cause accidents of varying degrees. Small accidents continue during the warranty period. Once the warranty period expires, quality problems will explode. Maintenance and after-sales cannot keep up. The three-year cost has just been recovered, but the equipment is almost scrapped. Where does the profit come from?

Therefore, when choosing equipment, lessors must pay attention to cost-effectiveness and avoid purchasing methods such as low prices and zero down payment. Otherwise, blindly believing in low prices will lead to frequent equipment quality problems, lack of construction safety, low work efficiency, and face serious risks such as business disruption or even closing down.

Moreover, the manufacturers of these inferior products, in addition to flaws in product quality, will often passively upgrade and transform their products due to immature technology. This will greatly increase the purchase cost of accessories and maintenance for lessors, and the second-hand market will be difficult to digest in the later stage because it is difficult to price without quality and brand. Therefore, it is recommended that these manufacturers focus on cultivating brands, ensuring quality, and maintaining product stability during the production process, so as to reserve residual value profit margins for lessors in the subsequent second-hand market.

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2. Change the concept of leasing and advocate equipment sharing;

At present, a considerable number of domestic leasing companies are small in scale, with few types of leasing, low market concentration, narrow customer range, and difficulty in adapting equipment to different working conditions. The types of product procurement should be diversified, and strive to meet various environments and various work requirements. In response to this phenomenon, it is recommended to cooperate closely with lessors in the region. One is to realize the sharing of leased equipment, exchange what is needed, and avoid idle equipment and the resulting waste of funds in the later stage; the other is to change the concept of leasing and establish the idea that equipment can be bought and sold at any time. In short, it is to make the equipment flow like running water. This requires lessors to reverse the inherent outdated concepts and actively link up with each other.

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3. It is not advisable for manufacturers to specialize in the technology industry to produce and rent by themselves;

Tempted by the prosperity of the aerial work platform market, some manufacturers have adopted the operation mode of self-production and self-rental to enter the rental market.

This is actually a big misunderstanding. First, no matter whether for people or enterprises, there is a specialization in the technology industry. Manufacturers belong to the manufacturing industry while leasing companies belong to the service industry. The two industries have different divisions of labor and different operating modes. Only by performing their duties and showing their abilities can they be more efficient, professional, and sophisticated. Otherwise, if you get involved rashly, your positioning will be disordered, and the consequences will be unimaginable. The second is that the manufacturer's involvement in the leasing industry will seriously disrupt the leasing market: the products produced by the manufacturer cannot be fully rented by themselves, so the lessors in the market are bound to have the manufacturer's products, which will undoubtedly lead to self-competition, and the manufacturer and the outside itself The products are fighting against each other, which is a great harm to the lessors that I have cultivated through years of hard work.

Without sharing, it is not economical. Only by knowing how to share can we succeed. Manufacturers and lessors should follow the principles of openness, cooperation, and sharing, take into account the interests of lessors when pursuing their own interests, promote the development of lessors while seeking their own development, and then form a community of interests. Only in this way is the way of survival and development.

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4. The operation should be stable and the ability to resist risks should be enhanced;

Due to the prosperity of the currency market and the promising prospects of the aerial work platform market, a large number of funds have poured into the aerial work platform leasing market, and lessors have sprung up like mushrooms after rain. This has undoubtedly promoted the development and growth of aerial work platforms. However, it should be pointed out that if the management of lessors cannot keep up, their operations are not stable, and they have high leverage and high debts, vicious competition between them will be inevitable. Without competition, it is impossible to progress; but without cooperation, it is impossible to become stronger. In view of this, it is recommended that lessors should work intensively and gradually, maintain a reasonable level of leverage and operate steadily, and furthermore, form a cooperative situation of healthy competition among each other. Although the aerial work platform industry is in a good situation, judging from the current equipment holdings and application fields of aerial work platforms, it is still in the industry cultivation period. Therefore, in order to develop healthily, there is still a long way to go. In addition to the close cooperation of manufacturers and lessors, it also requires the management department of the construction machinery industry to keep pace with the times and improve relevant laws and regulations on working at heights, so as to promote the upgrading of the working at heights industry.

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The above are related questions about how to operate the aerial work industry correctly organized by Shandong Cathay Machinery Co, Ltd.
Feel free to drop us a message to discuss more in the industry.

Shandong Cathay Machinery Co., Ltd
Email: sales@cathaylift.com

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