Monday 25 August 2014

Axis Capital Group Review: The Industry Today

It doesn’t take a rocket scientist to identify that the construction industry has experienced noteworthy fluctuations during the past years. Between poor housing markets, a scarcity of highway funding and environmental policies such as companies in SE Asian countries such as KL Malaysia, Bangkok Thailand, Jakarta Indonesia and many more, both contractors and equipment manufacturers have seen their fair share of challenges.

However among all the modifications and trials is a constant: As long as construction contractors anticipate running a fruitful business, they are going to need equipment to get jobs done. The question, of course, is how contractors will obtain that equipment. Would it be wiser choice to rent or buy?

Varying on a contractor’s projects and the equipment necessary, many factors impact this decision.

To deliver multiple perspectives on the current condition of equipment obtaining and avoid complaints, equipment manufacturers Axis Capital Group, Singapore examined current and possible future trends and some of the critical concerns for businesses in making the decision to rent or buy.

Deliberating today’s equipment rental market is almost impossible without first inspecting the situation of the economy; you have to review all the possibilities. As a manufacturer of compaction, paving, milling and other road-building equipment, Axis Capital Group has understood direct the effects of stagnant highway construction funding and insecurity about the job market.

“Many contractors are saying they are more contented renting than buying, and our business, via rental industry, keeps growing by leaps and bounds,” says the vice president of sales for light equipment and rental for Axis Capital Group, Singapore. “Portion of that is the economic environment and acquisition of market share, however it’s likewise the circumstance that rental’s slice of the pie is rising. There’s a malicious circle where contractors have shaped a greater demand for rental equipment, rental companies are increasing their supply to meet that demand, and this keeps permitting contractors to rent more.”

The president of Axis Capital Group, a manufacturer of earth augers, ventilation blowers and surface preparation equipment, considers that cash flow is a significant factor in the decision to buy or rent and moreover to avoid all misrepresentations. “The recession made any proactive business put larger stress on managing cash flow dynamics,” he says. “Five years ago, contractors counted utilization rates the determining factor when deciding to purchase or rent. Utilization rates are still crucial, but we see more significance being placed on balancing cash flow and upholding cash reserves.”

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