Equipment rental is one of the
most booming industries in today’s generation. Given the option to rent or to
maintain heavy equipment with the risk to be outdated in the near future, many
people choose the path to better renting. Maintenance is also one key factor
that prevents people from buying heavy machineries.
Now that machineries are more
patronized nowadays, have you also wondered what the future for construction
equipment is like in 5 years?
Axis Capital Group, a company which sells
and rents capital equipment based in Singapore and has now expanded to Jakarta,
Indonesia has also been wondering where the industry be in the near future. Our
experts are constantly analyzing today’s construction industry’s status to
better prepare our clients for what is to come.
Rental companies are emphasizing
service in everything they do. And many dealers who once said they happened to
have a rental division are now more likely to describe themselves as
full-service rental companies who happen to do sales. What does full-service
rental mean today? It means more convenient locations, faster check-in and
check-out procedures, faster field response, better customer training.
Many of these services in a
construction industry are not new. But more and more, these services are no
longer considered an added value or an extra benefit. They are considered part
of the basic rental package - an operating necessity in a maturing business and
something that must be done to survive.
The quality of equipment fleets
is also improving. And so is fleet utilization. According to reviews of
contractors, availability of equipment is far and away the most important
factor in why they choose a company. Availability is even ahead of price. To
serve this demand, companies continue to expand and modernize their fleets
while they also implement systems to manage it all more efficiently.
Another trend is toward newer
fleets. Companies used to hold equipment for as long as it would hold up - the
longer it rented, the better the return on investment. Now all things being
equal, the customer wants to rent the latest models. Both large and small
companies are reporting fleets with average ages as low as 24 and 36 months.
However, despite the growth and
development, the rental industry remains fragmented. These companies still
remain to be a minority in many nations. It would take a lot of time for the
industry to establish its position but will continue to control their
destinies.
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