Another High-growth And High-return Industry After The Popularity Of Excavators. Transition To Aerial Work Platform Rental!

- Aug 08, 2019-

In the past three years, the excavator market in mainland China has been very good, many enterprises have exceeded their annual sales plans. However, looking back to 5 years ago, the excavator market was in a very difficult state, with a large number of equipment circulating in the market and basically reaching saturation, making the company's original business development even more difficult.


At this time, do you want to find a relatively simple and long-term stable investment project? If so, I would like to recommend aerial work platform leasing and introduce the market prospect, return on investment and advantages of leasing business one by one.


First, analyzing from the data. In North America, there are more than 500,000 aerial work platforms and more than 300,000 in Europe. The aerial work platform rental business in these areas has developed for decades and is very mature. The Asia-Pacific region is still at the stage of development, with the largest number of Japan and South Korea, each with more than 50,000 units, and mainland China with about 45,000 units by the end of 2018. What needs to be focused on is Hong Kong, where the leasing of aerial work platforms has been developed for about 20 years and currently has about 12,000 units. Hong Kong, with an area of only 1000km2, has over 10,000 aerial work platforms. If the Chinese mainland market develops, the number will be hundreds of thousands or even millions, showing its huge development potential.


Second, comparing the growth rate. The annual growth rate in Europe and the United States is 3%, and the annual growth rate in mainland China in the past 3 years is about 30%~40%, indicating that the market of aerial work platform in mainland China is in a rapid development stage. Again, look at the application field. Many kinds of construction machinery, such as excavators and cranes, have single functions and narrow application fields. However, the application of aerial work platforms is unlimited. They can be used for the construction of steel structures, as well as indoor installation projects. They can also be used for bridge maintenance or oil painting projects in the outfield. Aerial work platforms can be used wherever workers are required to work at high altitude. Therefore, aerial work platform renters are discovering new applications and new customers every day.


Fourth, judging from the return on investment, the operation of aerial work platform leasing is relatively simple, with a wide customer base and a high and stable rental rate. If equipment is purchased through various financing channels, high cash flow and high rate of return can be achieved. The difference between aerial work platform leasing business and construction machinery leasing such as excavators and cranes is mainly manifested in that it is a so-called leasing without operators, which is very simple in staffing and management; The aerial work platform has a simple structure, relatively low requirements on the number of service personnel and technical level, and low daily maintenance and maintenance costs.


If you are optimistic about the development of aerial work platform leasing business, how should you choose a suitable brand to start with? My suggestion is to choose a brand with high local market share, brand and popularity. This will be of great help in the early stages of business development, and at the same time, the brand needs a stable and experienced team to help you start your business. Finally, it is extremely important for developing markets to determine whether the brand has a stable business policy to develop its business.


In addition to the above points, when determining the brand and preparing to start the leasing business, the return on investment shall be calculated by considering the full life cycle cost of the equipment, i.e. all the costs of purchase, use, depreciation, sales of second mobile phones, maintenance, etc.


Under normal circumstances, the calculation of the rate of return on investment starts with the income, that is, the monthly rent of the equipment, multiplied by the rental rate of the current month, minus all operating costs, including maintenance, repair, labor, materials, transportation, etc., and then divided by the cost of purchasing the equipment to remove the vacancy. This is the rate of return on investment. After analysis, it will be found that although the purchase price of some brands is very low, the total cost or the rate of return is not the best after deducting maintenance, transportation and other costs, so be careful when choosing products.


As a primary brand in the domestic aerial work platform industry, Runshare Heavy Industry is not only established in 2007, which is the earliest enterprise in the industry based on aerial work platform manufacturing, but also in terms of technology deposition (research and development technology team of aerial work platform of Zoomlion Research Institute). Can be rated as the industry's best boom lift aerial work platform manufacturing enterprises. To be sure, Runshare Heavy Industry can provide customers who want to rent equipment with a full life-cycle solution. From market information, project information and experience sharing entering the market, to providing high-quality products, as well as various financing channels during procurement, perfect after-sales and training facilities after purchasing equipment, etc., can help customers solve all difficulties encountered in operation.