Industry status of domestic construction machinery equipment rental market

1. Overview of the construction machinery rental industry

Construction machinery refers to the general term for all machinery and equipment used in engineering construction. Different countries in the world have different names for it. Germany calls it construction machinery, Japan calls it construction machinery, and the United Kingdom and the United States call it construction machinery equipment. In my country, construction machinery is an important part of the equipment industry. In my country, all machinery and equipment used for construction and construction in the fields of transportation, urban construction, construction, industry, electricity, national defense, etc. are collectively referred to as construction machinery. Chinese construction machinery is very suitable for leasing, and there is a very broad development space in leasing, which is determined by many factors.

Although my country's construction machinery leasing industry has been greatly developed, there is still a huge gap compared with developed countries in the world. From a global perspective, the market for construction machinery leasing accounts for 25% of the total value of construction machinery. Only 10% of my country's construction machinery products have entered the leasing market, while this figure in Europe is 85%. There are relatively few companies engaged in construction machinery leasing in my country, and their scale is not large. From the perspective of demand, the demand for leasing accounts for 80% of the international demand for construction machinery, while my country only accounts for 10%.

2. Product status of the construction machinery rental industry

The business of my country's construction machinery rental companies is mainly concentrated in earth-moving machinery, road machinery, lifting machinery and concrete machinery. Among them, the number of companies involved in earth-moving machinery rental is the largest, accounting for 42.3%. With the development of the times, more and more rental companies are now adopting diversified product operations and comprehensive contracting services to meet the needs and preferences of different types of users.

In terms of the market size of subdivided varieties, the largest ones are excavators, loaders, and tower cranes. In terms of product rental, the monthly rental of tower cranes with lower frequency of use is higher, while the monthly rental of forklifts and loaders with higher frequency of use is lower.

3. Enterprise structure of the construction machinery leasing industry

In 2020, there are more than 50,000 construction machinery leasing companies in China, but the scale of enterprises is generally small, mainly small and medium-sized leasing companies. There are no more than 100 professional construction machinery leasing companies with assets of more than 100 million yuan in China; the asset scale of domestic construction machinery leasing companies is mostly concentrated below 100 million yuan, of which the number of companies with assets below 10 million yuan accounts for 35.7% of the total, the number of companies between 10 million and 50 million yuan accounts for 25.1%, and the proportion of 50 million to 100 million yuan accounts for 13.5%.

At present, professional leasing companies engaged in construction machinery leasing in China are mainly divided into four categories: the first category is professional leasing companies separated from construction companies. The mechanism of this type of enterprise is relatively rigid, but the equipment and technical strength are relatively strong; the second category is leasing companies operated by agents. The number of equipment of this type of company is small, but the technical strength is strong and the marketing is better; the third category is leasing companies with manufacturer backgrounds. These companies have fewer types of equipment, but strong technical strength and good marketing; the last category is individual leasing companies, which have flexible mechanisms but small scale.

IV. Existing problems in the construction machinery leasing industry

1. High risk of capital chain rupture

Because of the continuous and rapid growth of the number of construction machinery, the leasing industry has been faced with fierce market competition, and equipment leasing has become more difficult. Even if the leasing is successful, it is still difficult to recover the rent. The equipment of many leasing companies is obtained through financing. If there is no business volume and a stable source of rent, the repayment pressure to the bank will follow. In the industry, it is very easy for leasing companies to default on bank loans on one end and on suppliers of fuel and accessories on the other end, while holding a large amount of rent receivables. If the turnover is not smooth for a long time, the capital chain may be broken.

2. Poor operating environment

In recent years, the development momentum of construction machinery leasing has been rapid, covering almost all construction machinery products. The more prominent problem at present is that the growth of "quantity" has not directly brought about a leap in "quality". There are still a large number of irregular market behaviors in the industry: first, there is a lack of industry norms and standards, and the role of some existing behavioral rules is not fully exerted; second, the tax system needs to be improved, and relevant policies lack a certain degree of strength; third, the understanding of the leasing industry is not mature enough; the acceptance and recognition of the leasing industry cannot be compared with those in developed countries in Europe and the United States, so it has also formed certain obstacles to the healthy development of the domestic leasing industry.