In the past three years, the excavator market in mainland China has been very good, and many enterprises have overfulfilled their annual sales plans.
But think back to five years ago, the excavator market was in a very difficult state. A large number of equipment circulated in the market and basically reached saturation state, which made the original business development of the company more difficult.
At this point, do you want to find a relatively simple model, and is a long-term stable investment project?
If so, I would like to recommend aerial platform leasing to you, and introduce the advantages of market prospect, return on investment and leasing business one by one.
First, analyze the data.
There are more than 500,000 platforms in North America and more than 300,000 in Europe, where the aerial vehicle rental business has been well established for decades.
The Asia-Pacific region is still in the stage of development, with the largest numbers of Japan and South Korea, each more than 50,000 units, and the Chinese mainland around 45,000 units by the end of 2018.
What needs to be paid attention to is Hong Kong. The leasing of aerial work platforms in Hong Kong has been developed for about 20 years, and now there are about 12,000 units.
Hong Kong, with an area of only 1000km2, has more than 10,000 aerial work platforms. If the market in mainland China develops, the number will be hundreds of thousands or even millions, which shows its huge development potential.
Second, compare growth rates.
The annual growth rate in Europe and the United States is 3%, while the annual growth rate in the Chinese mainland in the past three years is about 30% to 40%, indicating that the market for aerial work platforms in the Chinese mainland is in a stage of rapid development.
Again, look at the application domain.
Many varieties of engineering machinery, such as excavators, cranes, single function, narrow application field, but the application of aerial work platform is infinite, can be used in the construction of steel structure, can also be used for indoor installation, you can also do some maintenance or painting in outfield for bridge engineering, as long as it is need worker in aerial work place can use aerial work platform.
As a result, aerial platform leasing operators are discovering new applications and new customers every day.
Fourth, from the perspective of investment return, the operation of aerial work platform leasing is relatively simple, with a wide customer base and a high and stable occupancy rate.
High cash flow and high rate of return can be achieved if equipment is purchased through a variety of financing channels.
The main differences between the leasing business of aerial work platform and the leasing of construction machinery such as excavators and cranes are as follows: it is a so-called dry leasing, that is, the leasing without operators, which is very simple in staffing and management;
The structure of the aerial work platform is simple, and the requirements for the number of service personnel and the technical level are relatively low. The cost of daily maintenance and maintenance is also low.
If you are optimistic about the development of aerial work platform leasing business, how should you choose a suitable brand as a start?
My advice is to choose a brand with a high local market share, brand and awareness.
This will be a great help in the early stages of your business, as well as having a stable and experienced team to help you get started.
Finally, you need to determine if the brand has a stable business policy to grow the business, which is extremely important in developing markets.
In addition to the above points, when determining the brand and preparing to start the leasing business, it is also important to consider the full life cycle costs of the equipment, i.e. the costs of procurement, usage, depreciation, second phone sales, maintenance, etc., to calculate the ROI.
Generally, the ROI is calculated. First, the income, i.e. the monthly rental of the equipment, is multiplied by the occupancy rate of that month, minus all operating costs, including maintenance, repair, labor, materials, transportation, etc., and then divided by the cost of the equipment purchased, and the vacancy is removed. This is the ROI.
Through analysis, we can find 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 and transportation costs. Therefore, we should be careful when choosing products.
From market information, project information and experience sharing, to providing high-quality products, various financing channels during procurement, and perfect after-sales and training facilities after equipment procurement, we assisted customers to solve all difficulties encountered in operation.
