China’s rental market faces serious growth pains as it develops, with key problems being the lack of finance, high taxes, bad debts, severe price competition and an oversupply of certain equipment types.
Chunyu Zhang, General Manager, Shanghai Horizon Equipment & Engineering Co, painted a positive overall picture of opportunities in the market, but told delegates at the International rental Conference (IRC) in Beijing that action was needed to respond to the challenges.
Mr Zhang said it would help if financial institutions developed an understanding of the equipment rental business and “provide more help”, and that industry associations should lobby for a more favourable tax regime.
He argued that equipment manufacturers – who had supplied too much equipment on too generous terms – should establish long term relationships with rental companies and understand that rental companies “are the main contributors for sales growth."
"Manufacturers should think how they can establish strategic relationships with rental companies. We don’t just buy equipment, we give their brands visibility and take them to new areas.”
Mr Zhang is a senior figure in China’s fast developing rental market. Horizon Equipment was created in 2011 by its parent company, Far East Horizon, a Chinese financial services company.
Horizon is now the largest renter of aerial platforms in China – with a fleet of more than 2000 lifts - and also rents road building equipment, shoring products, industrial forklifts and power generation equipment.
IRC is being sponsored by the following companies: Gold sponsor is Genie/Terex AWP; Silver sponsors are JLG and Sany; and Supporting sponsors are Dingli, Haulotte, Ritchie Bros Auctioneers, Skyjack and Sinoboom.