Nikken Corporation plans to develop its rental business in the industrial sector so that it contributes half of the company's revenue by 2020.
Revenues from this sector for this major Japanese rental company amount to 35% of the total, with the remaining 65% coming from construction.
"We are pursuing a strategy of growing our revenue in the industrial sector," announced Masaki Kurita, Nikken Corp CEO, during his keynote speech at the International Rental Conference in Shanghai, China, on 24 November.
"I believe that we can play a key role in the industrial equipment rental sector," Mr Kurita continued.
The move is a response to increasing challenges in the estimated JPY one trillion construction equipment rental market in Japan.
More than 2500 players are competing for that business and rates are facing stronger pressure, Mr Kurita said. "The market has become too competitive. The easy days have gone. We need to offer something different that competitors cannot copy."
Compliance with rules and regulations is key to success in the market but huge effort, energy and cost is required in maintaining this, Mr Kurita said.
Nikken Corporation, started in 1967, is one of the top 20 rental companies in the world. It has 2,379 employees and 237 rental locations. The equipment fleet of 6,200 units is valued at JPY 170 billion (US$ 1.7 billion).
The one-day IRC conference took place on 24 November at the Double Tree Hilton hotel in Shanghai, China. The event was attended by 280 industry executives.