Take the construction machinery lease as the engine

In recent years, our economy has experienced a new normal and the economic structure is undergoing a major transformation. After the construction machinery industry experienced a four-year low operation, with the introduction of various national policies, construction machinery companies are rushing to enter the post-market blue ocean, and actively promote the Internet+, the entire industry has seen new hopes. The next few years will surely be a critical period for industrial transformation. The unregulated market for construction machinery will soon change. According to Wang Taobo, CEO of Jihui Network, we should use engineering machinery leasing as an engine to drive the transformation of the entire industry.

Construction Machinery Leasing Status

In foreign countries, the United States, Japan, and other developed countries sell 65% of the local market for construction machinery sold through leasing, and leasing has become the most important sales channel. The consumption of construction machinery and equipment leasing accounts for 80% of the market demand for construction machinery, and the turnover of the global construction machinery leasing market is equivalent to one quarter of the total output value.

The construction machinery rental market in China has an annual turnover of only 15 billion yuan to 20 billion yuan, which is less than 10% of the total output value of domestic construction machinery and equipment. In the entire construction machinery leasing market, 40% to 50% are used for leasing, and a few equipment can reach 70%. The market potential is very large. At present, there are more than 11,500 construction machinery leasing companies in China. However, there are less than 100 large-scale and professional companies engaged in the leasing of construction machinery. Most of the machinery is held by small leasing companies and individuals, resulting in chaotic price systems and lack of credit. , vicious competition, and inadequate supporting services.

Many companies are optimistic about the development of the rental market, but how to standardize leasing to better develop the market, this is an issue we need to consider.

How to transform the construction machinery industry

The construction machinery industry needs to use leasing as an engine to transform how to switch to the post-construction machinery market and transfer to the “Internet+” of traditional industries.

Why can leasing lead to transformation? There are many problems in the construction machinery leasing market in China that will drive the transformation of the entire industry. In particular, at present, our construction machinery leasing business is lack of supporting services. Most companies and individuals provide physical leasing. In the event of failure of mechanical equipment during the leasing period, it will bring greater losses. As a result, the lease of construction machinery led to ancillary services, that is, aftermarket services. We need timely maintenance, transportation and other resources.

On the other hand, how do we regulate the market and better solve the problems of lack of credit, price confusion, and vicious competition? This is no longer so difficult in the era of Internet+.

Therefore, the transformation of our industry needs the cooperation of various services in the post-market, combined with the active promotion of the Internet+.

The transformation of the industry is imperative. We are striving to solve the pain points in the industry by focusing on the users. Leasing is used as the engine to improve supporting services and actively promote the transformation of the industry.