Leasing is an inevitable trend in the construction machinery industry

Mondo Social Updated on 2024-01-29

"As for whether to do leasing business, my suggestion is: if you choose to continue to survive in the construction machinery industry, then leasing is a historical necessity, and you must do it. At the 2023 China Construction Machinery Marketing & Aftermarket Conference, at the summit dialogue with the theme of "Harmony and Mutual Assistance, the Future is Expected", Cheng Xiaoming, Managing Director of Hitachi Construction Machinery Sales (China)**, elaborated on the leasing business.

/ construction machinery

Editorial Department of this journal.

This article is about 3000 words and takes about 5 minutes to read.

In the current global situation, the construction machinery industry is standing at a new starting point. With the rapid development of technology, the improvement of environmental protection requirements and the changing policy orientation, the impact of the rapid changes in the world situation on the global market is profoundly changing the development logic of the industry. In the face of great changes unseen in a century, it is foreseeable that manufacturers will face a full range of structural changes in the future, and the risks they face will be more complex and systematic, so the traditional development path is obviously no longer suitable for the future of the first business, in order to grasp the opportunity in the next cycle of upward movement, to win a place in the future market, it is necessary to carry out model innovation. This is reflected in the trend of the front and rear markets, and the first merchants have begun to transform to the back market with the main goal of seizing the former market share. In the process of changing the incremental market to the stock market, the profit margin of selling new machines has been gradually squeezed, in order to increase profits, countless first-class merchants have blindly entered the aftermarket, but with little effect, the aftermarket income can not be complementary to sales at all, and the things that have come back are endless.

Cheng Xiaoming, Managing Director of Hitachi Construction Machinery Sales (China)**.

Obviously, although the "aftermarket" has already become a hot topic in the construction machinery industry, it is also regarded as a "place for the military", but there are very few first-class businesses that can really gain a foothold in the aftermarket, and here is a "forbidden area" for small and medium-sized businessmen recognized by everyone. Some of the best businessmen who have made some achievements still call the after-market business they have been working for decades as the nature of playing tickets, which shows that "easy to know and difficult to do" is a prominent feature of the development of after-market business. At the root of the problem, the business type is not systematic, the quality of the staff is backward, the cash flow is not abundant, and all the ills accumulated during the boom period of construction machinery have become an important factor in dragging down the market, and these are also closely related to the success of leasing.

With the era of large-scale infrastructure projects has become history, the advent of the era of fragmented engineering, similar to the crux of the difficulty of recovering the payment of engineering projects, the development of the aftermarket field is full of variables, and the customer's purchase logic is slowly changing qualitatively, and the willingness to buy the whole machine is gradually decreasing at the moment, leasing has begun to become a "good medicine" for curing diseases, but this medicine is bitter, and the course of treatment is long, and it is necessary to change from head to toe if you want to be effective. Just like Cheng Xiaoming said in the dialogue, although leasing is a way of capital operation, it should not be regarded as just a business, we should regard it as one of the sustainable management plans of enterprises, through fine management, rectification of the supporting operation system, in order to truly change the status quo of the first business.

The development potential of leasing

In the process of industrialization, developed countries have accumulated a lot of experience and lessons. By referring to the development of the construction machinery industry in developed countries, it helps us to understand the general laws and trends of the development of the industry, so as to better cope with future challenges. In the survey of the popularity of construction machinery leasing in developed countries, it is not difficult to find that the market penetration rate of leasing is constantly increasing. At a time when the number of projects is gradually leveling off, this model can not only alleviate the financial pressure of enterprises, improve equipment utilization, reduce maintenance costs, but also promote mechanical upgrading. Therefore, leasing has become an inevitable development trend of the construction machinery industry in developed countries such as Europe and the United States.

In recent years, China's construction machinery industry has been affected by the sharp decline in infrastructure. In this case, in order to promote economic recovery, China has further accelerated the process of new urbanization, in the construction of a new model of real estate development and the background of fragmentation of infrastructure construction, the advantages of the leasing business of the construction machinery industry have gradually emerged.

First of all, China's urbanization rate still has a lot of room for improvement, coupled with the replacement of the existing stock of the market, China's construction machinery market still has a large demand potential. Compared with direct purchase, construction machinery leasing is more flexible and lower cost, which can reduce the investment amount of fixed assets of enterprises. Therefore, more and more enterprises have begun to choose to lease construction machinery, especially general-purpose construction machinery, to meet their construction needs to cope with the current era of fragmented engineering.

Secondly, with the continuous progress of construction machinery technology and the improvement of environmental protection requirements of the environment, construction machinery has accelerated the transformation from the third to the fourth, the old equipment has been gradually eliminated, and the investment in new equipment requires a lot of money. In this case, leasing becomes a more affordable option. By leasing new equipment to meet production needs, it can not only reduce the financial pressure on the company, but also improve production efficiency without wasting resources.

In addition, the country's policy support for the construction machinery industry is also an important factor in promoting the development of the leasing market. In recent years, the state has introduced a series of policies to encourage the development of the construction machinery leasing industry, including tax incentives, financing support, etc. The implementation of these policies has helped to increase the market penetration rate of construction machinery leasing.

How to do a good rental

Judging from the current situation of the construction machinery industry, the awareness of the construction machinery and equipment leasing is still relatively weak, and the revenue level of the construction machinery leasing industry is much lower than that of developed countries, and the market penetration rate still has a lot of room for improvement. **Traders need to grasp the next trend of the market to adapt to the changing market demand and policy environment.

For the leasing business, scale and standardization are the keys to success. Businesses need to take a series of measures to improve their competitiveness in order to seize market opportunities. At the aftermarket forum of the 2023 China Construction Machinery Marketing & Aftermarket Conference, Yang Kui, CEO of Juguangyuan (China) Financial Leasing, put forward the following opinions for the ** business group based on Juguangyuan's work experience over the years.

Yang Kui, CEO of Juguangyuan (China) Financial Leasing.

First of all, the first business needs to establish a large-scale leasing business system. This includes the establishment of a sound leasing process and management system, including the signing of the lease contract, the delivery and delivery of equipment, and the collection of rent. By operating on a large scale, the company can reduce operating costs, improve efficiency, and meet the diverse needs of customers for equipment. In addition, the leasing business can be uploaded to the cloud, the whole process**, to facilitate data analysis and refined management. However, it is important to note that a large-scale system is not a castle in the air, and the premise of building a stable system is to have a high occupancy rate and stable cash flow.

Secondly, the first business needs to pay attention to standardized management. In the leasing process, the maintenance, maintenance, insurance and other aspects of the equipment need to strictly comply with relevant laws and regulations. **Business needs to establish a professional team to be responsible for the maintenance and maintenance of the equipment to ensure the safe and stable operation of the equipment. At the same time, the first business needs to establish a whole-process management and control plan in terms of risk. Before leasing, it is necessary to identify and predict risks, and clarify the bottom line of customer access, that is, assets must cover revenue; Strictly manage the process in leasing, and formulate appropriate cooperation plans according to time; After the lease, the creditor's rights department and the legal department should intervene in the collection action in a timely manner.

In addition, traders also need to pay attention to market changes and the impact of policies. With the adjustment of national policies and changes in the market, the best business needs to constantly update their business models and business strategies to meet the needs of the market. For example, the best business can meet the individual needs of customers by providing customized services, and improve customer satisfaction by providing a full range of services.

Finally, we need to strengthen communication and cooperation with customers. In the leasing process, the first business needs to establish a close cooperative relationship with customers, understand customer needs and feedback, solve problems and provide services in a timely manner. At the same time, the best business can also cooperate with customers to gain an in-depth understanding of market trends and changes, and adjust business strategies in a timely manner.

As Yang Kui said in his speech, "there must be two of the three of full payment or high down payment, long account period and high repayment rate, in order to operate steadily in a market with highly uncertain payment collection." "The difficulty of leasing comes from all sides, and the complex operating structure is the reason why leasing has become a difficult strategic location, and it is also the reason why it attracts a lot of attention. Different brands, different equipment back to the same running line, under such a premise, do a good job in leasing this topic is a qualitative leap for all the best businessmen. Therefore, even if risks and opportunities coexist, the best businessmen must grasp this cable to the future. In the initiative to change, play a new round of chess games in the construction machinery industry.

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