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The rental market of construction machinery industry

 Is our country's construction machinery leasing business in the 1990 s before and after the emergence of new things. In recent years, the rapid development of domestic infrastructure construction, especially in the west to east gas pipeline, the south-to-north water diversion project, the development of the western region and urban infrastructure construction to implement and promote, provides a huge market for construction machinery industry. With the increasing demand for engineering machinery and equipment, machinery rental business opportunities for the development.

Formal lease enterprise in market competition due to the cost management and maintenance is higher than that of small rental companies, and leasing companies in terms of service, maintenance, though less formal enterprise, but they provide extremely tempting price relative to the shortage of funds for construction enterprise, it has strong appeal. Make the bidding enterprise to get the project bidding system, the bidding price is generally better than the pre-tender estimate price low, lead to serious funding gap, to keep the normal engineering spending has not easily, and some engineering funds can't reach the designated position, so the construction unit of comparison pay attention to the price when you lease equipment factors. With before big domestic leasing enterprises "Deere leasing company" as an example to illustrate this point, as the world's top 500 enterprises of John Deere, its strength and enterprise production management idea should be more mature, but its investment in mainland China to set up "Deere rental company" only lasted for more than three years, the failure is mainly due to the domestic leasing market price system is chaotic, disorder competition leads to low return on their investment.
Compares a standard rules in business operations, and is more flexible, small business makes regular enterprise in competition often by small businesses. And domestic rental industry is still in the initial stage, the enterprise scale is not big, single service mode, can provide service for enterprises still have to stay on the leased equipment the primary level, and other small, compared to guerrilla type leasing companies, there is no advantage in service.
Market rules of the game should be the big fish eat small fish, but the rental market is a big fish small fish this violation of the phenomenon of market rules of the game. Enterprises in the development of a few years had a certain scale after this should continue to do strongly does, but in the rental market, often perform with a newly developed enterprise, due to a series of management and property rights issues, divided into two parts to produce more small businesses.
Rental market there are serious rent arrears phenomenon. For rent in arrears are diverse, but there is a big part to malignant default, leasing company ego to protect consciousness is not strong, the vicious competition is one of the reasons.
 
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