2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
Transportation 24 special equipment rental service announced a new acquisition. It was the Raise.ru trading platform dedicated to trucks and special vehicles. This merger will allow buyers to immediately enter the rental market.
Until 2002, the rental of special equipment in Russia was loosely regulated. The markets of the USA and Western Europe acted as an example here. By 2014, the situation had changed dramatically, as construction was developing at an active pace. Developers had to attract more equipment. Annual rental growth reached 25%. The changed order of customs taxation and the economic situation led to the fact that many companies refused to purchase new equipment, preferring to rent it or buy used equipment.
Increased demand has led to increased competition and falling rental rates. By 2015, many companies had to leave the market. Previously, new equipment fully paid off after a maximum of two years of operation. Now, the increased cost of machines and the inability to significantly increase rental rates do not allow regular renewal of equipment.
Perevozka 24 service specialists talk aboutsome improvement in the situation in the equipment rental market in the period from the end of 2016 to the beginning of 2017. Landlords' rates showed a slight upward trend. The reason was a slightly increased demand and competition among small businesses. More than 70% of contractors prefer to rent special equipment rather than buying it. This could lead to further price increases and subsequent purchases.
Private developers are not going to purchase equipment in order to implement a short-term project. Instead, they prefer renting. Large companies have gone the same way. The main reason for this trend is cost savings. The maintenance of special equipment is too expensive, not to mention its complete renewal. Even if the cost of rent increases, the purchase will still remain a less profitable option.
Throughout 2016, the cost of rent did not change. It increased only in autumn, by 5%. Rent growth in 2017 will be up to 10%. There is a significant demand for narrow application equipment such as vacuum cleaners or water carriers. Such equipment is at the disposal of large companies, and it is more expensive than the rest.
Experts of the international analytical company Freedonia Group predict a major leap in the development of the mining and construction industries. This may provoke an increased demand for the rental of front loaders, as well as excavators and other special equipment. The merger of Raise.ru and Perevozki 24 will be especially beneficial in light of the possible stabilization of the market.
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