With the continuation of large-scale infrastructure investment in China, it has brought great market opportunities for China's construction machinery leasing industry. According to statistics, the compound annual growth rate of the construction industry in China exceeding 23% per year and the subsequent effect of the country’s investment of 4,000 billion yuan have caused the total amount of the construction machinery leasing market to exceed 300 billion yuan. Faced with such a huge construction machinery leasing market, how to better enhance the company's own profitability has become a focus topic for China's construction machinery leasing companies. Here, the Win-win-win experts combined with the development history of Pangyuan Leasing, discussed and communicated with industry peers on the topic of how to improve the core competitiveness of leasing companies from the two levels of “skill†and “trackâ€.
Industry opportunities:
More customers prefer to lease infrastructure investment will further stimulate the market demand for large and medium-sized aircraft models, especially for lifting equipment. Among all models participating in the construction machinery leasing business, the generators and air compressors are the ones with the lowest profits, and the truck cranes, construction elevators and tower cranes are the ones with higher profits. In particular, the penetration rate of the car cranes can account for more than 95%, and the overall leasing penetration rate of the construction machinery and equipment should not be less than 50%. Air compressors and generators have low leasing profits because they belong to small aircraft types in the field of engineering equipment, which is far less than the proportion of mainstream models such as excavators, loaders, and mobile cranes.
The change in the concept of equipment used by domestic construction companies has led to a gradual increase in the penetration rate of equipment leasing, which has also brought new market opportunities for the equipment leasing industry. The emergence of professional equipment leasing service providers provides construction companies with opportunities for selection. It also brings the possibility of integration between companies, allowing some scaled-up leasing companies to further grow rapidly through resource integration, and also allows the development of the leasing industry to face More opportunities.
Why do customers tend to choose to rent equipment instead of buying it themselves? From the perspective of operating lease, the leasing company corresponds to the user's purchase behavior. There are problems such as personnel input, material input, safety investment, installation risk and profit rate among the purchase and leasing, which need to be considered comprehensively. For customers who need to use equipment, leasing can easily simplify these problems and make them easier than direct purchase. With the intensification of competition in rental prices, more and more users will choose to lease equipment. This is also the reason why the Chinese leasing industry has flourished in recent years. It is also the reason why China's leasing penetration rate has rapidly increased.
Industry characteristics:
Focus on the development of "blue-chip" products construction industry, a good development trend, so that the social division of labor more detailed, which is more conducive to the formation of a professional construction machinery equipment rental market. China's current construction machinery leasing companies are characterized by small scale and large quantities. Of the approximately 100,000 construction machinery leasing companies in the country, the proportion of the construction machinery that has been established for 5 years is still less than 30%. The average turnover of all leasing companies is only about 3 million yuan, even more than 50 million yuan in assets, only about 10%.
Pangyuan Leasing is mainly engaged in the leasing of tower cranes and construction elevators. The qualifications of these two rental businesses need to be installed, so the threshold for the lease of these two models is relatively high. According to the win-win-win network statistics, in the industry, those who are engaged in leasing business, but also have such a lease installation qualifications, accounting for about 10.9%. However, according to the actual understanding of Pangyuan Leasing, this ratio is estimated to be only 2-3%.
According to the level of lease profit, Pangyuan Leasing divided the major rental aircraft into two large blocks, among which the high profit margins include crawler crane leasing, gantry crane leasing, bridge crane leasing, and 400 tons of meters. Above tower crane leasing business, medium and high speed construction ladder rental business. Low profit margins include concrete equipment leasing business, tower crane rental business below 40 tons of meters, and 40 to 400 tons of m tower crane leasing business and low-speed construction ladder leasing business. Among these major models, there is a distinction between high and low cash income. Like concrete equipment leasing business and tower crane rental business below 40 tons of meters, it belongs to low profit margin and low cash income. It has been listed as an exit equipment and gradually marginalized. The leasing business of 40 to 400 tons of m tower cranes and low-speed construction ladder leasing business is still the main source of revenue for the leasing business of Pangyuan, although its profit margin is low but its cash income is high. Crawler cranes, gantry cranes, and bridge crane leasing businesses have low cash income, but because of their high profitability, they will be used as blue-chip products, tower cranes with a capacity of 400 tons per meter or more, and high- and medium- The absolute advantage of high profit margins and high cash income has become a sharp knife product of Pangyuan Leasing, and has become the main business direction in the future.
The "surgery" level:
Seven aspects cast profitability Construction machinery leasing as a service industry can only rely on mutual growth with customers and “lock in the target†to achieve a win-win situation with customers in order to achieve their own long-term development. This requires leasing companies to continuously deepen their own Service content and improve service levels. Pangyuan Leasing's own exploration practices are: continuously exploring new vertical transportation technologies; continuously expanding and upgrading service teams to help construction companies continue to increase the scale of their businesses; continuously provide new vertical transportation lease operation services to construction companies; The products urge the construction companies to continuously improve their construction plans to serve the construction enterprises.
Through the provision of quality services to target customers, the profitability of leasing companies is constantly rising in the ever-expanding demand market that accompanies the growth of target customers. From the "skills" level, we must do the following seven aspects:
Strategic layout: By cutting into the market and reducing service radius to reduce costs and enhance competitiveness.
Scale procurement: Leasing companies can increase the negotiation bargaining power with manufacturers through large-scale procurement of equipment, and can also cause manufacturers to pay attention to leasing companies. This will greatly reduce equipment procurement costs and increase supply capacity for the market.
Management Improvement: After continuous optimization of the company's operations and service processes, and standardization of service operations, the brand's influence and market share of leasing companies will be increased.
Localization: Local protectionism may be a challenge for all industries. The local protection of leasing industry, especially the leasing of crane equipment, may be more serious. In response to local protection policies, it is an advantage to change disadvantages. The most effective way to obtain greater market share is to achieve a localized layout.
Emphasis on internal control: There is no system, no regulation, simply cannot talk about the maximization of the benefits of the enterprise, only the law-abiding enterprises will win the respect of customers and society.
Financing capacity: The power of capital will allow the leasing industry to plug in wings, which is the most fundamental reason why Pangyuan Leasing has exceeded the 1,000-fold growth rate in 13 years.
Core Competencies: Each leasing company can only sustain its own sustainable development by forging its own core competitiveness.
The "Tao" level:
Building the common values ​​of the leasing industry When it comes to hearing the leasing industry peers in the western developed countries saying that the Chinese leasing industry is lagging behind, they do not know what the domestic counterparts think, and presumably everyone is uncomfortable. However, we do face such a situation.
There are about 100,000 companies in the leasing industry, an average of 50 employees in each company, and 5 million in leasing in China. Some small companies may earn up to 1 million yuan each year through tax evasion, and as Pangyuan Leasing pays taxes honestly, no matter how good it is, there will only be more than 20 points of profit, so long as you don’t pay taxes, you can There are thirty points of profit. However, if you rely on irregular or even illegal behavior to make a profit, although you make money, you can only say that it is only a business and cannot become a business. Maybe more of our peers are really fighting for their livelihood. With the rapid growth of the Chinese economy in the decades to come, the leasing industry may have developed many rich people, but just cultivating some rich people is not enough for the industry and its industries. Gain respect. China's construction machinery leasing industry and practitioners must win the respect of the society, and they must strive to achieve the self-discipline of practitioners, the standardization of service processes, and the scaled development of leasing companies. It is necessary to create a number of platforms that together realize the ideal, and better serve the construction machinery industry and society as a whole.
In addition, to win social respect, our leasing industry must establish a dream, a sense of responsibility, and a sense of mission at the "Tao" level, and build the common beliefs and values ​​of the leasing industry so that we can continue to overcome difficulties. Since we have this dream, we must have enough norms, from the "skill" level to the "Tao" level. It can be more common sense of responsibility of the industry and rely on the strength of the market to promote the development of the industry.
The win-win-wins.com experts believe that although the developers of such thresholds are already bigger and stronger, they should also think that when setting the threshold, they may themselves be small self-employed ten years ago. Even if the industry really needs a threshold for entry, I think that this threshold must be a market and must not be a man-made coercive force. After 13 years of development and reflection, Pangyuan Leasing is deeply aware that if it is not to be rejected by the market, it must have a certain scale.
For all leasing companies, how to strengthen their core competitiveness is the key to improving profitability. Rather than fantasizing how to set the threshold. Only full market competition will lead to differentiation, and excellent leasing companies will also come to the fore.
Looking to the future:
It is self-evident that China's leasing companies will face the globalization trend of the construction machinery manufacturing industry in the world. The global manufacturing giants are competing to enter China and objectively contribute greatly to the improvement of the domestic manufacturing industry. Our domestic manufacturing companies are catching up with foreign brands. More than ten years ago we participated in the exhibition of construction machinery industry. At that time, we were ashamed of the gap between domestic brands and foreign brands. In recent years, we have quickly shortened the gap with world-class standards. Once I chatted with a foreign colleague. He said that the purpose of coming to China was to purchase equipment from China. He said that the cost-effectiveness of Chinese equipment is very high. A device with performance comparable to a world-class brand has a price that is only 60% of that of an international brand. This is undoubtedly attractive to all customers.
Our domestic manufacturing industry has also begun to acquire foreign companies. Although some tuition fees will be very expensive, since it is learning, tuition fees are unavoidable, and the domestic leasing industry is also the same. It should be said that we are more than happy with our foreign counterparts. They are very happy because, strictly speaking, we are not a single lease. To be precise, we are the provider of a complete set of solutions. Taking tower crane as an example, in addition to renting equipment, we also need to help the construction unit do pile foundation design, calculation of bearing platform steel reinforcement, force calculation of embedded parts, strength calculation of steel beam, etc. Chinese leasing companies have a living condition that is better than foreign counterparts. Far more complicated. Under the hammering of this industry survival rule, we can make our domestic leasing companies strengthen their bones, build their talent team strong enough to adapt to a variety of market requirements. We have also investigated some rental markets in Southeast Asia, the Middle East, and Australia. What our domestic leasing companies have to do is that they are all that construction companies should do. I think as long as we are used to doing more work, if the business expands to overseas Our happiness index will naturally become higher.
China's services will go abroad along with China's manufacturing. China's manufacturing industry has gradually been accepted by overseas markets through its own efforts, but the real power is not dependent on a single largest manufacturing company. An important criterion is that the service industry must be adequate. powerful. Our leasing industry practitioners all have this sense of responsibility and responsibility. We serve the people of the world with the diligence and wisdom of the Chinese people.
Industry opportunities:
More customers prefer to lease infrastructure investment will further stimulate the market demand for large and medium-sized aircraft models, especially for lifting equipment. Among all models participating in the construction machinery leasing business, the generators and air compressors are the ones with the lowest profits, and the truck cranes, construction elevators and tower cranes are the ones with higher profits. In particular, the penetration rate of the car cranes can account for more than 95%, and the overall leasing penetration rate of the construction machinery and equipment should not be less than 50%. Air compressors and generators have low leasing profits because they belong to small aircraft types in the field of engineering equipment, which is far less than the proportion of mainstream models such as excavators, loaders, and mobile cranes.
The change in the concept of equipment used by domestic construction companies has led to a gradual increase in the penetration rate of equipment leasing, which has also brought new market opportunities for the equipment leasing industry. The emergence of professional equipment leasing service providers provides construction companies with opportunities for selection. It also brings the possibility of integration between companies, allowing some scaled-up leasing companies to further grow rapidly through resource integration, and also allows the development of the leasing industry to face More opportunities.
Why do customers tend to choose to rent equipment instead of buying it themselves? From the perspective of operating lease, the leasing company corresponds to the user's purchase behavior. There are problems such as personnel input, material input, safety investment, installation risk and profit rate among the purchase and leasing, which need to be considered comprehensively. For customers who need to use equipment, leasing can easily simplify these problems and make them easier than direct purchase. With the intensification of competition in rental prices, more and more users will choose to lease equipment. This is also the reason why the Chinese leasing industry has flourished in recent years. It is also the reason why China's leasing penetration rate has rapidly increased.
Industry characteristics:
Focus on the development of "blue-chip" products construction industry, a good development trend, so that the social division of labor more detailed, which is more conducive to the formation of a professional construction machinery equipment rental market. China's current construction machinery leasing companies are characterized by small scale and large quantities. Of the approximately 100,000 construction machinery leasing companies in the country, the proportion of the construction machinery that has been established for 5 years is still less than 30%. The average turnover of all leasing companies is only about 3 million yuan, even more than 50 million yuan in assets, only about 10%.
Pangyuan Leasing is mainly engaged in the leasing of tower cranes and construction elevators. The qualifications of these two rental businesses need to be installed, so the threshold for the lease of these two models is relatively high. According to the win-win-win network statistics, in the industry, those who are engaged in leasing business, but also have such a lease installation qualifications, accounting for about 10.9%. However, according to the actual understanding of Pangyuan Leasing, this ratio is estimated to be only 2-3%.
According to the level of lease profit, Pangyuan Leasing divided the major rental aircraft into two large blocks, among which the high profit margins include crawler crane leasing, gantry crane leasing, bridge crane leasing, and 400 tons of meters. Above tower crane leasing business, medium and high speed construction ladder rental business. Low profit margins include concrete equipment leasing business, tower crane rental business below 40 tons of meters, and 40 to 400 tons of m tower crane leasing business and low-speed construction ladder leasing business. Among these major models, there is a distinction between high and low cash income. Like concrete equipment leasing business and tower crane rental business below 40 tons of meters, it belongs to low profit margin and low cash income. It has been listed as an exit equipment and gradually marginalized. The leasing business of 40 to 400 tons of m tower cranes and low-speed construction ladder leasing business is still the main source of revenue for the leasing business of Pangyuan, although its profit margin is low but its cash income is high. Crawler cranes, gantry cranes, and bridge crane leasing businesses have low cash income, but because of their high profitability, they will be used as blue-chip products, tower cranes with a capacity of 400 tons per meter or more, and high- and medium- The absolute advantage of high profit margins and high cash income has become a sharp knife product of Pangyuan Leasing, and has become the main business direction in the future.
The "surgery" level:
Seven aspects cast profitability Construction machinery leasing as a service industry can only rely on mutual growth with customers and “lock in the target†to achieve a win-win situation with customers in order to achieve their own long-term development. This requires leasing companies to continuously deepen their own Service content and improve service levels. Pangyuan Leasing's own exploration practices are: continuously exploring new vertical transportation technologies; continuously expanding and upgrading service teams to help construction companies continue to increase the scale of their businesses; continuously provide new vertical transportation lease operation services to construction companies; The products urge the construction companies to continuously improve their construction plans to serve the construction enterprises.
Through the provision of quality services to target customers, the profitability of leasing companies is constantly rising in the ever-expanding demand market that accompanies the growth of target customers. From the "skills" level, we must do the following seven aspects:
Strategic layout: By cutting into the market and reducing service radius to reduce costs and enhance competitiveness.
Scale procurement: Leasing companies can increase the negotiation bargaining power with manufacturers through large-scale procurement of equipment, and can also cause manufacturers to pay attention to leasing companies. This will greatly reduce equipment procurement costs and increase supply capacity for the market.
Management Improvement: After continuous optimization of the company's operations and service processes, and standardization of service operations, the brand's influence and market share of leasing companies will be increased.
Localization: Local protectionism may be a challenge for all industries. The local protection of leasing industry, especially the leasing of crane equipment, may be more serious. In response to local protection policies, it is an advantage to change disadvantages. The most effective way to obtain greater market share is to achieve a localized layout.
Emphasis on internal control: There is no system, no regulation, simply cannot talk about the maximization of the benefits of the enterprise, only the law-abiding enterprises will win the respect of customers and society.
Financing capacity: The power of capital will allow the leasing industry to plug in wings, which is the most fundamental reason why Pangyuan Leasing has exceeded the 1,000-fold growth rate in 13 years.
Core Competencies: Each leasing company can only sustain its own sustainable development by forging its own core competitiveness.
The "Tao" level:
Building the common values ​​of the leasing industry When it comes to hearing the leasing industry peers in the western developed countries saying that the Chinese leasing industry is lagging behind, they do not know what the domestic counterparts think, and presumably everyone is uncomfortable. However, we do face such a situation.
There are about 100,000 companies in the leasing industry, an average of 50 employees in each company, and 5 million in leasing in China. Some small companies may earn up to 1 million yuan each year through tax evasion, and as Pangyuan Leasing pays taxes honestly, no matter how good it is, there will only be more than 20 points of profit, so long as you don’t pay taxes, you can There are thirty points of profit. However, if you rely on irregular or even illegal behavior to make a profit, although you make money, you can only say that it is only a business and cannot become a business. Maybe more of our peers are really fighting for their livelihood. With the rapid growth of the Chinese economy in the decades to come, the leasing industry may have developed many rich people, but just cultivating some rich people is not enough for the industry and its industries. Gain respect. China's construction machinery leasing industry and practitioners must win the respect of the society, and they must strive to achieve the self-discipline of practitioners, the standardization of service processes, and the scaled development of leasing companies. It is necessary to create a number of platforms that together realize the ideal, and better serve the construction machinery industry and society as a whole.
In addition, to win social respect, our leasing industry must establish a dream, a sense of responsibility, and a sense of mission at the "Tao" level, and build the common beliefs and values ​​of the leasing industry so that we can continue to overcome difficulties. Since we have this dream, we must have enough norms, from the "skill" level to the "Tao" level. It can be more common sense of responsibility of the industry and rely on the strength of the market to promote the development of the industry.
The win-win-wins.com experts believe that although the developers of such thresholds are already bigger and stronger, they should also think that when setting the threshold, they may themselves be small self-employed ten years ago. Even if the industry really needs a threshold for entry, I think that this threshold must be a market and must not be a man-made coercive force. After 13 years of development and reflection, Pangyuan Leasing is deeply aware that if it is not to be rejected by the market, it must have a certain scale.
For all leasing companies, how to strengthen their core competitiveness is the key to improving profitability. Rather than fantasizing how to set the threshold. Only full market competition will lead to differentiation, and excellent leasing companies will also come to the fore.
Looking to the future:
It is self-evident that China's leasing companies will face the globalization trend of the construction machinery manufacturing industry in the world. The global manufacturing giants are competing to enter China and objectively contribute greatly to the improvement of the domestic manufacturing industry. Our domestic manufacturing companies are catching up with foreign brands. More than ten years ago we participated in the exhibition of construction machinery industry. At that time, we were ashamed of the gap between domestic brands and foreign brands. In recent years, we have quickly shortened the gap with world-class standards. Once I chatted with a foreign colleague. He said that the purpose of coming to China was to purchase equipment from China. He said that the cost-effectiveness of Chinese equipment is very high. A device with performance comparable to a world-class brand has a price that is only 60% of that of an international brand. This is undoubtedly attractive to all customers.
Our domestic manufacturing industry has also begun to acquire foreign companies. Although some tuition fees will be very expensive, since it is learning, tuition fees are unavoidable, and the domestic leasing industry is also the same. It should be said that we are more than happy with our foreign counterparts. They are very happy because, strictly speaking, we are not a single lease. To be precise, we are the provider of a complete set of solutions. Taking tower crane as an example, in addition to renting equipment, we also need to help the construction unit do pile foundation design, calculation of bearing platform steel reinforcement, force calculation of embedded parts, strength calculation of steel beam, etc. Chinese leasing companies have a living condition that is better than foreign counterparts. Far more complicated. Under the hammering of this industry survival rule, we can make our domestic leasing companies strengthen their bones, build their talent team strong enough to adapt to a variety of market requirements. We have also investigated some rental markets in Southeast Asia, the Middle East, and Australia. What our domestic leasing companies have to do is that they are all that construction companies should do. I think as long as we are used to doing more work, if the business expands to overseas Our happiness index will naturally become higher.
China's services will go abroad along with China's manufacturing. China's manufacturing industry has gradually been accepted by overseas markets through its own efforts, but the real power is not dependent on a single largest manufacturing company. An important criterion is that the service industry must be adequate. powerful. Our leasing industry practitioners all have this sense of responsibility and responsibility. We serve the people of the world with the diligence and wisdom of the Chinese people.
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