Tan Chinese crane rental market situation

Domestic crane rental business after several years of rapid development of the national economy, state-owned subsidiaries from five years ago, a crane rental company dominate the world, the evolution of what is now private and state-owned rival, mainly due to the more open  overhead bridge crane  sales up to solve the private financing difficulties, coupled with private enterprises in the decision-making speed and operational flexibility, making the emergence of private enterprises in the crane industry, the Great Leap Forward-style growth. In this context, the domestic crane manufacturing enterprise scale, due to follow the market, there have been extraordinary development.

Beginning last year, but with the domestic economic growth rate to stabilize or even decline, finally appeared crane rental market oversupply, rental prices began to decline, and their utilization rate also decreased rapidly, coupled with the rising cost of the domestic variety, especially labor costs rise, the market has a large amount of small  hoist crane , ROI began to rapidly decrease, some operators have begun to appear bad loss, making the driving force behind the development of leasing companies have lost the source, but also to continue the rapid development of manufacturing enterprises no basis, manufacturing companies also benefit from the development to the pursuit of scale to quality development.

Crane is a universal lifting machinery, due to structural wear low, state-owned enterprises will generally be set at a large crane depreciation 14 years, the other for 10 years. However, the current lease with the actual conditions of use, the general life of 20-30 years, this feature makes the crane rental market for more than after a substantial decline in return on assets leasing companies, manufacturers sales may decline substantially, the entire industry will present vicious competition. At present, the domestic leasing market is in this situation.

As previously described one conclusion: China's crane rental market since last year has ended a period of rapid growth, and leasing companies have entered into a vicious competition period, just over two years, the overall decline in rental prices 30-50 %, cranes payback period from 4-6 years, dropped to 6-10 years. Manufacturing companies also quickly dropped from the peak of development, although some factory sales value of these two years is relatively stable, but the gross margin decline. Part of the manufacturer's sales began to fall sharply. If allowed this trend continues,jib crane China crane rental market woeful.