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‘Renting equipment involves no capex’

By | November 5, 2018 6:59 am SHARE

‘Renting equipment involves no capex’
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There are many factors for the user to consider with respect to the type of machines required on rent. Factors like project duration, type of ground conditions and erection plan decide whether crawler cranes are required or mobile cranes.
For example, it is preferable to use mobile cranes for metro jobs in the city due to space constraint and mobility on the roads is not viable for crawler cranes. As for boomlifts, a client can prefer truck-mounted boomlift for metro jobs and self-propelled machines for PEB works and mix of both can be used for power projects, refineries and cement plants.

Renting a machine is better for the end user and there is no capital expenditure (capex) involved. The end user does not need to look after the maintenance of the machine nor the HR problems related to operator.

Also, if the client feels he wants higher capacity or lower capacity machine, he can easily switch the machine thereby increasing efficiency and productivity.
Challenges for renting industry
Rental rates are a major challenge faced by the industry. Even though there are good numbers of infrastructure projects coming up. The rental rates are quite low.

Depreciation of the rupee has increased the purchase price of equipment. Majority of cranes and boomlifts are imported and currency fluctuations are a worry for the industry. Shortage of skilled manpower is causing lots of accidents which in turn converts to loss of rental income as well as damage to machinery and loss of production to the end user.

Authored by
Kunal Gala,
Director,
JNK Lifters Pvt Ltd

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