Capital Equipment News March 2018

EQUIPMENT HIRE

There is continued demand for larger

capacity cranes, and to stay abreast of this trend, Johnson Carne Hire continues to invest in larger lift capacity, such as its new LTR 11 200 crawler crane, to be able to meet the needs of the market.

Changing face of the rental market

The African capital equipment rental market has evolved in many aspects over the past decade, and like many other business sectors, non-adapting companies have either closed their doors or are just finding it tough to survive. However, those that embraced new realities – such as the changing clientele, shifting customer needs, change in applications and the arrival of sophisticated equipment – continue to swell their stables, writes Munesu Shoko .

T he state of the recipient sectors has a direct bearing on the health of the capital equipment supply chain. Subdued construction and mining markets translate into depressed machinery sales. However, the demise of the cyclical construction and mining industries is a significant factor that spurs the growth of the equipment hire market. For example, in recent years there has been a decline in the building and infrastructure sector, and with contractors now conscious of the need to contain costs to survive the tide of a downward economic cycle character-

ised by few and far between contracts, rental has become an attractive option. Construction and Mining Equipment Suppliers’ Association (CONMESA) figures reflect that the plant hire sector continues to grow as the culture of rental entrenches itself in the South African equipment community. The sector took delivery of 1 083 units back in 2005, representing 22,8% of the 4 754 total unit sales that year. The plant hire sector’s spending power grew to 1 980 units in 2013, representing 30,5% of the 6 497 units sold during the particular year.

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