The special equipment rental service Perevozka 24 announced a new acquisition. It became the Raise.ru trading platform, dedicated to trucks and special vehicles. This merger will allow buyers to immediately enter the rental market.
Until 2002, rental of special equipment in Russia was poorly ordered. An example here were the markets of the USA and Western Europe. By 2014, the situation changed dramatically, as construction developed at an active pace. Developers had to attract more technology. Annual rental growth reached 25%. The changed customs taxation procedure and the economic situation have led many companies to refuse to purchase new equipment, preferring to rent it or buy used equipment.
Increased demand has led to increased competition and lower rental prices. By 2015, many companies had to leave the market. Previously, the new equipment fully paid off after a maximum of two years of operation. Now, the increased cost of cars and the inability to significantly increase rental prices do not allow regularly updating equipment.
Service Specialists ”They say about a certain improvement in the situation on the rental market of equipment in the period from the end of 2016 to the beginning of 2017. Landlord rates showed a slight upward trend. The reason was a slightly increased demand and competition among small enterprises. More than 70% of contractors prefer the rental of special equipment, rather than its purchase. This may 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 also took the same path. The main reason for this trend is the economical use of funds. The content of special equipment is too expensive, not to mention its complete update. Even if the rental price rises, the purchase will still remain a less profitable option.
Throughout 2016, the rental price did not change. It increased only in the fall, by 5%. Rent growth in 2017 will amount to 10%. Narrow application equipment such as vacuum cleaners or water carriers are in great demand. Such equipment is at the disposal of large companies, and it costs more than the rest.
Experts at Freedonia Group, an international analytical company, predict a major leap in the development of the mining and construction industries. This may provoke an increased demand for rental of frontal loaders, as well as excavators and other special equipment. Merger and “Transportation 24” will become especially beneficial in light of the possible stabilization of the market.