Leasing 4 billion yuan for construction machinery and equipment

Wuhan's construction leasing market has been monopolized by businessmen from Zhejiang, Fujian, and Hebei. Yesterday, the Wuhan Construction Equipment Rental Association was listed at Hongshan. The construction machinery equipment leasing industry is known as a super “sunrise industry” in developed countries. It is understood that at present, there are about 800 construction equipment rental companies in Wuhan, and the annual turnover exceeds 4 billion.

From 200,000 "rolling" to 10 million yuan Wuhan construction equipment leasing began in the 90s of last century, starting from individual industrial and commercial households. The leasing machinery mainly includes steel pipe scaffolding, tower cranes, concrete equipment and mobile cranes.

In 2004, Chen Min (a pseudonym) with a flexible mind found that as the number of urban construction projects increased, the demand for construction equipment increased. However, it is impossible for building owners or building companies to prepare all construction equipment such as mixers, electric cookers, steel pallets, and building supports.

Chen Min, who is good at finding business opportunities, immediately registered a building materials leasing department in the industry and commerce department and specialized in the leasing of steel pipe fasteners. The initial capital investment is more than RMB 200,000, and 100 tons of steel pipe materials are purchased back. “At the time, the industry was only started, and my leasing department was one of me. I was both a boss and an employee.” Chen Min said that because of the start of the business, when he went out to talk business, he often used public transportation to save a dollar. Fare, and walking 78 stops.

But this is not the main difficulty. Because of his small size, Chen Min can only hope to sigh in the face of relatively large projects. “After all, the staff and materials are not enough.” To make a business must be “clustered”, Chen Min started to partner with other colleagues in the industry if A project needs 300 tons of steel pipe materials, two or three people together took the project together, and the rich have to earn together, and thus spent the initial stage of “touching the stones”.

"Because the equipment has been leased out, most of the time it has revenue. In two years, it has recovered the first phase of the cost." Chen Min said that in order to make the business bigger, he will take a "snowball" approach and will immediately earn Money to buy new equipment materials. Through the construction of the package design package, it not only earns rental fees, but also earns labor costs.

Hankou Railway Station Expansion, Qintai Theatre, Yellow Crane Tower Transformation, Yangtze River Third Bridge, and Revolution Museum... Slowly, more and more engineering projects have been received, and Chen Min’s assets have snowballed. From the initial 200,000 yuan, after six or seven years of development, it has exceeded 10 million yuan.

With an annual turnover of more than 4 billion yuan, there will be scaffolding erection of this project for the construction of the building. Previously, bamboo rafts and small wooden planks were used as scaffolding to erect materials, which are not stable and have no safety. This inspired the idea of ​​builders and renters. The lease of construction equipment includes the rental of materials such as tower cranes, jacks, bowls, and buckles, as well as the erection of scaffolding. It is stable and safe to use.

"The cost of construction machinery is relatively high. For example, the price of a tower crane is as high as more than 400,000 yuan. Procurement funds have become a major bottleneck for the development of leasing companies." Hu Maohou, chairman of the Wuhan Construction Equipment Rental Chamber of Commerce, said that although Wuhan has a lot of construction units, However, there are still a lot of construction companies lack of liquidity, lack of mechanical maintenance professionals, there is no fixed site for storage of construction machinery, so there are more and more construction parties to replace the direct purchase of mechanical leasing.

According to statistics, in Wuhan, construction equipment rental companies such as Chen Min, whose assets amount to 10 million, are not large. “In the industry, there are 20% to 30 million leased companies with assets of 70%, mostly people from Zhejiang, Fujian, and Hebei. There are also 3 or 4 construction machinery equipment leasing companies with assets of over 100 million yuan.

According to industry sources, in the machinery leasing industry, part of it is a professional leasing company that has been separated from the construction companies. Its equipment and technical strength are relatively strong; some are leasing companies that run concurrently by agents. Its marketing network is developed, but the number of equipment is relatively high. Less; there is also a part of the development of leasing companies that naturally develop in response to market demand. Its technical strength is strong and the types of equipment are abundant, but the funds are insufficient.

The reporter learned from a survey of the types of future equipment purchased by leasing companies that tower crane equipment ranks first in absolute advantage, accounting for 36.2%; second and third are construction elevators and automobile cranes; road machinery, concrete machinery, etc. The proportion of equipment procurement is low.

Hu Maohou mentioned that at present, there are about 800 construction equipment rental companies in Wuhan, which are mainly located near the Third Ring Road. The annual turnover exceeds 4 billion yuan, and the normal profit rate has reached 22%-30%, which has already formed a large scale. Development group.

The three major problems of security, rent collection, and theft have plagued the leasing company's machinery leasing inevitably involving security issues. Whoever is responsible for the accident?

"The two sides should clarify their responsibilities. If the accident is caused by the illegal operation of construction workers, it is generally the construction party's responsibility; if there is a problem with the mechanical performance, the responsibility of the accident shall be borne by the leasing company." Chen Min said that the industry generally follows the rules of the contract. of. However, the equipment leasing company generally subcontracts part of the project from the total construction company, and the leasing company may in turn subcontract the project, so that once a safety accident occurs, the small contractor may not be able to bear the corresponding compensation. The rights of the injured cannot be guaranteed in the end.

In addition to security issues, rent collection is also a hidden concern for leasing companies.

"'Leasing is difficult to collect rent', the leasing company is best to write a lease period in the contract." Reporter learned that some construction units deliberately defaulted on rent, even worse, through the transfer of equipment maliciously seize the leased property, resulting in leasing companies Falling into protracted legal disputes consumes a lot of manpower and material resources. Even if they win the case in the end, it will be difficult to recover the losses.

Last May, Chen Min leased 80 tons of steel pipes to a client in Qingshan District. “The other party paid a deposit and was guaranteed by someone. I also verified the other’s ID card, investigated the site, and both parties signed a contract. He was cheated.” Chen Min said that the other party actually only needs 40 tons of equipment and materials, but rented 80 tons. In the middle, the remaining 40 tons of malice was sold, causing him to lose more than 200,000 yuan. "People ran away and couldn't afford the energy to go to court. They had to think of themselves as unlucky." Chen Min still posted the contract in his office as a lesson. He said that as long as he is still engaged in this industry, he will always keep The contract is preserved, "as a kind of wealth, to avoid future losses."

“Under normal circumstances, the collection rate of the year can reach 70%, but last year affected by the downturn in the real estate market, only 40% of the money back, the outside of the arrears of 800 million.” Another owner engaged in construction equipment leasing told reporters.

In addition, theft prevention at the site is also a problem for rental companies. "A two-year site near Wuchang Horse Racecourse, I lost nearly 100 tons of steel pipes, 30,000 sets of fasteners, and discounted about 500,000 yuan. Some workers or outsiders are taking ants to move their houses. Stealing sells, and I have spent sixty thousand yuan for six people to see the field, the result is still not ideal.” The boss said above.