Capital Equipment News February 2023

LEASE EQUIPMENT

of the full range of backup and technical support service we can offer.” Shumani has a full complement of technicians, most based at client sites. These technicians provide maintenance on customer equipment, ensuring that Shumani delivers a guaranteed uptime when forklifts are ordered through the maintenance lease agreement. What leases entail In their simplest form, Shumani’s lease agreements allow customers to receive preferred equipment on a long-term rental basis, and during that time the equipment has a full maintenance plan. “We provide them with full management of their units and give them reports on performance customised to their requirement. These types of agreements give customer peace of mind,” says Nemukula. According to the MD, big role players usually want Shumani to provide equipment and ensure that uptime is kept high. “We also give them an uninterrupted service, so they concentrate on production without being worried about the piece of equipment. They also don’t want to commit a big portion of their budget to buy equipment so lease the equipment with full maintenance,” he says. Virtually all equipment in the Shumani fleet is available on this agreement, and it is the biggest part of Shumani’s business. Importantly Shumani allows lease buyers to have contact with their service department, to ensure machines are always up and running. “As Shumani has grown over the years to be a large organisation, we’ve set up a call centre to give our customers a seamless service,” says Nemukula. Expanding business Shumani ended 2022 by successfully expanding into the supply of port-handling equipment such as reach stackers and empty container handlers. These are available on either a long, short term or outright purchase basis. Long-term rental is mostly over 60 months and fits in with their established business of leasing equipment. Having supplied this equipment to Transnet Freight Rail and Transnet Port Operations on a short-term rental basis, Shumani decided to supply customers directly, especially as it owned the assets itself. b

An example of the 45t Reach Stacker available from Shumani Industrial Equipment.

Doosan is still one of the preferred diesel equipment that is offered with full maintenance lease agreements through Shumani.

two-hour response time on a 24/7 basis. Equipment can function with a 98% uptime due to the maintenance of equipment factored into the lease agreement. When measured against ownership one of the main reasons a lease is a better option is that it can free up capital to focus on operation, according to Nemukula. Uptake on electrical equipment At Shumani there’s still a preference for diesel equipment, and diesel-powered equipment is the most popular in the market in terms of overall volume sold. However, according to Nemukala, there’s a shift in preferring alternatively powered equipment in specific sectors, like materials handling. “Load shedding is having a huge impact on the total uptake of equipment in general. Companies are spending their capital budget on solar technology to minimise the impact of power cuts

on their production. Electric forklifts are still popular as the technology improves,” says Nemukala. Materials handling is the backbone of the South African economy and an integral part of the logistics industry. “The growth in demand for electric forklifts, as well as the uptick in the economy, are drivers of the forklift market,” says Nemukula. “The future of the forklift industry is electric. We are already seeing a gradual move away from internal combustion engines. Over time, only electric forklifts will operate across the breadth of the economy,” Nemukula mentions. Over their lifespan, these forklifts are more cost-effective to operate. “Shumani’s focus is on improving customer satisfaction using available technology,” adds Nemukula. “Key customers continue to be an important focus as they invariably have long-term contracts that take advantage

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