Capital Equipment News March 2022

PLANT HIRE

Uncertain economic environment Uncertainty in the macro-economic environment and commodity pricing affects demand for plant hire, says Rahim. “These uncertain times are causing bottlenecks in OEMs’ ability to deliver equipment. Potentially significant increases in local interest rates, the possibility of a weaker rand and the existing reality of increased fuel prices will make machines more expensive to import and operate,” she says. Faig adds that when productivity in the construction industry is high and heavy equipment supply chains are restrained, both rental demand and used equipment demand are strong. “One indicator is the bidder attendance at Ritchie Bros. auctions and price performance on key equipment categories. Typical rental machines sold at Ritchie Bros. can see an up to 30% price increase due to intensified bidding activity. While those looking to sell have the wind in their sails, we are also seeing more buying activity from rental businesses.” He says that even rental businesses who normally might not consider buying used machinery are now looking through Ritchie Bros.’ inventories for low-hour, quality used machines. The future On the future of the plant hire industry around the world, Rahim says plant hire has been around for a long time and will continue to do so. “We think there will be some interesting innovation when it comes to marketplaces for plant hire service providers and customers to come together, as well as opportunities for traditional plant hire companies to develop their business models into fintech-type businesses.” According to Faig, the industry’s digitalization has accelerated in the last two confident buying, managing and selling heavy equipment through online channels. Auctions are a part of that too.” He says the company’s online timed auctions, for example, have seen “massive growth over the last years”, with more buyers and sellers joining from South Africa. “We have a great team available to help rental businesses figure out the optimal disposition strategy, but the starting point of our conversations with customers is broader than auctions alone. First, we listen and understand the business on a deeper level. From there, we can offer insights, services and transaction solutions,” he says. b years and will continue to do so. “Businesses now are much more

When productivity in the construction industry is high and heavy equipment supply chains are restrained, both rental demand and used equipment demand are strong.

Plant hire can be an effective stop gap between time of delivery of new equipment and work commitments that need to be carried out.

“While those looking to sell have the wind in their sails, we are also seeing more buying activity from rental businesses.”

Eduard Faig, regional sales manager at Ritchie Bros.

“Uncertainty in the macro-economic environment and commodity pricing affect demand for plant hire.”

Sumaya Rahim, business manager, Rentworks Africa

TALKING POINTS

CAPITAL EQUIPMENT NEWS MARCH 2022 28