As an important downstream sector of the construction machinery industry, the construction machinery rental market is the main target for the sales of most products. The problems and development level of the construction machinery rental market affect the development of the construction machinery industry. In previous years, the rapid development of China's construction machinery industry also deeply influenced the process of the construction machinery rental market. But it is undeniable that the benefits of high-speed growth are short-lived. Facing the sluggish upstream construction machinery industry, the construction machinery rental market has gradually exposed many hidden problems. Where is the road for China's construction machinery rental market? What changes will occur in the future? This article provides a comprehensive analysis of China's construction machinery rental industry and market.

Preface
At present, the international sales of construction machinery to rental companies have reached more than 25% of the total mechanical output value. In the rental markets of developed countries in Europe and America, construction machinery accounts for about 85% of the total machinery, while the domestic figure is less than 20%. On the one hand, it is a fluctuating development; on the other hand, it is a growth space that can theoretically come at any time. China's construction machinery rental market is like a tired calf. Construction machinery rental related research reports: 2014-2018 Construction Machinery Rental Market Competition Pattern and Investment Strategy Research Consulting Report; 2014-2018 Construction Machinery Rental Market Investment Opportunities and Enterprise IPO Listing Environment Comprehensive Assessment; January 2014; 2014-2018 Construction Machinery Rental Industry In-depth Analysis and "Twelfth Five-Year" Development Plan Guidance; 2013-2017 Construction Machinery Rental Industry Government Strategic Management and Regional Development Strategy Research Consulting 123

One High and One Low, Still in the Initial Stage
Domestic construction machinery rental enterprises have a short development history of only about 20 years, but the development speed is amazing, generally showing cyclical changes. In the 1990s, most construction enterprises relied on their own equipment to complete construction projects, and there were few construction machinery rental enterprises in society. Although the vast majority of construction enterprises had huge mechanical construction teams, they did not engage in equipment rental business even if they did not win bids. Enterprises that won large projects could not meet their needs with their own construction equipment for various reasons, so a large number of individual lessors represented by individual rental households emerged. From 2000 to 2010, these individual lessors went through a glorious decade with the prosperity of China's highway construction market. Especially in 2010, affected by the national 4 trillion yuan investment, the construction machinery rental market was seriously in short supply, and the individual rental market reached its peak. It also ushered in the first full-scale development heyday.
However, in 2011, with the end of the 4 trillion yuan investment, by August 2014, China's construction machinery rental market declined rapidly, and the rental market hit freezing point, beginning a adjustment in the trough. The industry presented a series of adjustments from product procurement to engineering competition. But compared with the two peaks and two troughs experienced by construction machinery, China's construction machinery rental market is clearly in its infancy, and the former prosperity and trough are merely normal rhythms of development fluctuations.

Many Problems in the Current Market
China's construction machinery rental market is generally centered on Xuzhou, showing an irregular distribution of variation ranges nationwide. China's economy is in a stage of rapid development. The present of Europe and America is the future of our country. From this perspective, China's domestic construction machinery rental market has just started and breeds huge development space. Because the next few years will still be a stage of rapid development for China's construction machinery rental market. There are mainly two types of construction machinery rental: physical leasing and financial leasing. At present, China's construction machinery rental market is roughly composed of the following parts: individual lessors, larger private rental companies, equipment management centers established by construction units, and large-scale professional rental companies.
Individual lessors: Individual lessors have the largest number and the largest total amount of equipment. Individual lessors have their advantages: flexible rental pricing, no approval procedures required to purchase scarce equipment in the market, and strong competitiveness in the rental market due to their flexibility. However, individual lessors also have their disadvantages: lack of excellent operators and maintenance personnel; due to the mobility of operators and maintenance personnel, their ability to control on-site service personnel is weak, and it is difficult to form a formal and complete sales service network. They can only operate individually, and after-sales service capabilities are not guaranteed.
Larger private rental companies: With the rapid growth of China's high-speed construction, some individual lessors have grown into larger-scale rental companies. Some of these private rental companies have begun to take shape, and some even have equipment assets of hundreds of millions, exerting some influence in the rental market. Their advantages are: they have a certain scale of operators and maintenance service personnel, relatively strong service capabilities for rented equipment, and have formed their own sales networks. However, these enterprises have too strong a shadow of family management and lack high-quality management talents and high-level engineering technical personnel for construction consulting, which will seriously restrict the further development of these private rental companies.
Larger-scale rental enterprises: These are divided into three parts: First, equipment rental companies established by large construction enterprises. From 2000 to 2010, the prosperity of the rental market and the high returns of the rental market led many construction enterprises with huge equipment assets to enter the equipment rental market, using their idle equipment to create some value, revitalize assets, and increase additional operating income. Second, rental companies established by construction machinery manufacturers; third, large enterprises originally engaged in financial leasing turned to physical leasing. The advantages of such rental companies are: they have high-quality management talents and operators and maintenance service personnel, strong service support capabilities for rented equipment, and can even provide customers with turnkey solutions for construction. But these companies also have their own disadvantages: rigid pricing systems, requiring layer-by-layer approval when scarce equipment is needed in the market, that is, slow market response and insufficient scale. Although they have some market influence, they lack the ability to control the market.
From the composition of the rental market, it can be seen that although the construction machinery rental industry has made considerable progress in recent years, it is still in the initial stage of development. The construction machinery rental market is not yet perfect, lacking industry standards, with an unsound credit system, disorderly market competition, and no leading enterprises. Enterprises lack market credibility, development funds, and policy support, and the industry market urgently needs regulatory policies. Despite numerous obstacles, the market prospects remain promising.
With the reduction of projects and the impact of the overall environment, especially the rise in crude oil prices and labor costs, the cost of construction machinery equipment rental in China will also rise significantly. Industry competition will continue to intensify, and disorderly market competition will lead to concentrated price wars among enterprises, with business volume declining to a greater extent and profitability dropping significantly. It can be foreseen that the trough of China's construction machinery rental will continue for some time.

Comparison with Mature Stages, Seeking Breakthroughs
At present, the international sales of construction machinery to rental companies have reached more than 25% of the total mechanical output value. In the rental markets of developed countries in Europe and America, construction machinery accounts for about 85% of the total machinery, while the domestic figure is less than 20%. Many initial-stage problems experienced by China's construction machinery rental market can find similar answers in overseas rental markets.
At present, in the rental markets of developed countries in Europe and America, construction machinery accounts for about 85% of the total machinery. Just from this figure, the popularity of the construction machinery rental market in developed countries can be seen. In Europe, construction enterprises rent construction machinery from rental companies in two ways: short-term use is rental with operator and machine; for long-term rental, equipment can be rented alone with the customer providing the operator. There are also simple rental and full-package rental. Simple rental means the rental company provides whatever construction machinery the customer needs. This type of rental is similar to the equipment rental provided by individual lessors in China's rental market. Full-package rental means the rental company provides customers with full-process services for mechanical construction, including optimal selection consulting for rental plans, rental use and maintenance services, and completion data organization services.
The Japan Construction Machinery Rental Association, integrating the business strategies of various rental companies, proposed the industry business goal of "creating a trustworthy rental industry with excellent management and high-tech systems." The advertising slogan of the rental company under Caterpillar Inc. in the United States, "Today, you can conveniently rent the equipment you need at any Caterpillar rental location," reflects Caterpillar's business strategy of providing customers with high-quality, low-cost rental machinery quickly and conveniently. The difference from China's construction machinery rental market can be seen from the business strategies.