Rental companies grow in participation in the purchase of machines

Sector on the rise will have the 1st Analoc Rental Show 2023, in Curitiba, a fair supported by M&T EXPO and fully focused on business for machine rentals

The construction equipment rental market has shown exponential growth in Brazil, changing the sales flow of machine manufacturers. If before, the large volume sold by the industry was directed to builders, contractors and other companies in the construction industry, today around 90 to 95% of some types of equipment are acquired by rental companies.

The data were collected by Sobratema (Brazilian Association of Technology for Construction and Mining), in partnership with Analoc (Brazilian Association of Trade Unions and Representative Associations of Equipment, Machinery and Tools Lessors). According to Eurimilson Daniel, vice-president of both entities, rental companies are responsible for purchasing 90 to 95% of cranes, hoists and aerial work platforms; from 70 to 80% of lighting towers; 65 to 75% of concrete mixers and 55 to 60% of generators.

“As we can see, some lines of heavy, medium, compact, light and manual machines have high percentages sold together with rental companies”, points out Daniel. With regard to earthmoving equipment – known as the yellow line – sales for rental jumped from 20% to 30%. However, according to a survey presented by Daniel, where several businessmen from the construction sector were heard, the perspective is that rental is the market segment that leads purchases of yellow line machines in 2023 in Brazil.

“In European countries, the United States and Japan, for example, around 60% of yellow line equipment sales are destined to rental companies. Over the years, Brazil has moved in this direction”, explains Daniel. According to him, rental always has good growth prospects, because it has not yet reached a degree of maturity that stable economies have reached. That is, it has not yet managed to contribute in all areas in the same proportion.

Why do companies seek rental?

Several factors explain this increase in demand for rentals, such as the search for greater operational efficiency, cost reduction and flexibility in construction operations. People came to understand that rental meets the specific needs of each work, offering complete solutions, and especially that builders, concessionaires and public bodies do not need to commit capital to machine financing, but to the engineering projects they carry out.

Figures obtained by Analoc from the Federal Revenue show that the rental sector has approximately 40,100 companies in Brazil, which move R$ 28 billion in business. “The increase in the number of rental companies is recurrent, what changes is the intensity”, observes the president of Analoc, José Antônio Miranda. “In more than 80%, the sector is formed by micro and small companies, and individual microentrepreneurs (MEI). When the market is more buying, more companies emerge, that is, everything is interconnected to the success of the economy”, he says.

Miranda notes that there currently isn’t much room for companies that rent out old or poorly maintained equipment. The customer itself excludes this supplier from its contracts, especially in large centers or important works, hence the need to have a fleet in good operating conditions and have a good management model, in order to be a competitive rental company.

Fair aimed exclusively at the renter

Faced with this new scenario, the need arose to hold a business fair focused on equipment renters, with an appropriate commercial bias. The 1st Analoc Rental Show will take place from July 12th to 14th, at Centro de Eventos Positivo, in Curitiba (PR), with the purpose of promoting a true mega-meeting with an equipment exhibition and congress, where renters from all over Brazil will be able to face face-to-face with manufacturers, networking with contracting companies and keeping up-to-date with the main topics in your market.

The event has the support and partnership of M&T EXPO. In parallel to the fair, the 9th National Congress of Rental Valuation and the 4th Renters BR Meeting take place, two important conferences in the calendar of attractions. In this way, Analoc Rental Show will move the entire ecosystem of the lessor, in an environment where it will be possible to strengthen relationships, generate business, learn about technologies, obtain special purchase conditions, in addition to participating in free lectures.

The 9th National Congress on Rental Valuation, for example, will have an audience of people with a decision-making profile, interested in business updating, closer relationships and interactivity with other companies in the market.
The 4th Renters BR Meeting will promote interactivity between the participating public, speakers, generation of ideas, networking and will focus on the interests of equipment renters.

“The Locadores BR group always has the purpose of disseminating quality information. The congress will be an opportunity to connect the interests of the landlord with the source of information, providing a complete debate experience”, informs Douglas Pereira, organizer of the group.

Click here to access the registration form and see the wide range of conference talks. Registration is free.

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By: Santelmo Camilo