 Craig Paylor |
Ex-JLG president Craig Paylor has urged rental companies to exploit the full economic life of their machines and warned the industry to prepare for some major challenges in his keynote address at the Europlatform conference.
The conference, organised by
Access International and the International Powered Access Federation (IPAF) on 16 September in Madrid, Spain, attracted over 145 delegates, the largest attendance in the event's history.
Paylor acknowledged manufacturers had overproduced machines in the pre-global recession years. "We've got to get over the greed. Manufacturers made too much and distribution bought too much."
He argued that rental companies should resist underselling machines and consider returning to a rental model where machines are kept for longer periods. "I guarantee that you will double your return if you keep it for parts and use it for your fleet. Don't be in a hurry to run out and sell it."
Conference speaker Carlos Fernández Araoz, who is CEO of Spanish rental company GAM, advised rental companies to look outside their home markets and exploit opportunities in developing areas.
He also said access platform rental companies should move towards a thrifty rental culture with lower overheads. "I believe that the aerial business needs to do this. It has been operating in the past in a period of abundance."
Another speaker, Nick Mavrick of Volvo Rentals, said companies should target their marketing and customer service at the "best of the best". "There is the idea that if you make an exception for one customer, then you have to make an exception for all customers. It is not true."
George Marriott of Access Plus, a small access rental company in the UK, explained he has adopted best practices from market leaders in other industries to create a rental model that had dramatically improved efficiency in the business. Hand-held computers used by sales staff, drivers and mechanics had improved delivery times, the speed of pre-delivery inspections and reduced response times for service callouts.
Asif Latief, marketing director at A-Plant, described how developing a special rental application for iPhones had allowed sales staff to quote on the road using the latest pricing information. He said that contracts sealed using iPhones were on average 6% higher than other contracts.
Other speakers included Oliver Sven Dahms of PartnerLift in Germany and Malcolm Bowers, representing the UK's Access Link, who described the benefits to smaller rental companies of forming re-rental alliances to offer a nationwide service and win business with large contractors.
Murray Pollock, managing editor of Access International, gave a short report on the current rental market worldwide. He said the consensus was that North American and European access rental markets would recover slowly, with significant investment to grow fleets unlikely before 2012.
The main theme of the conference was "Renting Smart: Efficient Fleet Management". The next Europlatform conference will be held on 13 September 2011 in Maastricht, the Netherlands.
IPAF is a not-for-profit organisation promoting the safe use of powered access equipment including telehandlers.