IRC: Chinese perspective

By Helen Wright13 October 2016

There are several strands to the ‘growth story’ of China’s equipment rental market, and speakers at this year’s IRC conference will include China-based rental managers who will explore these different aspects of the market.

For example, the bahaviour of China’s large state owned contractors will be scrutinised by Fei Xiaodong, the Vice General Manager and Sales and Operations Director at Jiangsu Xugong Guanglian Machinery Rental Co. Ltd, a general construction and roadbuilding equipment rental business that is part of the XCMG group.

Mr Xiaodong will look at how these major contractors are starting to look at rental as a cost-saving option in the face of slower demand and also in response to changes in the way that they are run.

In the past, major contractors were judged, in part, on the size of the equipment fleets that they help – with the fleet being an indicator of status and success. But with China’s construction market slowdown, and with contractors having to cut costs and demonstrate efficient operation, rental is starting to be seen as a useful tool.

Of course, another of the key trends of the past five years has been the growth of the aerial platform rental market, with the country’s total rental fleet growing at around 20% each year, sometimes more.

This rapid growth has brought its own problems, such as fierce competition on prices. Khun Tan, Chief Executive of Guangzhou Liluo Mechanical Equipment Leasing Co Ltd – one of China’s largest aerial platform rental companies – will address these problems head on, looking at what needs to happen if China is to have a sustainable access rental sector.

Wider context

The wider context will be provided by Karin Sun, the Beijing-based consultant with Off-Highway Research, who will look at equipment trends in China and what this will mean for Chinese manufacturers. Ms Sun speaks alongside her colleague, David Phillips, Managing Director of Off-Highway Research, who will provide the global context.

China is also one of these markets that is racing through the phases of rental maturity – phases that took decades to evolve in Europe or North America. An example is online rentals: smart phones are in wide use in Chinese business, which means that rental companies are considering how best to address this new rental channel.

Cyril Drouin of Saatchi & Saatchi in Shanghai will look at how other business sectors in China have developed online sales platforms, including the use of established sites such as Weibo.

These Chinese speakers will complement the high profile speakers from Europe, Australia and the US who are also on the programme – see left. Places are still available to book at

This is a feature from the September/October 2016 issue of IRN. To read the full article, with extra images and information, subscribe to the magazine:

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