Busy! This is the prediction made by the 2018 North American Crane Rental "Round Table Conference" on the characteristics of the North American crane rental market in the second half of 2018 - so far, the utilization rate is high, the rental rate is stable, and there are constantly emerging projects. Many rental companies are starting to upgrade.

The round table meeting was composed of senior executives from four crane companies, including Mike Appling, general manager of TNT Crane Company in Houston, Michelle Solaimani, financial director of W.O. Grubb Company in Richmond, vice president of Hill Crane Company in Los Angeles, Ron Hill, and Alex Harrell, manager of Los Angeles b&g Crane Service Company affiliated to ncsg Company.

Today, let's take a look at their regional Crane rental What's your opinion on the topic of.

What do you think of the current crane rental market in your region?

Response: full of competitiveness, but improved.

Solaimani: The mid Atlantic market is very good, basically above the average level. We are lucky to be located in an area with many infrastructure construction and government projects - the company pays more attention to the source of project funds. I dare say that the Mid Atlantic region is currently one of the best regional markets in China.

Hill: At present, Southern California's economy is in good condition. When the economy is in good condition, new projects will be in good condition. However, it is important that we not only pay attention to new projects, but also get the opportunity to contract projects from the perspective of helping the project progress.

Harrell: With the continuous expansion of the refining engineering market, it is hard to deny that the Gulf Coast crane rental market is full of competition. However, as the price of crude oil rises, we believe that new projects and opportunities will also increase.

What is the most popular crane type in your market?

Response: 200 to 265 tons

Solaimani: After the ice breaking, the usage rate of all types of cranes is very high. Among them, the demand for large cranes of 90 tons and above is the highest, and the demand for super large cranes of 350 tons and above is rising.

Hill: Liebherr LTM 1400-7.1. The demand for 500 ton cranes has increased significantly in the past two years. Moreover, with the increase of new projects, the demand for this type of crane and many different configurations and versatility of this machine is very high.

Harrell: The medium-sized all terrain crane is the most popular in the company. They have complete functions and can meet the needs of customers in many aspects.

Which type of crane needs the least?

Response: crawler crane and rough terrain crane.

Solaimani: At present, the demand for rough terrain cranes is the least. The market for small rough terrain cranes is shrinking, but any product with 90 tons or more is in strong demand, including rough terrain cranes.

Hill: 35t and 40t rough terrain cranes. Many general contractors only rent larger RTs. There are so many 40 ton hydraulic truck cranes and boom trucks on the market, which really reduces the demand for 35 ton and 40 ton rough terrain cranes.

Harrell: We found that most companies usually purchase small off-road cranes by themselves, so there is little demand for market leasing.  

What is your most common business type - refinery work, steel structure installation, civil work, etc?

Response: comprehensive, very common.

Solaimani: At present, the most common type of work is long-distance roads and bridges. We also have quite a few energy related projects.

Hill: At present, we occupy a large proportion in the electric power infrastructure industry, providing crane services for many utility companies and their subcontractors in Southern California. However, we are increasing the share of the petrochemical/refining industry. Recently, we provided crane service support for a large oil refinery in Southern California, including 10 cranes. It is expected that there will be several tasks later this year. We also support most construction markets, including steel structure installation, HVAC, bridge, power station construction, etc.

Harrell: B&G Crane Services has a strong market in the refinery market along the Gulf of Mexico, but we also focus on the heavy civil and steel structure installation.  

How would you describe the rental price of the crane?

Response: Most of them remain stable.

Solaimani: The rental price of equipment is likely to rise in an all-round way. This year, the cost of equipment purchase has been rising. In addition, considering the increase of labor costs and the rise of our total operating costs, we need to raise the rent.

Hill: Rental fees are always a challenge. Every few years, another competitor will enter the market and reduce rent to gain market share. The only way to maintain the rent price is to maintain the relationship with customers and continue to provide good support and services to prove the rationality of the current rent price. We are lucky to have a very professional customer base and can see the added value generated by providing good service for cranes.

Harrell: With the company's gradual expansion into the Gulf Coast region from 2018 to 2019, we can see that some leasing companies have reduced rental prices in order to expand market share, which is also related to the decline of the oil and gas industry in the past few years. This has led to a certain degree of saturation of the market, making the entire Gulf Coast market competitive.

Do you see the competitors reduce the rental price in order to get the project?

Response: Yes.

Solaimani: Of course. Some things will never change.

Hill: Yes, it happens frequently in today's market. Many of our competitors believe that this is the most effective way to obtain projects. However, we believe that there is more than the rental price. For example, customer service, equipment quality, operator quality and the most important safety should be the final decisive factors in selecting a crane company/service. Anyone can offer a price lower than that of competitors, but if these factors are ignored, once problems occur in the work, is it worth saving costs?

Harrell: B&G has shown a radical pricing trend along the Gulf Coast.  

What is the biggest challenge facing the crane rental market?

Response: Bad competitors.

Solaimani: The biggest challenge we see in the crane market is how to maintain our rental price. In addition, it is difficult for manufacturers to keep up with the growth of our demand due to the continuous delay in the delivery time of new equipment. In addition, in most cases, we work for subcontractors, so when Party A pays for the project, we will always be the last person to receive income. Although not all customers are like this, this situation is becoming more and more common.

Hill: Keep operation compliance and recruit qualified drivers

Harrell: Find experienced drivers and safe operation