HONG KONG (PRWEB) June 04, 2019
Strongbox, a construction equipment and machinery rental company for enterprise businesses and government organizations, reported today a 13.38% quarter over quarter growth in revenue. Their growth is largely attributed to procuring contracts for projects such as China’s airport expansion that was just announced.
Sven Johansson, Managing Director of Strongbox reports, “This is an extraordinary time for the construction industry in China, the country is building 200 new airports in the next 15 years and that’s just the tip of the iceberg. Our growth can be attributed to the construction industry moving from owning equipment to leasing it from us and the tremendous and unprecedented demand for construction equipment all over China.”
The machinery and equipment rental industry exists under a larger umbrella of rental industries, most of which have benefited from increased growth in non-residential construction markets.
Globally, the machinery and construction equipment rental market is projected to reach USD $230 billion by 2025, with an anticipated 4.7+% CAGR. The increasing number of large infrastructure and construction projects is driving demand for rentals of heavy construction equipment such as excavators and loaders - and, this demand is anticipated to boost market growth.
A recent study shows that earth-moving machinery has risen as the most in-demand product. These products include different types of heavy construction machinery, such as excavators and loaders that have a broad-range of uses in construction, mining, and agriculture sectors.
Earth moving equipment accounts for at least 50% of the market, driven by growing mining and construction projects in developing countries such as China, India, Brazil, and Africa - the growth in the number of projects will increase the demand for such construction machinery.
China’s expansion project is scheduled to run through 2035; the next 16 years of development will fuel a constant stream of growing revenue, profit and sustainable returns for equipment leasing companies and their investors. The China expansion project for the Urumqi airport is critical as Urumqi is an important center in China’s Belt and Road initiative.
During the last few years, China has been investing heavily to strengthen infrastructure across the region, and Strongbox has been a key resource in providing the equipment needed to move these projects forward.
Companies and government organizations rely on leasing companies because the financial overhead of purchasing the equipment needed for these large projects is simply too high. By renting the equipment and machinery instead of purchasing it, the projects can move forward more efficiently thereby reducing overruns and improving cash flows.
The company has been in business since 2003, and is a premier heavy machinery and construction equipment provider to large companies, enterprises, and government organizations.