The Future Landscape of Scissor Lift Rental in South East Asia

Scissor lifts, integral to various industries such as construction, facilities management, maintenance, and more, are a prominent component of Mobile Elevated Working Platforms (MEWPs). This category also includes boom lifts, vertical lifts, and spider lifts, but scissor lifts are often the most utilized in terms of volume.

Regional Scissor Lift Market Insights

The correlation between the usage of Mobile Elevated Work Platforms (MEWPs) and GDP per capita is notably strong. In Southeast Asia, Singapore stands at the forefront of market maturity, followed by Malaysia, with other countries in the region gradually catching up. Singapore's prominence is not just regional but extends globally in terms of scissor lift market maturity. Our 2021 research data reveals compelling statistics: in Singapore, there is one MEWP unit serving approximately 387 people. This ratio is expected to decrease further, signifying increased MEWP volume in the post-COVID era. Such data underscores Singapore's significant market growth and its leading position in the adoption and utilization of MEWPs.

However, the rest of the South East Asia countries still lag behind the global standard.

Read also: Is Singapore’s MEWP Rental Market The Most Competitive In The World?

Market Evolution: Pre-COVID vs Post-COVID

The landscape of the scissor lift rental market has undergone remarkable changes pre and post-COVID. Before the pandemic, the market was relatively stagnant. The advent of COVID-19 brought about a drastic decline due to various restrictions and work halts. However, the market rebounded sharply with the resumption of construction activities. The overlap of delayed and ongoing projects created an unprecedented demand for scissor lifts, exposing a significant supply gap.

Rental companies responded by importing equipment into Southeast Asia, particularly in Singapore and Malaysia. The challenges in importing European or US brands, mainly due to shipping costs and supply chain issues, led to a strategic shift towards Chinese manufacturers. 

The rise of brands such as Dingli, Zoomlion, Sinoboom, and XCMG was marked by their increasing quality, shorter lead times, and competitive pricing. China's domestic demand for MEWPs almost doubled during the pandemic, spurring growth in the scissor lift industry. Many factories, previously serving as OEMs for major brands, began developing their own brands to compete in the global market. This shift notably impacted major US brands like Genie and JLG.

Scissor Lift Rental Market Dynamics and Trends

Throughout my three-year exploration in Singapore and Malaysia, where I engaged with more than 100 scissor lift rental companies, a prominent trend became apparent: the increasing number of scissor lift rental companies. This surge is largely attributable to the affordability of Chinese-manufactured scissor lifts, which has significantly lowered the barriers to entering the market. For instance, the price of a 6-meter scissor lift has decreased from approximately SGD 16-18k to under SGD 10k per unit. This price drop has led to a notable increase in both the number and diversity of market participants. 

According to unofficial data provided by key industry players, the number of Mobile Elevated Work Platform (MEWP) units in Singapore has risen from about 15,000 to 25,000 units over the past few years. Similarly, in Malaysia, the MEWP units have grown from just under 10,000 to around 15,000 units. This significant influx has not only broadened the market's understanding of scissor lifts but also enhanced their usage, particularly in countries like Malaysia, Indonesia, and Thailand, where market penetration was previously lower.

Read also: The Most Comprehensive Guide of Renting Scissor Lifts

Strategies for Rental Companies

Post-normalization of project demands, we think an oversupply of scissor lifts is anticipated, leading to fierce pricing competition and market saturation. The entry of international players is expected to escalate this competition further. In terms of the used equipment market, the preference for new warranted Chinese equipment with financing options is likely to diminish the value of used equipment. Have used equipment on hand, maybe now is the right time to monetize.

Over the past decade, as scissor lifts have become more widely used, the need for extensive sales education has decreased. Sales overheads are likely to increase, with diminishing returns. A shift towards pull marketing strategies, focusing on online presence through websites, social media, and equipment rental platforms like Antbuildz.com, is highly advisable.

Allocating focus on short-term rentals can also enhance business resilience. Antbuildz.com's data shows significant revenue potential in short-term rentals compared to traditional monthly leases. Furthermore, minimizing scissor lift acquisition costs remains a competitive advantage, albeit more accessible to larger companies with greater bargaining power.

Conclusion

Let's not only dwell on the negative aspects. The influx of more companies and advanced machines into the market will play a crucial role in educating consumers and expanding the overall market size. This is particularly significant for countries such as Malaysia, Indonesia, Thailand, and others, which may currently lag behind nations like Singapore in terms of market development.

The dynamic nature of the rental market necessitates a long-term, visionary approach, not just for competitiveness but also for sustained growth. Exploring diverse rental products and embracing technological advancements are key. Platforms like Antbuildz.com play a crucial role in assisting rental companies in maximizing their business potential and equipment sales. Considering scissor lift rentals? Let’s rent smarter at Antbuildz.com!

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