Construction equipment less demand

Public works are those that may have increased demand for companies that rent construction equipment and light machinery.

Rental of construction machinery with a slight decline at the end of 2008.

ALCO when the company started business of renting construction equipment, the market had a high demand today, CEO Emilio Valverde, acknowledged that the company had to diversify its customer base to reduce dependence on construction.

The current strategy for Construction Equipment Rental (ALCO) is to seek clients among industrial machinery requiring constant light for the maintenance of their buildings or the type of work performed, for example, the agricultural sector.

According to Valverde, from late 2008 to date back some of the clients’ team suspended due to construction projects, but others continued with their plans and even increased their demand.
The latter argued that the sales, said Valverde, even as demand increased.

The builders of the road and Ciudad Colón-Orotina Diquis. The hydroelectric project is part of maintaining the high percentage of leases ALCO, added the manager.

In mid 2006, when construction was booming, companies engaged in supplying scaffolding, cement mixers and compactors had to run to cope with the demand that was part of the building.

At that time, income Team Building (Renteco) even reversed to increase at double the amount of equipment available.

Today, companies are implementing more cautious over the possibility that in 2009 the building suffered a major slowdown.

According to data compiled by the Federal College of Engineers and Architects (CFIA), over 2008 square meters of the amount recorded was stable, but in November there was a considerable decline.

Less demand

Luis Fernando Martinez, owner of SA Building rentals (Alcon), explained that since August 2008 started the decline in demand for rentals.

According to Martinez, the company stopped the production process and acquisition of new equipment accounted for one monthly rate.

The employer explained that his current occupation is a 60% share in the company can sustain. Anteriormente mantenía en alquiler el 80% de su inventario, entre los que están batidoras para cemento y andamios. Previously held at the rent 80% of its inventory, which includes cement mixers and scaffolding.

For the owner of Alcon, one of the main advantages of the acquisition is that that the purchases made so far were done with equity and, therefore, the company has no debt.

Despite fewer sales, Matínez explained that the months of November and December usually tend to have low activity, with many new buildings are scheduled to begin in January or February.

Along with the machinery that is in maintaining the occupation could be between 80% and 85%. “There has been a return of equipment but others had more customers demand.”

Valverde for one of the greatest rhythm is decreased tourism. However, projects that had already proceeded.

Not a trend

The general manager of Esco Costa Rica, Juan Carlos Rojas, said that according to the annual accounts 2008 was better than 2007. But in reviewing the performance month to month, noticed a slight decrease in demand for the different teams.

Despite this behavior, the executive explained that from 5 to January 8 spent several of his clients who had returned in December last team to reapply.

The executive said it received in the last months of 2008 can not be described as a trend. Recommended for this behavior of the expected demand during the first quarter of 2009.

“Of the projects where only one team had the brakes, the other buildings have followed,” said Rojas.

Esco has three divisions of hiring, engineering (scaffolding, shoring, formaletas), mechanical (compaction, machinery) and the health of herds.

Rojas explained that in the past two years have made investments to grow in inventory, but used different ways of financing such as credit providers and banks to avoid dependence on a single.
While these companies feel an effect on its business, all state that will always demand in 2009.