Hire sector: From machinery rental to creators of value

29.03.2023

The hire/rental sector in Italy can continue to grow provided that the construction machinery trade fair interprets it as a strategic choice and not merely as a service used to cover peak work demand. This emerged during the get-together on Thursday 23 March with the fourth webinar in the run-up to Samoter (Verona, 3 to 7 May): "The role of modern rental in the construction sector supply chain".

With the support of Rental Blog and starting from the premise that the rental sector in Italy is still very fragmented and that base legislation does not officially recognize the rental professionals, discussion focused on the evolution that rental companies are experiencing as they progress from their traditional task of supplying machinery for occasional needs to a role as general provider. This implies digitizing, training new professional figures, overseeing safety and taking charge of the ecological transition, as well as new thoughts about drivers and connections between partners.

Gianluca Benci, CEO of Alias and consultant of the European Rental Association, discussed the effective impact of digitization in the construction equipment rental field. “In general, digital improves the customer experience because it can fully support all stages – maintenance, fleet management, credit access control and insurance, for instance. The advantages go far beyond process automation. The greater efficiency achieved helps deliver timely services and better economic margins for rental companies. Yet not all players in the supply chain are interested or willing to digital approach. In this context, the high average age in the sector plays an important role."

New skills are needed to evolve the rental sector and ensure that operators move on from “renting machinery” to "creating value". This was also mentioned by Ilaria Nembro, Brand & Communication Manager of Tesya Group, who explained: “Despite the 30 % youth unemployment rate, no technicians are to be found in Italy. One study we conducted in Italy, Portugal and Spain highlighted that young people are unwilling to attend vocational courses because they think they are only for people who have no aptitude for study. Over the next two years, we intend to hire 350 people and we have consequently embarked on a complex process of repositioning the reputation of technicians. Ultimately, technicians are people with a great aptitude for problem-solving, as well as increasingly specific skills, such as predictive maintenance, mechatronics and digitization".

The value of rental services must be perceived, otherwise the only indicator remains the cost. We simply have to rethink the service. “If rental is to become truly modern, we have to get rid of the here-and-now mentality and take a more forward-looking approach," said Francesca Marchesini, Channel Manager of Kohler Engines. "We only need mention investments in personnel training and the value this ensures: a well-trained technician can tackle the industry's common enemy: machine downtime. The value of the service justifies better positioning."

"Rental companies," concluded Marzia Giusto, General Manager of Loxam Italia, "are called upon today to raise the value of their service towards their own employees as well as customers, suppliers and stakeholders. This means they also play a social role. Attention to sustainability and safety, improving people's skills, digitization and sharing ideas between everyone involved helps us achieve a different image for the sector: from mere negotiation to genuine cultural change."

The last webinar

The cycle of webinars during the run-up to the Show will come to an end with the appointment on 18 April dedicated to photovoltaic plant in quarries.