Download Market Report

How Heavy Equipment Is Rented Out: Insights from Contractors in Kuwait

How Heavy Equipment Is Rented Out: Insights from Contractors in Kuwait
January 14, 2022
How Heavy Equipment Is Rented Out: Insights from Contractors in Kuwait

Introduction

We initiated a market research study by interviewing five experts in the top managerial positions in construction and contracting companies in Kuwait. This article looks at what the contracting companies look for when renting out heavy equipment, and the problems they face in the same

B2B heavy equipment rental

Experts stated that they do not rent out their equipment to others, while some do rent equipment from other firms. It was clear that contractors want to own their equipment rather than rent it. 

However, it becomes necessary to rent owing to a lack of equipment due to the number of projects, or a certain project demands equipment that is not commonly utilized at the firm. 

Financial problems of renting equipment

It quickly became evident that renting equipment comes with a slew of financial problems. Due to payment issues, companies who rent to others only rent to firms and contractors they know and trust.

When renting equipment, people either make late payments or make full payments but overestimate the rental term, resulting in a quarrel between the two parties about the money owed and the renting period.

Because they have already made a down payment, some contractors may hire the incorrect equipment for the job and keep it idle, refusing to pay the entire cost because the equipment was never used.

Drivers and operators

When it comes to heavy equipment management and operation, drivers and operators are critical. The criteria for drivers and operators differ depending on the type of equipment employed.

Heavy equipment needs specialized drivers and operators who have prior expertise with the equipment and must engage in training; this results in a higher salary for the operators, which typically falls in the range of 250-300 KWD as of mid-2022.

Drivers and operators are constantly supervised by their supervisors to ensure the quality of service and the smooth flow of projects. 

Companies want to offer an operator with the machine when renting out equipment to minimize problems and mishaps. Because the operator will be accountable for his own equipment, there will be no insurance difficulties between the two parties.

Equipment maintenance

The equipment goes through regular maintenance, even while idle. It was clear that there is a schism in the industry regarding some approaches; certain companies have adapted and have been digitizing their work, whereas others are still strongly opposed to digitization and follow an old-fashioned approach by utilizing formal paper requests, having staff manage and physically track equipment, and using traditional sign-in sheets and supervisors for employees and projects. 

Equipment management

The method for equipment management is quite similar across industries. When idle, the heavy equipment is normally placed in a dedicated parking area that the corporation rents or owns and is subjected to planned maintenance.

When equipment is hired or requested for a project, it is tracked from the time it is relocated from the parking area it was in until it returns once its purpose is completed.

Contractors also mentioned intentions to develop new departments related to equipment, related to  transportation, maintenance, and acquisition. This demonstrates the significance of equipment in the sector, as organizations intend to grow their departments to better handle their equipment.

Issues in Heavy Equipment Renting

A few problems were discussed throughout the interviews. One of the major issues mentioned is the requirement evaluation for specific projects. In most situations, the project manager fails to correctly appraise the project and the equipment required, resulting in the incorrect equipment being hired.

This produces disagreements between the two parties since one wants a refund and the other refuses the refund based on their initial agreement.

Another issue with renting equipment is transportation of the specified equipment. The transportation is dependent on the rental term. If the rental time is less than a week, the renting party is responsible for transportation. If it’s between 1-2 weeks, the obligation is divided between the two parties. 

​​

If it exceeds 2 weeks, the liability falls on the person who owns the equipment. However, not all organizations adhere to this guideline, which causes friction between the two sides.

Another problem is that some people in this sector are not technologically advanced. This creates a problem in digitizing the sector, which can however be easily overcome through training programs.

Conclusion

Project management is a vital part of business strategy. It allows contractors to manage projects, equipment and more in a way that is solid and reliable. Get our full market research report on the construction market outlook and heavy equipment rental in Kuwait. Reach out to us at info@poixel.com to initiate a market research study for your business.

Insights
The Cakes & Gifts Retailing Market in Kuwait - Local Insights
In this article, we examine the cakes and gifts market in Kuwait, consumer behavior, and what aspects businesses should keep in mind in order to succeed in the marketplace.
October 15, 2022
Kuwaiti Farmers Suffer as the Market is Unable to Meet Their Needs
For most nations, a badly developed agriculture sector would be a serious concern. Kuwait, in comparison, may avoid such hazards due to its small population, higher national income, and diverse food supply chain.Poixel conducted market research to look at the key developments in Kuwait’s farming industry and how it impacts the supply chain
October 4, 2022
Construction Market in Kuwait Hits Hard, Recovery Difficult
The construction industry has clearly seen ups and downs in recent years as a result of a variety of socioeconomic and economic issues. The construction sector is in decline, with various contractors feeling pessimistic about the overall economy due to rising costs, a labor shortage, and excess demand that cannot be met.
October 3, 2022
Jarir Bookstore's Customer-First Policy Lends Top Market Position In Kuwait
Poixel finds through its market research in Kuwait that the arts industry has gone through several phases. This article looks into how consumer behavior has evolved from COVID-19 and how Jarir bookstore is the market leader in the arts and stationery industry in Kuwait
October 1, 2022
Stationary and School Supplies Market in Kuwait
in 2022, brands are seen running “Back-To-School” offers and marketing campaigns to further bring in customers. The article highlights how businesses can approach the industry to move forward in the future with sales now returning to normal.
September 7, 2022
How Heavy Equipment Is Rented Out: Insights from Contractors in Kuwait
We initiated a market research study by interviewing five experts in the top managerial positions in construction and contracting companies in Kuwait. This article looks at what the contracting companies look for when renting out heavy equipment, and the problems they face in the same
January 14, 2022
The Reason Harley Davidson has an iconic Brand Identity
Few companies succeed in building brands that eventually become cultural icons in our society and achieve iconic status. A brand can be forgiven for lower product quality when compared to competitor products if its brand story and identity resonate with its target audience.
December 5, 2021
One Change in Apple’s Marketing Message Increased Brand Loyalty.
Remember: It’s not important to use these in a step-by-step order. Some elements might not exist in your case. Take this as a guideline for your next marketing message. See which element applies to you and go for it.
November 19, 2021
The Cakes & Gifts Retailing Market in Kuwait - Local Insights
In this article, we examine the cakes and gifts market in Kuwait, consumer behavior, and what aspects businesses should keep in mind in order to succeed in the marketplace.
October 15, 2022
Kuwaiti Farmers Suffer as the Market is Unable to Meet Their Needs
For most nations, a badly developed agriculture sector would be a serious concern. Kuwait, in comparison, may avoid such hazards due to its small population, higher national income, and diverse food supply chain.Poixel conducted market research to look at the key developments in Kuwait’s farming industry and how it impacts the supply chain
October 4, 2022
Construction Market in Kuwait Hits Hard, Recovery Difficult
The construction industry has clearly seen ups and downs in recent years as a result of a variety of socioeconomic and economic issues. The construction sector is in decline, with various contractors feeling pessimistic about the overall economy due to rising costs, a labor shortage, and excess demand that cannot be met.
October 3, 2022
Jarir Bookstore's Customer-First Policy Lends Top Market Position In Kuwait
Poixel finds through its market research in Kuwait that the arts industry has gone through several phases. This article looks into how consumer behavior has evolved from COVID-19 and how Jarir bookstore is the market leader in the arts and stationery industry in Kuwait
October 1, 2022
Stationary and School Supplies Market in Kuwait
in 2022, brands are seen running “Back-To-School” offers and marketing campaigns to further bring in customers. The article highlights how businesses can approach the industry to move forward in the future with sales now returning to normal.
September 7, 2022
BOPIS: The Game-Changing Retail Experience in Kuwait
Buy Online Pick Up in Store (BOPIS) refers to a service that enables customers to make online purchases and pick up their orders in-store. There are various options for picking up the order, including using BOPIS retail lockers, curbside pickup, or designated pickup locations.
October 6, 2021
Why Mr Baker owns a large slice of the cake market in Kuwait
From our marketing research, we find that Mr Baker has become the market leader in the cakes industry. In this article, we examine what are the reasons for its success, and what can other brands learn from it.
October 4, 2021
Kuwait's Used Cars Market: What Car Buyers Want And Why
As of 2021, the automobile sector will likely serve 1.8 million people. This article seeks to give readers a general understanding of the used car market in Kuwait and consumer preferences related to it, so brands can develop a proper marketing strategy and build a unique offering for the market. 
September 25, 2021
The Developments in Kuwait’s Automobile Market
Poixel’s market report seeks to provide a thorough analysis of the Kuwaiti automotive market by identifying the major players, their business models, and the market overview, from our survey data, in-field interviews, and data analysis.
August 15, 2021
The 5 Industries In Kuwait Most Ready For Curbside Pickup
Rerum eveniet et et quas voluptas aut sed distinctio. Quod at quia aut itaque aut nihil quaerat officiis. Temporibus beatae repellat sit dolor
August 2, 2021
The Floral Gifting Market Analysis of Kuwait - Consumer Insights
Poixel interviewed flower shops in Kuwait to understand their business strategy and consumer behavior. This article looks at consumer behavior regarding buying flowers and gifts and how flower shops manage their supply chain.
July 12, 2021
The Changing Consumer Trends in The MENA Region in 2021
PWC conducted market research in the Middle East, surveying 500 individuals to assess how their behavior adapted to the new environment. We analyzed the data from market research agencies to explain the changes in consumer behavior in three domains.
May 2, 2021
The Disruptive Technology of the Future and Why You Should Consider It
The possibilities of AR tech being integrated within businesses are endless. For consumers, it can virtually replicate the shopping experience of going to a physical store while also removing many obstacles related to it.
April 11, 2021
Request a project
Close
Exit