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Who pays for new energy equipment? A leasing company?

Dec 30, 2022

Recently, the foreign media Equipment World (hereinafter referred to as "EW") launched a series of reports on Future Fuels, aiming to discuss the evolution of diesel fuel alternatives that construction equipment and manufacturers around the world are experiencing, including hybrid power, battery power, fuel cells, as well as hydrogen internal combustion engines and hydrogen fuel cell technologies. The following is the fifth report in a series.
The previous reports introduced in detail the various forms of alternative fossil energy and the corresponding development rhythm. Many readers feedback whether these technologies will face many challenges in practical application. On this issue, Foreign Media EW continued to deeply discuss the possibility of new energy engineering machinery in application. One of them is "try before you buy", so who will pay for it?
Recently, Sunbelt Rentals (hereinafter referred to as Sunbelt) announced that in order to achieve the goal of "net zero" carbon emissions, the company will provide customers with SM all electric skid steer loaders.
It is understood that Sunbelt is a subsidiary acquired by Ashtead Group in 1990, while Ashtead Group is a British industrial equipment leasing company, which was established in 1947. At present, about 85% of Ashtead Group's revenue comes from Sunbelt's operations in the United States.
Leasing provides a good way for equipment contractors to buy after trial. Let's take a look at the interview of the two leaders of Sunbelt, one of the giants of international construction machinery leasers, from the foreign media Equipment World. Here are Brent, the director of Sunbelt Rentals, product line manager, vice president of Sunbelt Rentals, team and product support Brad!
EW: What is Sunbelt's interest in low carbon and net zero technology of construction equipment and its current development stage?
Brad: We have invested in electric and hybrid power equipment for some time, but Sunbelt is still in the exploration stage. Technology is changing with each passing day, and we are also constantly learning. In addition, we are committed to guiding our customers how to better use the equipment to meet their needs. We also work with suppliers and OEM manufacturers such as Bobcat to develop and test electrical solutions that bring value to our customers.
Brent: As part of our current business plan, Sunbelt is committed to playing a leading role in ESG. This includes actively investing in electrical 名媛直播 to accelerate the availability and penetration of this equipment throughout the industry. We want to ensure that our customers have access to solutions that help reduce their carbon footprint. We also have our own enterprise initiative to reduce our own carbon emission intensity by 35% by 2030.
EW: Sunbelt has established cooperation with SM and its all electric compact crawler loader. From the establishment of cooperation to the actual working conditions of users, what preparations has the company made for this?
Brent: We provide customers with different forms of working conditions, such as indoor or noise sensitive environments. SM T7X small crawler loader is a pure electric equipment, and its power is equivalent to that of diesel engines of the same tonnage. In terms of charging, customers can use standard EV chargers or plug them into 240 sockets to charge the equipment, or use the energy storage system (ESS) provided by Sunbelt Rentals to meet the charging requirements.
After a period of application, the advantages of SM T7X continue to emerge. The noise is low and the operator experience has been greatly improved. After the noise and vibration are reduced, the on-site communication with the construction workers becomes more convenient. Driving fatigue is reduced and comfort is further improved. In addition, its performance is as powerful or even stronger than that of diesel engines.
EW: What preparations should contractors make to lease equipment from Sunbelt, and how to control the cost input?
Brent: For contractors who rent all electric equipment like SM T7X, there needs to be a change of thinking mode compared with managing a combustion engine. They need to use the noon break or equipment downtime to recharge the equipment. From the perspective of operation, it is like a traditional compact crawler loader, which can be easily used without too long of adaptation.
Brad: We may charge a higher rent for some pure electric machines, but considering the total cost of ownership of the machines on the job site, the cost premium of customers can be minimized or eliminated by leasing. In addition, due to no need to add diesel, given the current natural gas and diesel prices, the rent is basically offset. In addition, Sunbelt provides customers with the opportunity to test cutting-edge technologies.
EW: Has Sunbelt ever provided diesel electric hybrid machines or other types of low-carbon solutions in the past? If so, what have you learned from this experience?
Brent: We have learned that it is usually easier for customers to transition from equipment using internal combustion engines to equipment using hybrid power than to use pure electric equipment. The acceptance cycle is shorter. In some cases, the hybrid device is the best solution for the application, without thinking about how to charge it all the time.
Brad: Sunbelt has been trying hybrid solutions in our team for many years. In recent years, we have provided customers with hybrid aerial working platforms (MEWPs), excavation equipment, road vehicles, lighthouses and other equipment. We found that their performance characteristics and reduction of idle time are beneficial. These equipment are more efficient than standard internal combustion engines. Over the years, we have learned to lease the ownership of equipment, enabling us to increase investment in these innovations and technologies with confidence. This ultimately benefits our customers because we can put the device into practice in the best way and get the results they want.
EW: Can leasing companies become a bridge for contractors to move towards a low-carbon future, making it easy for their customers to transition and becoming a successful path of trial before purchase?
Brad: We regard electrical equipment leasing as a bridge to support customers to move towards a low-carbon future. In this process, it should be considered as an important way to adopt and create low-carbon workplaces.