Sharing Economy – already here
We are all part of the sharing economy, maybe even without realizing it. Do you buy DVDs or CDs or do you use Netflix and Spotify? Uber and Airbnb are the best-known examples of companies capitalising on the sharing economy. According to the Financial Times we are entering a new era where consumers value access over ownership and experiences over assets.
But what about sharing your equipment or machinery? Are you ready for that? Does it make sense?
Sharing Equipment or Sharing Machinery
Sharing equipment or sharing machinery is not something new. Certain industries have started this at least 10 years ago if not earlier. But the changing technology is having a big impact in making it more feasible.
Check out this article from the Commonwealth Bank ‘CBA’S SMART ASSETS EXPERIMENT BRINGS DATA-DRIVEN FARMING EFFICIENCIES‘.
It is a story about three farmers that have formed a legal entity for the finance and ownership of their equipment. CBA have developed a proof of concept (POC) asset management and sharing platform using Internet of Things (IoT) devices connected to a crop sprayer and machinery.
The simulated platform enabled the farmers to view real-time location, usage and performance of the asset not previously realised. As part of the platform, CBA built a dynamic dashboard that visually presented the operational performance of the crop sprayer. The data was instantly captured and presented back to the farmers, allowing them to make on-the-spot decisions on how to best operate the machine, as well as guide decisions on maintenance and renewal.
Digitised business assets connected to the Internet of Things (IoT) and managed with smart contracts and blockchain technology – or ‘smart assets’ – are predicted to become commonplace in many industries of the future.
Sharing Equipment/ Machinery Business
Construction Equipment Sharing
The agriculture industry is not the only industry that can benefit from sharing equipment. A 2015 study in the United States revealed that as many as around 70% of government’s heavy construction equipment remains unused.
Equipment sharing services can offer solutions to many practical problems during a construction project. As per 7 Construction Equipment Sharing Services:
1. Flexibility during the building process
Being able to rent your equipment instead of buying it, offers sometimes great flexibility. First of all, you don’t have to spend a great portion of your budget just for buying one piece of equipment. Furthermore, you don’t need to worry about transporting the necessary equipment, as the sharing service will take care of it on your behalf.
2. Perfect for one-time projects
Imagine that you have to use a really specific piece of equipment for just one project task. This machinery may be extremely high-priced and may not be worthy to buy it for an one time project. In such cases, an equipment sharing service can be the answer to your problem.
Buying the right equipment is one thing. But taking care of its storage after the completion of your construction project is something really different and quite costly. The availability of places where you could safely store your machinery can be an issue, too. Those obstacles are automatically solved, when you decide to use an equipment sharing service.
In most cases, equipment sharing services take care of their machinery’s functionality. That’s a great money and time saver for your project. If done as it should, maintenance is a long and demanding procedure and having someone else to do it instead of you can always be good.
Contact us or call on 02 9453 0300 for Equipment Finance, Commercial Finance or Home Loans.