Who would want to go into the mobile crane rental business, eh?
Baldwins going under in ther UK; Maxim losing money hand over fist in the USA. Not so long ago it was Breuer in Germany. If these big guys can’t make a decent go of it, what chance has anyone else got? Right? No! It is totally wrong to look at the difficulties of a couple of industry leading giants and assume that it is simply not possible to make money in the crane business. Baldwins failed for very particular reasons. On home turf, in the UK, Baldwins was essentially profitable but made the mistake of guaranteeing the debts of its high risk American adventure. Every sports fan knows that playing away is always harder than playing at home in comfortably familiar surroundings. And Maxim is struggling principally because of the massive debt burden that it has carried since it was recapitalised in July 1998. The interest payments are staggering. Even though both the UK and the US market are highly challenging – as they are almost everywhere, it seems – Baldwins and Maxim would be okay but for very specific factors.
So what’s the common denominator? I would have to say insatiable appetite and over-confidence. An appetite for hard work is a hugely positive trait. But a rampant appetite for aggrandisement needs moderating with a little caution. Of course a high degree of self-confidence and barrel-loads of ambition are needed to take out the sort of financing needed to buy a decent crane (not to mention the insurance to operate it). These machines are expensive and while there are certainly returns to made, there are no guarantees (despite what certain manufacturers may try to make you think). It is easy to fail spectacularly. However, the headline-making difficulties of certain big rental companies over the years should not be enough to put anyone off setting up their own crane hire company. Have the self-belief that you can succeed, and if you work hard enough then you will. Never be afraid to have a go. But temper the risk-taking. Fully understand the downside and its consequences. Do not assume that becoming bigger brings more wealth. There is no rigid relationship between profitability and size.
Finally, it is my New Year’s wish that all our readers – whatever aspect of the crane business you are in – have a wealthy and healthy 2003.
It is time to turn the fortunes of this industry around.
