The leader of construction machinery and equipment rent in Switzerland – Avesco Rent – is expanding its business outside the Swiss market for the very first time. Since mid-May the company is also running its business in Lithuania. In 2017, Avesco Rent had 60 million euro of turnover in Switzerland. With 5 million euro investments towards the machines and equipment of the fleet in Lithuania, the company expects the revenue from rental business in Lithuania to double in 2018. The expansion does not stop at Lithuania – Avesco Rent plans to open branches in Latvia and Estonia in 2019.
According to Vincent Albasini, the CEO of Avesco Rent, there was a reason for choosing Lithuania as a first market outside Switzerland: „We had an opportunity to take over the dealership from Caterpillar from Baltic States and we took it – it was an excellent opportunity to grow. We are already a number 1 in Sales of construction machines in Lithuania and rest of Baltic states, but after doing a throughout research of Baltic market we also saw an opportunity for rental business. According to the data (IHS Markit, 2018), the construction field in 2017 has been growing in all Baltic states (compared with 2016): 18,7 % growth stated in Estonia, 19,2 % growth – in Latvia, while in Lithuania the turnover of construction field grew by 6,9 %. Although the overall business growth is biggest in Estonia, the rental market growth is more significant in Lithuania – according to the same research, in 2016 (compared to 2015) the sector grew by 8,7 % (compared to 3,1 % in Estonia and 8,6 % in Latvia). The rental market dynamics, as well as the future perspectives, have highly influenced our decision.
Another thing, V. Albasini adds, is the nature of Lithuanian construction market: „It is showing strong drive and important dynamism both in infrastructure development and residential construction. The market research we have done showed the potential of development and the size of the market seemed appealing – we see it as very similar to the one we have in Switzerland. Plus, we already had a very competent team here in Lithuania and you do have the fastest public Wi-Fi, which is very important for the new way of renting online we‘re offering“, – Vincent smiles. „So the stars aligned just right.“
Offers to rent online
Avesco Rent enters Lithuanian market with a unique proposition – a possibility to rent the equipment entirely online. The company was the first in the world to present such feature in the field back in 2014 in Swiss market under the company named FastRent. „The rental area is changing with the rest of service field – digitalization, connectivity and efficiency today are probably the strongest factors that influences the construction field that was once perceived as very conservative. Today, the access to information and quick solutions are crucial to the construction field – the market research also showed that most of rentals in construction field happen on demand – very little planning is done in advance. And the ability to rent entirely online responds this need and saves time. However, customer needs to change his habits. But once he tries the new way, it becomes easy to adopt a new habit. That is why our slogan is: It’s easy when it’s easy! And then there‘s no question left, who wins“, – says Vincent Albasini.
Renting online will not be the only way of working with Avesco Rent – traditional options, like call or renting directly on the branch, are still there. „In Switzerland, 30 % of transactions of FastRent company are made when renting online – we are certain that this new and different way of renting construction equipment will also find its place in Lithuanian market”, – says CEO of Avesco Rent.