The heavy equipment industry is an indispensable part of the construction industry. Rentals and sales of heavy equipment facilitate work on everything from private homes and businesses to the streets we drive on and the fields from which we obtain our food.
This makes heavy equipment as necessary as any material needed in the production of a final product.
In addition to the vast assortment of machines included in the heavy equipment industry, the industry also faces unique challenges when managing the receipt of payment and handling of non-payment by consumers.
These challenges are related not only to the size of the machinery, but also to the relatively high cost of the machines and, when applicable, the length of rental periods needed for projects to be completed.
The industries supported by heavy equipment use are often somewhat seasonal due to weather patterns that may prevent work from being done at a strong pace. This makes the revenue brought in by heavy equipment sales and leases somewhat seasonal as well.
The Covid-19 pandemic hit virtually all major industries hard. Fortunately for heavy equipment dealers, construction was deemed an essential service and, in many cases, work was allowed to continue under state and county guidelines. However, this did not prevent the industry from taking a hit.
Although some projects that were already underway continued, projects that were in the early stages were frequently delayed. Even with the projects that continued, it was often with a smaller workforce onsite to maintain necessary social distance and to keep workers safe.
Even when workers were available and work was permitted, the disruption of the supply chain often left them unable to make advancements on their projects. Large scale unemployment and the economic downturn for many businesses also prevented many projects from moving forward, sometimes indefinitely and sometimes forever.
The ripple effect of this slowdown in construction has been felt by industries that support construction, and this includes the heavy equipment industry. There has been a noticeable decline in the anticipated sales of heavy equipment.
There have also been changes to the nature of how customers view the purchase of heavy machinery. Increasingly, customers are opting to lease their heavy machinery as opposed to purchase it. This is due in part to customers seeing the advantages of keeping their out of pocket costs low and ensuring someone else is responsible for maintenance and repair of their heavy machinery.
Lack of certainty about what the future holds is also leading companies to view leasing as a safer option. In the face of this uncertainty, problems with non-payment of debts have arisen, putting additional stress on companies in the heavy equipment industry.
The heavy machinery industry is complex. There is no one standardized solution when debt collection is necessary. We at Alexander, Miller & Associates understand the dynamic and varied nature of the business and its clients and are well equipped to assist you in your collection needs.
There are many different types of equipment that fall into the category of heavy machinery, and there are just as many types of customers who procure equipment from a heavy machinery seller or leasing agent.
These customers come from all different walks of life. Often they are the leaders, managers, and owners of their businesses. They are professionals who require professional handling.
Problems of non-payment can arise for many reasons. Sometimes customers want to do the right thing but feel they’re unable to do so because of factors impacting their business income. Other times, however, customers may give excuse after excuse for not paying their debt, creating a lot of unwanted stress for you and your employees. In either case, Alexander, Miller & Associates can assist you in getting paid.
It can be difficult for someone who is not specialized in debt collection to achieve a positive outcome with a customer whose account is in arrears. Oftentimes, businesses will allow accounts to fall behind too far, not realizing that the longer an account goes unpaid, the more unlikely it is that it will be paid or paid in full.
We can help by contacting your customers early in the process and using our training and specialized techniques to obtain payment so your business can remain solvent and strong.
If you’ve sold heavy equipment with a financing plan, we will work to make sure your customer takes responsibility for his debt to you. If you’re leasing equipment, we know it needs to be returned to you. You need to be paid for the time the customer kept it.
We recognize that sometimes machinery is not returned on time or in the expected condition. When your customer has not fulfilled their end of the lease agreement or has treated your equipment in a way that is not compliant with your lease agreement, we are skilled at handling your customer professionally and compassionately to help prevent your business from experiencing any consequences such as negative customer reviews.
We have your back. We will handle this type of potentially touchy subject and work to get satisfying results for you.
At Alexander, Miller & Associates, we understand that the heavy equipment leasing and financing industry has characteristics unlike those of other industries. Our staff will discuss with you the nature of your business and your customer, ensuring that our encounters with your customers are always sensitive to each individual situation.
We are well-versed in the laws pertaining to heavy equipment collections, so you can rest assured that you are in good hands as we work to procure payment of the money owed to you. We’re here for you!