Heavy Equipment Debt Collection
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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.
Finances in the Heavy Equipment Industry
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.
The Ripple Effect of the Pandemic Economy
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.
Why Work With Alexander, Miller & Associates
Professional Recovery for Equipment Financing & Leasing
Alexander, Miller & Associates understands the unique challenges of heavy equipment financing and leasing, helping businesses recover payments, secure equipment returns, and resolve lease violations professionally while protecting customer relationships.
