Economic pressure drives uptake of hybrid ownership models

SEASONAL PEAKS There has been an increased interest in rental, short-term hire and refurbished forklifts, particularly for seasonal peaks, project-based work or uncertain demand cycles
Procurement decisions in South Africa’s capital equipment industry are increasingly being shaped by customers’ need for predictable costs, minimal downtime and reduced operational risk, says capital equipment company Criterion Equipment sales manager Selly Moshoaliba.
In the construction sector, “capital purchases are being carefully evaluated against project duration, uptime and total cost of ownership, rather than price alone”.
Many contractors are favouring ownership for core site equipment that is used consistently across multiple projects while remaining cautious about over-investing in machines that might remain idle between contracts, she adds.
Combining ownership and rental models has become the standard approach for organisations seeking to balance cost control with operational resilience.
“In addition to customers owning core units and renting supplementary equipment when needed, flexible terms, such as rent-to-own or contract maintenance-linked ownership, are gaining traction,” Moshoaliba says.
There is also a clear focus on risk management and cost predictability.
“Construction customers want equipment that is robust, simple to maintain and supported locally, which makes ownership attractive when paired with structured maintenance agreements,” she adds.
Correct attachments and customisation also play an important role in improving operational efficiency and protecting assets, says Moshoaliba.
“From custom fork lengths to specialised load-handling solutions, the right attachment can reduce handling time, improve safety and minimise wear on the forklift.”
In line with this focus on cost control and extending asset life, refurbishment and rebuild services are becoming more prominent in Criterion Equipment’s offering, as customers seek cost-effective alternatives to new equipment.
Customer response has been the strongest when refurbishment is supported by formal service arrangements.
Further, after-sales support is a key mechanism for managing downtime and operating costs, particularly in a difficult trading environment, Moshoaliba adds.
She points to the growing role of digital diagnostics in improving service efficiency, explaining that Criterion Equipment uses advanced diagnostic systems and field-service tools that enable technicians to quickly identify faults, monitor performance and reduce troubleshooting time on site.
These systems support more accurate maintenance planning, faster repairs and improved first-time fix rates.
Moshoaliba says Criterion Equipment is focused on evolving its offering in line with customer operating conditions.
“Criterion Equipment is continuously evaluating its product and service offering to identify areas where we can add tangible value to our customers’ operations. By staying closely aligned with customer needs and operating conditions, we ensure our offering evolves in a way that supports long-term performance,” she concludes.
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