January 08, 2025

Domestic instrument rental market has great potential

In business operations, how can we save money and worry? There are quite a few tricks in foreign companies: instruments can't be rented. In fact, since the 1960s, instrumental leasing in developed countries such as Europe and the United States has accounted for about 30% of the market share of the entire instrument market, while domestically only 1%. With the increase in the level of business management, the domestic equipment rental market will grow rapidly and be in line with international trends.

The reason why foreign companies are keen on leasing equipment is mainly due to the following reasons:

First, the lease is easy to tax. Purchased instruments become fixed assets and there is a huge backlog of capital flows. However, if it is a lease, it can be spread into the cost, to a certain extent, it can be tax deductible. Especially for some large listed companies, leasing equipment is more cost-effective than purchasing them because of the high investment rate they are pursuing. Second, the low utilization rate of purchasing instruments is prone to waste. Many companies purchase instrument inventory longer than the time spent, and the utilization rate is not high, basically between 30% and 50%. Some instruments may not even be used once a year. For example, the instruments deployed by the enterprise during peak production are idle after peaks. However, if it is a leasing instrument, there is no need to worry about the idleness of the instrument, and it is necessary to rent it. If there is no demand, the rent will be withdrawn. There is no problem of waste. Therefore, for some instruments with low usage rates, such as instruments that are only available at the peak, foreign companies usually rent.

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