Storent Latvia director Guntis Grīnbergs shares his thoughts about Covid-19 impact on the construction equipment market
The construction equipment rental market is changing and will never be the same. Managers need to act quickly and deliberately - nothing will be the same tomorrow, thinks Guntis Grīnbergs, director of Storent Latvija
The economic environment is extremely challenging this year, as the Covid-19 pandemic plunged the world economy into a sudden and very sharp recession. STORENT has introduced significant innovations to adapt to the new e-commerce preconditions.
STORENT commenced the year of 2020 with the development of digital services and, due to general changes in the recent past, the process development was accelerated, fostering more active use of remote services.
Latvia's GDP contracted by 9.8% in the second quarter. Major builders and experts believe that the decline in construction sector will continue in the second half of 2020.
Sure, there are plenty of state aid programs and projects, but in general, banks are very cautious in regards of private investment and development projects - especially in the sectors hardest hit by the crisis.
Despite the forecasts updated by financial leaders, the popularity of renting construction equipment online has grown rapidly. During the summer months there was the largest number of rental orders. The number of the STORENT construction equipment rental application users is growing and the trend is expected to evolve.
"We are the first in the industry with a complete digital equipment rental cycle - from concluding a contract to receiving the equipment at the specified address. We continue to focus on the company's digital development and strengthening of its position in Latvia, creating more and more new and innovative solutions in the construction equipment rental segment. We are dedicated to sustainable development of the company, and we are glad that sustainability has become an integral part of our business”, emphasizes Mr.Guntis Grīnbergs, Director of STORENT Latvia.
The results of this half-year are excellent, despite the fact that recent events had impact on everyone and we had to run the business in absolutely different way. We, the STORENT, have also adapted and changed. Our success story is based on relentless digitalization, as well as education of our clients and employees.
"As we change, we change the industry and the current performance indicators of the company's digital solutions prove that we are on the right track. The number of the Online Platform users is growing every day due to the fact that we have created a rental platform where the Client can rent what he/she needs using the smartphone, as well as choose the delivery method, pay and follow all the process and its history ”adds Mr. Grīnbergs.
Nowadays entrepreneurs' ability to adapt is being tested like never before. Entrepreneurs are now moving at an unprecedented speed to provide quality client service while taking care of their employees. Businesses use digital channels to ensure continuity. Current acceleration will force organizations to review and totally update their digital strategies, in many industries, not just construction.
Business leaders need to act quickly to address immediate system resilience issues and lay the foundations for the future.
“Being client-oriented, we have introduced the Loyalty Program - Rental Points. Our clients can earn points after each rental transaction and the collected points can be used as a payment option on the STORENT online platform. We "reward" our Clients by evaluating their trust. Undeniably, Rental Points program is an excellent tool to boost the number of the online rental platform users. It is a real pleasure that our Clients appreciate the benefits provided for them,” continues Mr. Grīnbergs.
STORENT's mission is to modernize the construction equipment rental industry and provide more opportunities for clients and businesses throughout the Baltics.
"According to the forecasts the second half of this year will not be favorable, it goes without saying - the market situation dictates the rules. However, we are positive about everything, we have invested our knowledge and resources to create a digital construction equipment rental platform and we are confident that in 2021 online-focused shopping and services will continue to flourish,”adds Mr. Grīnbergs.
It is important to develop long-term strategies for greater resilience and to use lessons learned to build systems that are secure, reliable and sustainable.
We will never be the same, and the process of change will have an impact on our clients, employees, our attitudes and business practices!