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This news article was originally written in Spanish. It has been automatically translated for your convenience. Reasonable efforts have been made to provide an accurate translation, however, no automated translation is perfect nor is it intended to replace a human translator. The original article in Spanish can be viewed at Entrevista a Jorge Caballero, director de marketing de Alco Grupo Empresarial
"Renting is best investment because it ensures economic performance for each euro spent"

Interview with Jorge Caballero, marketing director of Alco group business

Esther Güell / Laia Banús08/01/2009

January 8, 2009

In Alco count products, resources and services exclusive to each of its customers and adapted. It adds more than 40 years and is the result of the merger of Alfe income Catalunya, S.L., Alfe rentals sales and services, S.L. and CMP Vallés, S.L., which have subsequently joined pettyS.A., Santiago Sánchez, S.A., and Claveria Transal, S.L., to give rise to the third national company by turnover in the sector of rental and sale of equipment and auxiliary means. ALCO business group has more than 700 people and twenty-three stores distributed by Aragon, Cantabria, Castile and León, Catalonia, Valencian Community, Balearic Islands and Andorra; that it added more than 200,000 square meters facilities.
Jorge Caballero, director of Marketing of Alco business group
Jorge Caballero, director of Marketing of Alco business group.

Your company is specifically dedicated to the rental of machinery for public works. What were the factors that made him opt for the rental of machinery sector?

ALCO emerged more than 40 years as a warehouse of construction machinery, even though it was 1980 when he began to devote himself to the rental of machinery. At that time, the construction sector was going through a deep crisis, similar to where we live now, and the rental of machinery rose as an interesting option for builders, who were able to maintain its level of activity without the need to undertake investmentor to take new risks, in a time of great uncertainty and difficulty. Therefore the rent became an opportunity that we knew to take to overcome the crisis reinforced and it allowed us incorporate new services (maintenance, assemblies, etc.) at the time that we estrechábamos our customer relationships.

What type of machine is currently in its fleet of machinery? And what have been their latest acquisitions?

ALCO has thirteen lines of business, of which four are very linked to the concept of 'machine': excavators, excavation, machinery and air platforms. In the first, customers can find excavators ranging from the 35 200 tonnes and with maximum ranges from 48 to 105 meters.

'Excavation' have wheeled and crawler excavators from 8 to 120 tons, mini excavators up to 8 tonnes, backhoes, loader of wheels or chain to 5.5 cubic meters, skid steer loaders up to 3 tons, dúmpers (articulated, rotating and hidroestatics) from 1.5 to 45.5 tonnes, and buldozeres.

In 'machinery' customers have with the lines of handling of loads (handlers and forklift trucks), equipment for concrete (mortar conveyors, vibrators, pumps of mortar, etc.); energy and compressors (generators, lighting towers, motosoldadoras, compressors and pneumatic hammers); compaction light and heavy; and finally pumping equipment cutting and drilling.

In aerial platforms, have access to scissors and articulated and telescopic baskets ranging up to 41 meters range.

The rest of the Alco business lines are scaffoldings, trucks, modular building construction, lifting, formwork, cranes, gates and útiles-herramientas.

The latest acquisitions for our machinery park include an autogrúa of 200 tons, a rotating manipulator of 21 meters in extent and 8 aerial platforms, articulated with ranges from 12 to 40 meters.

As for its customers, what is their main type of applicant company of machinery?

Given the variety of solutions that we do not have a single 'client type' profile, and our portfolio of clients have builders, rehabilitadoras, companies targeting the public work, the public administration itself and industries of all sectors (automotive)(, logistics, food, etc.)

In his view, what competitive advantages present rental versus purchase?

Renting allows you to enjoy the solution most appropriate to each case and pay for only as you use it. It is the best investment, because it guarantees economic performance for each euro spent.

With the Alco rental service you can cover all your operational needs to dispose of our entire range; accounts with the best team (with appropriate training and continuing training); you work with the 'most modern teams' which incorporate the latest developments; and you have the material wherever and whenever you need it, forgetting you store it, keep it and transport it. And all this while avoiding the risks associated with any investment purchase, the immobilization of resources involved, and the costs of financing.

After his experience in the sector, difficulties and what challenges are the most common in the rental of machines?

The main challenge is to incorporate more services and greater value to provide greater benefits to customers. The rent is a complex activity that requires the coordination of many resources (personal and material) and in which there are always opportunities for improvement.

The difficulty that we must overcome every day, is the convince our partners that the set of services, guarantees, capacities and commitments that we offer, set a value proposition that will allow to develop your activity with greater profitability and with the collaboration of a partner which support to meet their own challenges. That Yes, when we succeed in making ese interlocutor in client Alco, managed not only to entrust in us, but that also he push us every day to give the best of ourselves.

At the moment, do you think that there is an increase in the rental of machinery with the purchase?

In periods of uncertainty the rent always wins adepts, to enable to maintain activity without the need to take the risk of investments. However, the suspension of the activity for the current downturn, is much greater than that 'shelter' effect of the rent and the reality is that the rent also is dropping, especially since summer.

Finally, in the future, where it does that the sector will develop in the coming years?

Rental of machinery sector is still very atomized, and once you overcome the crisis is possible to continue seeing corporate moves to stabilize it, supported both by the need to grow, and generational being given in many companies in the sector, and that will bring a greater professionalization of managerial structures. These movements hope that they will serve to promote the associationism and the collaboration to establish a common regulation of the activity that benefits all the players: manufacturers, alquiladores and customers.

For the part of the development market will come from the optimization of the parks in rent, innovation in services, the loyalty of customers and diversification into other sectors of activity.

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