Recent changes to occupational health and safety laws in Australia mean that the traffic management industry is undergoing rapid expansion. There’s a lot more to traffic management than “paddle pop men” with stop signs and walkie talkies.
The equipment used in the traffic management industry is in relatively short supply and is expensive – so many industry participants hire their equipment on as “as needed” basis. The problem is that everyone wants the same equipment because traffic management is required on more projects than ever before.
Our client builds heavy equipment for the traffic management industry and then hires it out to operating traffic management companies. Here’s how it works:
- The equipment costs $250,000
- The equipment is rented to a traffic management operator on a 3, 4 or 5 year deal
- The operator pays around $48,750 plus GST for a full year hire – that’s equivalent to 19.50% on the $250,000 capital investment
- The operator pays a levy to cover registration and insurance costs
- The equipment is depreciated by the owner
- The owner of the equipment ends up with a 17.68% return AFTER tax for the first 5 years of the equipment’s life.
- At the end of the contract, the owner gets the equipment back and rents it to somebody else
That is a fabulous return on any investment.
Like most businesses, our client has a finite capacity to finance inventory (all of his equipment) and that means an opportunity exists for investors to buy between one (1) and ten (10) traffic management equipment packages.
NOTE: This offer is strictly limited.
To find out more, complete the form on the Contact Us page.