RENTALS CONTINUE GROWTH TREND
In a survey of over 70,000 business owners, CEOs, managers and procurement professionals between 2011 and 2014, Purchasing.com found that heavy equipment rentals continue to increase across the nation, with an increase of 75% from 2013 to 2014.
Even larger increases included:
- Rentals for compact truck loaders shot up 925%.
- Wheel loader rentals skyrocketed 273%.
- Forklift rentals jumped 90%.
The study confirmed that the outlook for the construction industry has reached its highest point since the recession in 2009. This growth is driving an increase in heavy equipment use, but that does not equate to equipment purchases.
Companies as well as individuals report that they are making use of multiple options when financing heavy equipment, including leases and rentals. Some reported renting as part of their purchase evaluation process.
Rentals offer more flexibility.
Leases often include additional fees or mandatory contracts for maintenance and repairs. They can also include penalties for withdrawing early from the agreement. The possibility of added costs explains, at least in part, why the lease options have lost ground to rentals, which allow users to simply return machines when they no longer need them.
Rentals deliver quick financial benefits.
As a project-based industry, construction equipment is left idle until it’s needed for the next project. Naturally, doing so only leads to equipment depreciation. In addition to their lower cost per hour, rental fees are often immediately deductible expenses, so companies can realize a double financial benefit.
Rental machines are also a great way to try out new technologies, tools and features. Talk to your Cat® dealer about the benefits of renting a machine for your next project.