Renting of equipment continues to appeal for several reasons, particularly if it is needed for just a few days, weeks or months.
Is there a skid steer or excavator sitting idle in the yard? Rent it. That probably should be the mantra of every construction equipment-owning businessperson in North America. The demand for rental equipment is growing. Rental prices are heading up. Why not jump in the market?
Renting of equipment continues to appeal for several reasons, particularly if it is needed for just a few days, weeks or months. The cost of a new skid steer loader can range from $15,000 to $50,000; a full-sized excavator can cost 10 times that much. The introduction of expensive Tier 4 emissions technology has ramped up those prices. Suddenly having to spend just $50-100 an hour or $1,000-3,000 a month for a skid steer is a pretty good deal.
Besides cost, the still-not-vigorous construction market poses risks for any equipment buyer. The volatile—at the moment, collapsing—oil and gas drilling market is a cautionary tale for every equipment owner. With the Federal Reserve finally letting interest rates float upward, seedlings of worry about inflation have begun to sprout in manager's offices.
Given all that, the long successful run of rented equipment seems set to continue. The American Rental Association is predicting annual growth rates exceeding 7 percent for the next three years. Rental prices over that period are expected to rise by 1.4 percent a year, which is faster than the previous three years. New vigor in the housing construction sector, however weak it might be, is expected to offset the oil and gas industry's equipment slumping rental demand.
So if construction jobs in your area are all taken or the local economy isn't yet supporting new construction, let your equipment crank up some revenue. Get out the word that your machine is available. If you have a small fleet sitting idle, see if you qualify as a vendor on Getable, the California-based equipment-rental app that works like Uber for car-renting. Until your business picks up, you might as well scoop up some cash with your equipment.