The Relentless Rise of Rental

A year ago, The Underground reported that construction equipment rental was increasing in popularity. At that time, it had been on a steady climb for six consecutive quarters.

Four quarters later, the news is he same: renting equipment is becoming attractive to more individual consumers, independent contractors, and even large construction outfits.

There are many reasons for the trend. For one, renting equipment saves the hassle of storage and maintenance. Then, instead of paying a huge chunk of your equipment budget every month to own, you can pay a flat fee to rent for a day or week, and then you're done.

But probably the greatest benefit of renting equipment is versatility. What if you're asked to bid on big job with a tight deadline that you can't possible meet with your current fleet? Would you withdraw your bid and say, "Sorry, I can't meet the deadline"? Or would you go to your nearest equipment dealer or rental store to get what you need to land the job?

Rental: "less investment, less risk."
These days, it's not just construction equipment-HDD units, trenchers and excavators- that are being rented. Understanding the changing times, rental companies are laying in a wider variety of tools and equipment to keep up with growing contractor demand. In an article published in the 2006 Equipment World Rental Locator Guide, Ken Hughes of the ARA stated that more general tools and light equipment - aerial work platforms, generators, mini skid steers - have become rental company staples, which was not the case five years ago.

The difference between now and then? The economy, which has peaked, bottomed out, and then climbed back to relative stability during that time. Many people who lost their jobs during the downturn have emerged as entrepreneurs with plenty of drive and expertise, but not necessarily a big budget for equipment.

The economy has also created more do-it-yourselfers, people who five years ago would have called a landscape or other construction company to have work done. Now they're landscaping their own lawns, installing their own sprinkler systems, and taking on other jobs that require the equipment of a general contractor. And the most economical way is to rent.

Hughes says that renting on a job-by-job basis gives customers more job potential with less investment, and therefore less risk. It's also a great way to try before you buy. And one doesn't need to look far to find an equipment rental store: the 2006 Rental Locator Guide lists more than 7,500 throughout the US.

So, when opportunity knocks and your current fleet doesn't meet all the job requirements, consider doing what a growing number of companies are doing: borrowing from their neighnor, i.e., their neighborhood equipment rental store.

source for this article: Equipment World Rental Locator Guide 2006. The Underground Spring 2006