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In a recent survey by industry specialists Manfredi & Associates published in Rental Equipment Register,  indicators suggest that US equipment rentals will surpass $32 billion in 2013; which is a whopping 16 percent increase over 2012.

Factors fueling Rental Industry Growth

Three factors are citied in the study for the double-digit growth:

  1. Continued economic uncertainty
  2. EPA emission regulations (effective January 1, 2012)
  3. Potential tightening of available financing for new equipment and fleet purchases

These three factors are likely to result in more contractors choosing to rent equipment rather than investing cash into fleet and equipment purchases.

Basis of Forecast Estimate

According to the study:

The U.S. rental market for construction equipment reached approximately $28 billion in 2012. Based on underlying market trends, Manfredi & Associates believes the total market will grow to more than $32 billion in 2013 — a forecast based on its estimate that there will be approximately 14,000 rental locations in 2013 and the average revenues per location will be slightly more than $2.3 million.

Using the $2.3 million average revenues per location, how does your rental business compare?  Are you able to tell whether you are on track to take advantage of improved business?

If you are uncertain about the state of your business, it may be time to invest in a software solution that gives you the data you need to make strategic business decisions and ensure the profitability of your operation.  And you need a software solution developed specifically for the operational needs of the equipment rental industry.

Accsys Solutions can assist you in implementing the software that will give you a comprehensive view of your rental operation.  With rental operational and accounting software from Adagio, you’ll gain complete control of contract, invoicing, records and reporting.  We’d be happy to answer any questions you may have.

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