A recent report by Purchasing.com titled, “Tech Innovations Drive Increases in Heavy Equipment Leases and Rentals” determined renting heavy machinery of all types is on the rise, and purchasing is down. The study surveyed over 71,000 professionals directly related to the purchase of equipment regarding their preferences of renting vs leasing backhoe loaders, bulldozers, compact track loaders, excavators, rough terrain forklifts, skid steer loaders, and wheel loaders and most categories showed a high increases of renting versus purchasing.
Reasons for the rise in renting include the desire to test equipment before buying, only needing the equipment for a short period of time, and the ability to be flexible when new technology is released. This trend is not expected to trail off either, as companies who were on a spending freeze during the 2009 recession are starting to need more equipment, as well as the continued uptick of construction projects.
So, how exactly can you and your company profit from this trend? Rachel Burger over at the Construction Data Company suggests renting the depreciating equipment that’s idly sitting by, citing Generation X’s increasing use of sharing services, such as the taxi alternative, Uber, and the hotel substitute, AirBnB. There are a couple companies currently assisting contractors in renting their own equipment, such as MuniRent, for public agencies and Getable, whom connects suppliers to contractors looking to rent.
How the Generation X Sharing Economy is Changing Construction | Construction Data Company