Not only that but The American Rental Association’s (ARA) five-year forecast estimates average annual growth rate of 4.3 percent resulting in revenues to top $56 billion in 2020.
Scott Hazelton, Managing Director, IHS Markit, the forecasting firm hired to produce the ARA Rental Market Monitor report; had this to say when asked:
Do you see a change in policy coming in regard to infrastructure spending in the United States? It took quite some time to pass the Highway Bill.
Hazelton’s answer: It is very likely that we will see an increase in infrastructure spending. Unlike some proposed policy changes, this enjoys the backing of both political parties as well as the support of the population. There are a number of details to be worked out, such as how big the package will be, how it will be financed and what will be considered priority projects.
Who are the stakeholders in the Equipment Rental Industry?
Direct players include Equipment Producers (Equipment & Parts) on the one hand and Equipment Rental Companies on the other.
Equipment Rental Companies’main business is to rent small to medium-size pieces of equipment; including contractors’ and builders’ tools and equipment for a short period of time. Listen to Scott Hall President of BlueLine Rental describe in his own words why they are more than a Rental Equipment Store (Exclusively offering services based on Industry leading Volvo Equipment Supplier). They differentiate with these principle business values:
- Fast. Safe. Reliable.
- Committed to safety
- One of the youngest fleets
- And they take pride in supporting veterans.
The number 1 ranked Equipment Rental Company is:
UNITED RENTALS (1) Stamford, Conn. Michael Kneeland www.ur.com.
Has $ 5bn in revenue (2016) and has 968 number of outlets. Essentially business was flat year over year, but they made big splash in January ’17 with acquisition of NES Rentals (revenue totals don’t include NES) expanding United’s industrial rental strength, especially on East Coast, Gulf states and the Midwest. Specialty divisions — pump, power and trench safety — were the fastest growing niches. Started well this year and expects to top $6 billion in revenue as customers seem more optimistic. Oil-and-gas rentals looking better as 2017 begins
There is tremendous innovation taking place in this industry.
Rental Equipment Register announced their list of Innovative Product Awards for 2016.
Most noticeable fact is 5 software solution providers made it in the top 10 list. They are:
- Orion Software; Cloud Rental CRM: Allows rental businesses to manager their customer relationships, contacts, account information and transactions in one central system
- Alert Management Systems; Document Center: Manage all documents and associated processes from one location.
- Texada Software; Fleet Logic: By pairing a web-based dispatch screen with an easy to use mobile app, teams will work faster, with more accurate information and communication.
- Baseplan Software; Rental Mobility Application: Rental Mobility application – a new technology that offers complete rental counter operations from the very palm of your hand
- Corporate Services; Basis: helps you handle all aspects of your business processes from purchasing and maintaining your equipment to dispatching and invoicing your customers.
Why ASC is your partner of choice to deliver exceptional solution for Equipment Rental Companies.
Please contact Jim Carroll, President Advanced Solutions and Consulting (ASC); jcarroll@solutionsco.com 2017 MVP Award holder for Acumatica leading provider of Cloud Based ERP solutions. He will be glad to recommend and incremental software deployment path for your company to maximize profitability and improve cash flows.