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    Rental Trends And Predictions For 2004

    Sept. 28, 2010

     

    The upswing in the economy is anticipated to have a ripple effect throughout the rental industry in 2004, and will undoubtedly affect the way end-users acquire rental equipment. The American Rental Association (ARA) asked rental dealers and industry experts to identify the latest rental trends and offer predictions for 2004.

    Increased equipment purchases by rental dealers. Roughly 42 percent of 700 rental dealers surveyed by ARA report that they plan to purchase more equipment in 2004 than in 2003. The improving economy and tax relief legislation are driving the turnover of aging fleets. The anticipated renewal of federal transportation legislation influences predicted turnover; demand for rental equipment should increase upon passage of this legislation.

    Slight increase in rental rates. Rental dealers predict rates will inch up this year, perhaps by as much as 5 percent, although this is varied by region. Rental-industry consultant Dan Kaplan of Kaplan & Associates predicts that rates could go up as much as 7 percent.

    More focus on professional training of rental dealers and employees. Rental dealers are putting a priority on service that goes beyond simply service with a smile. An ARA survey of 500 rental dealers found that 55 percent of them plan to spend more on employee training this year. This training focuses on a multitude of topics, from product use and safety to telephone techniques.

    Increased staffing of rental operations. In the same survey of 500 rental dealers cited above, 70 percent of the respondents plan to hire more employees this year than in 2003. Roughly 61 percent said they would hire more full-time employees, and 34 percent predict hiring additional permanent part-time employees.

    Increased use of theft-prevention systems, especially GPS. ARA Insurance Services reports that theft continues to rise both from rental yards and from jobsites. As GPS prices decline and units become easier to install, more rental dealers are electing to use this technology not only as anti-theft devices but also as a way to monitor equipment usage.

    All Seasons Rental

     

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    Elaine Barreca, Public Relations Manager, ARA

    Expect well-trained rental dealer associates. According to an ARA survey of 500 rental dealers, a little more than half of dealers will be investing more on employee training this year than they did in 2003.
    How to Find the Right Rental Dealer
    • Hours of operation. The rental dealer's hours should coincide with the time you will need to acquire rental equipment.
    • Product support. Most services are typically included in the rental agreement. Check the store's service policy and response time with regard to equipment breakdowns. Ask when the equipment was last serviced.
    • Delivery. Will the rental dealer deliver equipment to the jobsite if necessary?
    • Rates. Check for differences in rental rates regarding duration of the rental period and frequency of equipment rented.
    National Rental Month Promotes Benefits

    April is National Rental Month, and ARA will be targeting contractors and other equipment users with magazine ads and radio commercials promoting the advantages of renting. Whether in the truck, shop, office, or at home, more people than ever before will learn how renting is "The Smart Way to Get Things Done." ARA's marketing campaign will deliver the message in radio and in print to more than 65 million consumers and virtually every construction-equipment fleet manager and event professional.

    The ARA's campaign will include advertising on Westwood One, the most comprehensive family of radio networks serving 50 million listeners that tune in to nearly 1,500 affiliated stations across the country. ARA spots also will air on Paul Harvey programming carried on English-speaking stations by Sound Source Networks, reaching 15 million listeners across Canada.

    Perhaps nowhere does renting benefit the bottom line more than in construction. And the ARA is sending that message to construction firm decision makers with a comprehensive advertising schedule in the industry's top publications: Construction Equipment and 15 regional magazines published by Associated Construction Publications.

    The ads educate readers that renting equipment—especially equipment that is not used all of the time or equipment used at remote construction sites—offers substantial savings, increased profits and less hassle.

    All of the National Rental Month ads refer to ARA's RentalHQ.com website. RentalHQ.com is the world's largest online rental-store locator. The site breaks down searches by geographic area and product desired. And it's one way for equipment managers to quickly find a select pool of rental dealers.

    For more information about ARA, go to www.ARArental.org or call 800/334-2177.