The effects of the coronavirus (COVID-19) are significantly impacting the equipment rental industry.
According to a survey taken the week of March 16 of the American Rental Association (ARA) membership, rental revenues are declining and are projected to significantly deteriorate in the coming months.
Equipment rental down
The survey results representing construction/industrial and general tool/DIY members indicate a concerning economic impact. As of March 16, 37 percent have indicated no revenue loss, 32.92 percent experiencing up to 15 percent revenue loss, and less than three percent reporting loss of more than 60 percent of rental revenue.
“This is a dire time for our industry," said Tony Conant, CEO of ARA. "We’re putting the needs of our members in the rental community first. ARA and ARA Insurance have put initiatives in place to ease the financial stress on our members as it relates to membership dues and insurance premiums. Our goal is to continue assisting our members and keep them informed on resources that are available to help them manage through these unprecedented times.”
Some rental operations have temporarily closed, but those that remain open indicate that they are taking every precaution to protect employees and customers by implementing recommendations from the Centers for Disease Control and Prevention (CDC) and extra cleaning and sanitizing of equipment.
Many rental operations remain open in order to provide necessary equipment and services for customers that continue work. Also remaining open are those operating in the event-rental sector, providing tents, tables, chairs and other items needed for drive-through and pickup areas for restaurants, grocery stores, government agencies, and more.
Weekly surveys for equipment sector
ARA member surveys will be deployed weekly in effort to continually monitor the impact the virus, legislation, regulations and social distancing are having on the rental industry. More information on coronavirus (COVID-19) can be found at ARArental.org.
Source: American Rental Association