Stimulus Spending, Inflation Affect Fleet Plans

May 7, 2024
Wells Fargo report highlights rent v. buy factors.

Stimulus spending will drive demand for construction equipment over the next several years, affecting not only new-equipment sales and availability but also the rental market, according to Wells Fargo.

The report suggests the equipment users keep tabs on rental rates and the cost of new equipment.

“Currently, as many dealers (and rental companies) have aged fleets given the lack of new equipment, rental rates have not increased at the same rate as new equipment coming from the OEMs,” the report states. “However, the combination of strong demand and aged equipment has resulted in dealers achieving a very high return on investment in their rental fleets. With inventory availability improving and dealers beginning to refresh their rental fleets, there will need to be significant appreciation in rental rates to support the higher acquisition cost of new equipment being added to rental fleets.”

About the Author

Rod Sutton

I have served as the editorial lead of Construction Equipment magazine and since 2001. 

Our mission is to help managers of heavy equipment and trucks to improve their performance in acquiring and managing their fleets. One way we do that is with our Executive Institute, where experts share information and ideas that will enable equipment managers to accurately manage equipment costs so that they can deliver the optimum financial benefits to their organizations.

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