The equipment rental industry experienced an unprecedented 11% growth rate in 2022 with continued growth projected for 2023 through 2026 supported by the $550 billion federal investment in U.S. Infrastructure.
Rental companies are really well positioned to be able to take advantage of that investment and growth as long as they have the right people, as well as the right systems in place.
Unfortunately, there are three key challenges that equipment rental companies need to overcome in order to grow:
Companies are experiencing revenue leakage from under-utilized assets
Equipment rental organizations that aren’t getting the maximum usage out of their equipment or are leaving opportunities for additional rental income from existing contracts on the table are at risk of losing valuable revenue.
Increasing opportunities hampered by labor shortage & equipment shortages
Over the last couple of years, many equipment rental companies have experienced equipment shortages. The supply chain was so broken and the time it took to be able to get things was just brutal. Although it’s gotten a little bit better, it’s certainly not back to where it used to be a number of years ago.
As a result, it’s more important than ever to stay on top of your equipment. Make sure it is down as infrequently as possible. Repair it as soon as possible and do the preventive maintenance to ensure that it doesn’t break down.
Additionally, everybody in the country is dying from labor shortages. We’re all having a really hard time finding anything from experienced mechanics, to drivers, to even warehouse people or yard folks. So now, more than ever, it’s important to get as much productivity out of our existing people that we can.
Current solutions may WORK today, but are not helping you maximize your business
We’ve all seen how quickly technology moves. Especially over the last few years with COVID and how things have changed in our lives, where more things are done online. If you don’t stay on top of the technology, your competitors who are keeping pace with technology advancements are going to go right by.
Elements of Modern Technology Tools that Can Attract, Retain, and Make the Most of Talent
Easy to Use
With so many intuitive apps available, having a business management system that isn’t easy to use can be a deal breaker for today’s workers. A modern equipment rental ERP will empower your people with usability that encourages adoption.
Easy Reporting Without IT
In the past, business data used to be hidden and employees had to reach out to the IT department and them to create a report. Modern solutions empower people to generate their own reports through a variety of tools leveraging real-time data.
Remote Accessibility & Mobility
Whether they’re spending time in the field or working from home, there are more and more reasons why people are doing business on their phones or need access from anywhere, anytime. Having complete remote access and 24/7 access when you’ve got multiple locations is essential. Modern, mobile solutions can help you feel comfortable that all of your assets’ data is being updated and available in real-time, so you always know where the equipment is.
Leading Technology & Ongoing Development
When selecting new technology, you need to take into consideration not only how the solution will help your rental organization in the short term, but also how it will be developed to continue to support your growth long term. Moving to a new systems requires a lot of time and effort so it is important to choose a system that has the human and financial resources to continue to develop the program to keep pace with changing technology.
Elements of Modern Technology Tools that Can Optimize your Equipment from Purchase to Retirement
Real-Time Visibility into Availability & Procurement
Real-time visibility into your equipment availability and procurement is the only way to do business quickly and service your customers in way that can meet or exceed their expectations.
Equipment Lifecycle Management through Equipment History and Asset Management
We want to be able to see everything within the assets life cycle from the time that it gets purchased, through every single time it goes out the door, through all the preventive maintenance, to the depreciation that’s been incurred. We want to be able to see all that in a single place.
Maintenance & Service Usage Tracking
A modern solution will empower you to track your maintenance and know when is the next one is due whether it is based on the number of miles, on number of hours, or another metric.
A lot of the current technology fits telematics or GPS systems where that usage or mileage information is always available and we want to be able to get that integrated as soon as possible.
Mobile Delivery Management & Route Optimization
Everybody these days is becoming more and more dependent upon their phones. Therefore, it’s essential that a modern solution provide complete mobile capabilities, especially to enhance delivery management and routing to make the most of your employees time in the field.
Rental360 is just such a modern ERP solution for equipment rental companies. Learn more in this on-demand webinar.