A recent survey of equipment rental providers facilitated by the American Rental Association (ARA) indicated that most equipment rental companies are planning to increase their spending in 2021. After the unprecedented challenges presented by the global health emergency that dominated the headlines in 2020, this is welcome news for a variety of reasons. A staggering 71% of respondents to the survey indicated they planned to increase their spending, a sign of an impending bounce back for the industry, and a strong one at that.
“ARA developed this forecast in response to our manufacturer and supplier members,” said ARA Vice-President Tom Doyle. “This type of information has been the number one request, especially after the last year.”
The report broke down 29 specific product categories, ranging from air compressors to HVAC units to escalators. Respondents expected double-digit growth in 14 of those categories, with only two categories expecting shrinkage.
The forecast provides details, including the percentage of respondents with an item in their fleet, the percentage of current owners who plan to purchase new, the percentage of new purchases related to fleet, the percentage of 2021 purchases already ordered, the percentage of planned fleet disposal and the percentage of fleet growth. The survey focused on independent businesses, eschewing larger, publicly traded rental companies, in order to get an accurate idea of what their members were facing and planning for.
With an increase in purchasing the need for a modern, agile ERP solution grows even more apparent. With Rental360, built within the Acumatica framework, Rental Companies can achieve greater control over their margins, streamlined and efficient operations across all phases of the business, and greater success even in the face of rapidly-changing circumstances. Rental360 helps its users leverage their full fleet of equipment for its entire life-cycle, from purchase to rental, including the ability to track maintenance history, all the way to its final retirement or sale.