The rental industry is a growing industry not just in Australia, but the entire world. With more businesses opting to rent out equipment, rental businesses in different industries are seeing a demand for their services.
The construction industry is one such industry that heavily relies on equipment rentals to improve their work, but this wasn’t always the case. Renting out equipment wasn’t the norm many years ago, but with the rise of rental businesses and business rental solutions, also called rental management software, things have changed.
If you’re new to the construction equipment rental business, it’s important to know where this industry stands in terms of renting out equipment. Let’s explore.
How the construction rental industry has changed
Here’s a look at how the construction industry has changed over the years:
During the early years of the construction equipment rental industry, renting equipment was usually seen as a last resort for businesses. In the past, renting was considered a backup plan in case a certain piece of equipment broke down or was too old to be useful.
However, as time passed, the construction industry started to see the benefits of renting out equipment instead of owning it. This has made equipment rentals a norm for many construction companies worldwide.
The change from ownership to renting
With the cost of owning construction equipment increasing, many construction companies are now opting to rent out the necessary equipment rather than purchasing them.
Today, the market for construction equipment rental is growing and is estimated to reach $106.1 billion in 2024—a significant increase from $100.5 billion in 2023.
There are several reasons why the construction industry has turned to renting equipment that goes beyond the need to eliminate the high upfront cost of buying equipment. Let’s take a look:
Low maintenance costs and storage requirements since maintenance will be handled by the rental company and the storage requirement for rental equipment is temporary.
Ability to quickly adapt to changing requirements and replace obsolete equipment instantly with new and more advanced construction equipment.
Gain access to new and innovative construction equipment which may be too expensive to purchase.
The advancement of rental technology
Today, business rental solutions, or rental management software, have taken centre stage. This software is designed to help construction equipment rental companies streamline their operations, increase efficiency and cut overhead costs.
Nowadays, rental businesses, including those that offer construction equipment for rent, have been introducing online platforms that allow their clients to reserve equipment, make online payments for rentals and be informed of equipment availability.
The rise of telematics
Telematics is now an integral part of rental management systems. Its purpose is to give insights into the usage of their rental equipment.
Thanks to telematics, many construction equipment rental companies can cut down maintenance costs and potentially increase the lifespan of their equipment.
With the help of telematics, rental businesses can also optimise their rental fleet, provide better customer service and reduce downtime.
The drive towards sustainability
Sustainability has become a major concern in the equipment rental industry with studies revealing that construction equipment alone accounts for 1.1% of global emissions.
As a result, many construction companies are now opting for more environmentally friendly options, such as renting out electric or hybrid construction equipment to keep emissions low.
These types of equipment may be more expensive than full fossil fuel-powered counterparts, making renting a much cheaper option for construction companies.
What business rental solutions can do for your business?
Here’s a look at some of the benefits of incorporating rental management software into your business:
Improved inventory management
Rental management software gives construction equipment rental businesses the ability to manage their inventories more efficiently.
The software can track rental inventory levels, alerting you when stocks get too low. This helps prevent customers from booking equipment that’s no longer in stock.
Optimised equipment utilisation
Some of your rental equipment may see more use than others. In this case, keeping a piece of equipment that isn’t popular with customers can be a waste of money.
Rental management software can help you identify which construction equipment is in demand so that you can prioritise maintenance for the equipment. This can give you a better overview of the operating costs of your rental equipment.
Increase profitability
If a certain piece of equipment isn’t rented frequently, it won’t be profitable in the long run.
Business rental solutions can help you identify which construction equipment gets hired out by customers the most so that you can increase your inventory levels and promote them to customers.
Discover the perfect business rental solutions
If you’re looking for the ideal rental management solution for your business, speak with a rental software provider.
Not only will they help you choose the right rental software solutions for your business, but they will also help you become familiar with it so that you can get the most out of it.
Experience the benefits of Rental Software for your construction rental business today.