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The case for renting Percentages of firms choosing not to buy rarely used equipment has skyrocketed since 2011 and is projected to keep growing; several organizations also offering their fleets.
Additionally, in its survey of more than 70,000 business owners, CEOs, managers and procure- ment professionals, Purchasing.com discovered that between 2011 and 2014, rentals for compact truck loaders shot up 925 percent, wheel loader rentals skyrocketed 273 percent, and forklift rent-
By LIISA ANDREASSEN Correspondent
C onstruction equipment that is not being used costs money. It’s that simple. That’s why more and more mobile-based equipment rental apps are popping up all over and also why more construc- tion companies are not only renting other’s equip- ment, but renting out their own, too. “Whether it’s work on the Fort Armstrong building in Rock Island or smaller projects, like your own personal garden, renting equipment remains a cost efficient option.” According to the American Rental Association, the construction world is following a broader trend of contractors renting goods that they only occasion- ally use. The ARA estimates that nearly 50 percent of all equipment used on job sites today is rented, and it forecasts a growth of 37.6 percent in North American equipment-rental activity that could reach $52.3 billion in sales by 2017.
als jumped 90 percent. RENTAL COMPANY WEIGHS IN.
Andy Fliege, president of Rental Guys , a construc- tion equipment rental company for the Quad Cities in Illinois, says, “The third and fourth quarter this year, is going to show big increases in construction work in the Quad Cities. And, if everyone had to go buy their stuff instead of renting, that’s tough for them to do. There’s a large project coming – the 74 bridge – and to outlay that type of capital for such a project is difficult to do nowadays.” Revenue for companies like Rental Guys is expect- ed to grow over the next four years, according to the ARA. And, their equipment will help grow the community. “Whether it’s work on the Fort Armstrong build- ing in Rock Island or smaller projects, like your See RENTING, page 8
THE ZWEIG LETTER AUGUST 24, 2015, ISSUE 1117
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