Rental’s popularity with contractors remains on the rise, according to Wells Fargo Construction’s 2008 Industry Forecast. The report, based on surveys of construction company executives in North America, includes results drawn from 1,130 telephone interviews conducted in the fall of 2007. The report’s rental overview determined that contactors will increase their use of rented equipment based on equipment needs and the lower costs associated with renting compared with purchasing.
Excavators top list for 2008
Contractors reported low equipment usage as a primary reason for renting – 54 percent of the survey participants say they rent seldom-used equipment. Excavation equipment is at the top of the most-rented list for 2008. Twice as many contractors surveyed say they will rent excavating equipment this year as compared with last year’s Wells Fargo survey. Although contractors report 81 percent of the equipment they use will be their own, 19 percent of those surveyed say they plan to rent or lease equipment in 2008, compared with 14 percent of respondents in the 2007 Forecast.
Contractors prefer large rental companies
Although the Forecast found distributors have competitive prices in the rental market, contractors continue to prefer using national rental companies, saying they expect to use large companies for 68 percent of their rental business in 2008. Although used less frequently, distributors reported their share will grow from 11 percent in the 2007 Forecast to 14 percent this year.
Will the percentage of your equipment needs met by leasing or renting change in 2008?
No Change 79 %
Increase 13 %
Decrease 8 %
Source: Wells Fargo Construction Industry Forecast 2008, Rental Overview.
What type of equipment do you expect to rent most often in 2008?
Equipment type/Percentage of contractors who plan to rent
EXCAVATING EQUIPMENT 20%
CRAWLER DOZERS/WHEEL DOZERS/TRACTORS/BULLDOZERS 10%
FORKLIFTS/FORK TRUCKS 10%
SMALL TOOLS 9%
ELEVATING WORK PLATFORMS/SCISSOR LIFTS 9%
COMPACTION EQUIPMENT 4%
CONCRETE EQUIPMENT 3%
JACKHAMMERS/AIR HAMMERS/ELECTRIC HAMMERS 2%
Base: 214 contractors who plan to rent equipment
Source: Wells Fargo Construction Industry Forecast 2008, Rental Overview