by Nisma Shakil, Content Marketer at EZRentOut
To thrive in a rapidly changing environment, heavy equipment businesses have to be updated about the latest trends in the industry. Following the pandemic, the market is driven by technologically advanced equipment, increased government funding, and strong competition between software providers.
These trends are discussed in detail below:
1. COVID-19 impact: Positive turn for the rental industry.
The heavy equipment industry adapted to the new normal amidst uncertain COVID-19 waves and lockdowns. The strict operational policies imposed the shutting down of physical stores and impacted construction cycles. Closing of stores at unexpected times meant delays in equipment delivery and work completion.
The pandemic has prompted heavy equipment businesses to rent out rather than buy equipment. This is because rental rates are less costly than investing in expensive gear. Rental rates can be charged on a need basis, for example, forklifts can be rented out for days, weeks, or months whereas purchased equipment may sit idle on days when it is not in use, which can reduce productivity.
Renting out equipment has helped to manage construction cycles. Businesses can rent out equipment for the operational period and then return during lockdowns. This can benefit the business in many ways: 1. Rental rate charged for the days equipment is used, 2. No idle equipment during lockdown 3. Construction work at its optimum.
The impact of the pandemic has led to a positive turn for the rental industry. This trend will continue to increase due to the hybrid work model adopted by businesses. The shift to managing operations from home has further increased the use of heavy equipment rental software, wherein all important details can be managed from workflows to rentals. The ease of using the software has provided a solution to continue business operations effectively. It is expected that the U.S. equipment rental market will grow at a CAGR of 5.47%, for the time period of 2022-2026.
2. Rising demand for tech-savvy construction rental equipment.
Technological advancements are transforming the business sector with safe and convenient tech solutions. Heavy equipment businesses are more prone to workplace accidents, thefts, and labor injuries, given the complex machine usage and harsh working environment.
This is why construction businesses are more focused on using “smart” safety hats, vests, and IoT-based alarms and detectors. Smart caps and vests have wearable mobile technology that can monitor the fatigue levels of workers. The alarms turn on as the worker’s alertness level decreases. Instant incident alerting to cloud-based software is provided by IoT-based connected safety solutions, allowing for quick accident avoidance before it happens.
Cloud-based software can be easily connected to gather data from monitoring devices and provide real-time information to managers. The software can identify trends using GPS smart sensors and collect data for managers to take action on alarming trends.
As workplace hazards increase, it is necessary to adopt safe and tech-savvy protective equipment. The heavy rental equipment industry is moving toward protective wearables and sensors to minimize the risk of on-site accidents. These types of protective equipment and sensors are connected to heavy rental equipment software that can help provide real-time information, track the fleet 24/7, and comply with safety regulations without any hassle.
3. Government spending drives heavy equipment rentals.
The increase in government investments in residential, non-residential, and infrastructure sectors mean more construction projects, and in turn, increasing demand for heavy construction equipment.
Government spending is likely to expand the heavy equipment industry due to various growth opportunities. There is evidence of an increase in the construction of multi-family houses due to a growing trend toward nuclear families, as well as investments in expressways, metros, highways, and roads due to increasing population and urbanization.
The demand for heavy equipment rentals is also increasing with these upcoming construction projects. The expected high initial cost of new construction machines encourages contractors to shift towards renting heavy equipment. Also, the availability of a wide range of technologically advanced equipment on rent is another reason for renting rather than buying equipment.
As a result, it is becoming less practical for rental business owners to track rented out construction equipment with the increase in upcoming construction projects. This has accelerated the trend of adopting heavy equipment rental software to automate daily tasks and seamlessly track rented out equipment.
4. Competition among software providers.
The heavy rental equipment software market is highly fragmented where there are multiple players competing against each other. High competition means software providers focus more on providing features that help businesses operate efficiently.
The lack of modern technology is a barrier for many businesses. This is why they are adopting heavy equipment rental software because it offers cutting-edge functionalities like setting up alerts, assigning tasks, and tracking rental status and fleet availability which helps businesses flourish in rapidly changing environments.
There will likely be a greater need for heavy equipment due to an increase in construction projects. To meet the growing demand, rental businesses would need to expand their fleet and construction equipment. In order to manage various projects efficiently, contractors would also require greater visibility into equipment tracking.
This would increase the demand for heavy equipment rental software that could easily give users visibility and control over their equipment’s location. As a result, this enables the rental software market to grow and serve more customers in the future.
Following heavy equipment rental trends can help businesses adapt to changes in the market, anticipate customer needs, and propel themselves forward.
Nisma Shakil is currently a Content Marketer at EZRentOut, the leading equipment rental software company, where she particularly enjoys writing about technological advancements, and trends and actively contributes to similar guest posting opportunities. She also enjoys capturing scenic beauty, sunsets at beaches, and movie times with family.