Rental rates increased in the second quarter according to the latest quarterly rental update published by EquipmentWatch, with Q2 retail rental rates increasing in nine of the top 10 subtypes tracked compared to the first quarter. I.C. pneumatic tire lift trucks recorded the highest increase with an average hike of 12.7 percent, the report said. Rate gains were also strong with standard crawler dozers (8.64 percent); four-wheel-drive articulated wheel loaders (6.95 percent); and crawler mounted hydraulic excavators (4.16 percent).
The large increase dating back to the third quarter could show that the I.C. pneumatic tire lift trucks is in the highest demand of the 10 subtypes tracked. After large decreases from the fourth quarter of 2015 to the first quarter of 2016, both skid-steer loaders and electric self-propelled scissorlifts showed small signs of recovery from the first quarter through the second.
The largest three subtypes among medium to large equipment posted healthy rate increases from the first quarter to the second. Standard crawler dozers had the largest rate increase for the past three quarters rising almost 19 percent in weekly rates since the fourth quarter of 2015. Crawler-mounted hydraulic excavators and four-wheel-drive articulated wheel loaders also had steady increases, while single-drum vibratory compactors and telescoping boom rough-terrain lift trucks remained relatively flat during the past quarter.
Looking at all equipment types included in the analysis, the data suggests that larger equipment is in the highest demand.
The latest Rental Update includes regional analysis as well as discussion of the impact of changes in rental platforms in large national companies such as United Rentals and Herc Rentals as well as rental integration with software companies such as Texada and Point of Rental. Software that captures the live utilization of machines on rent, logistical software that allows users to maximize the efficiency of deliveries and pickups by using mobile devices to handle signatures, inspection photos and payments also is having an impact on rates according to EquipmentWatch’s analysis.
The report is based on data collected from 418 participating rental companies, covering 267 equipment subtypes, with 79,634 rates collected.
To download the report for free, go to: http://intel.equipmentwatch.com/rental-update-2016-q2-review/
