why rent and who to rent from
DISCOVER RENTAL A guide providing basic information on construction equipment rental to any person interested in getting familiar with the benefits of rental
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CREDITS CONTENTS BY Jörg Bachmann, Chair ERA Promotion Committee Michel Baumgartner, ERA Gian Luca Benci, Assodimi Asif Latief, A-Plant Michel Petitjean, ERA Murray Pollok, KHL Group Patrick Rizzo, Loxam with the advice and support of the Members of the ERA’s Promotion Committee
GRAPHIC PROJECT BY alias2k.com
EDITION May 2011
RETAIL PRICE 10,00 €
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why rent and who to rent from
DISCOVER RENTAL
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EXECUTIVE SUMMARY
The European Rental Association (ERA) has written this ‘Discover Rental’ gu
about equipment rental. It is targeted primarily at contractors, industrial com
services, but it will also be of value as a rental ‘primer’ for government bodies
WHY RENT Rental helps companies reduce their fixed costs (including reducing / maintaining headcount) and minimises the financial risks of owning and operating equipment fleets. By renting rather than owning, the user only pays for equipment when it is needed. Rental reduces the ongoing costs that come with equipment ownership, including maintenance, in-service inspection, repair, transportation and storage. Rental allows companies to cope with peak workloads without having to invest in extra equipment. It represents a low-risk way of obtaining equipment when market conditions are uncertain and allows companies to enter new markets or sectors without onerous upfront investments in machinery. Capital that would otherwise be tied up in equipment can be channelled into a company’s core business. Rental provides peace of mind: rental suppliers are responsible for providing equipment that complies with regulations and is properly tested and certified.
WHAT CAN BE RENTED? Equipment available for rental is remarkably diverse, spanning earthmoving machines, hand-held power tools, generators, site cabins, aerial work platforms, mobile cranes, heating and cooling equipment, forklifts, site toilets, traffic safety equipment and falsework, formwork and shoring equipment.
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EXECUTIVE SUMMARY
uide for anyone interested in learning more
mpanies and other potential users of rental
s and other institutions.
HOW TO CHOOSE A RENTAL COMPANY? Choosing a rental supplier that operates close to a customer’s sites reduces transport costs. When renting small equipment, this proximity determines the choice of the rental company. The fleet inventory should guarantee the immediate availability of equipment. Having relationships with a number of rental companies rather than a single supplier provides more guarantees. The rental rate or price is the easiest thing to compare between suppliers but quality of the equipment provided, electricity and fuel consumption or included service are also important factors to be considered. Rental companies will offer particular pricing packages. Special offers for the weekend or long-term rentals can make a supplier more attractive.
EQUIPMENT RENTAL INDUSTRY
A SHORT HISTORY Equipment rental has a relatively short history – it started to develop in the 1950s – but has now become a multibillion Euro business supplying a wide range of construction and industrial equipment for customers primarily in Europe and North America. In Europe alone there are over 16,000 equipment rental companies. Equipment rental is now growing quickly in other areas of the world, including the Middle East, Latin America and Asia.
A SUSTAINABLE OPTION Rental is a fundamentally sustainable activity. It maximises the utilisation of equipment and reduces the requirements for every business or individual to own equipment. Many rental companies go beyond what the law or public procurement regulations require by complying with international standards such as ISO 14001 for environment management.
MORE INFORMATION The European Rental Association (ERA) publishes a range of useful material on its website (www.erarental.org), including an online ‘Rental Calculator’ and sample General Rental Conditions for Contract. In addition, there are rental market survey reports available for purchase.
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index of contents
01 02 03 04 05 06
intro
RENTAL: A SHORT INTRODUCTION
Chapt.
COST BENEFITS OF RENTAL
Chapt.
OPERATIONAL BENEFITS OF RENTAL
Chapt.
WHAT CAN BE RENTED
Chapt.
HOW TO CHOOSE A RENTAL COMPANY
Chapt.
RENTAL. A SUSTAINABLE OPTION
Chapt.
CONTRIBUTION OF RENTAL TO THE OVERALL ECONOMY 7
INTRODUCTION
•
RENTAL: A SHORT INTRODUCTION Rental has become, in industrialised countries, an essential way of addressing construction equipment needs. 8
INTRODUCTION
•
RENTAL: A SHORT INTRODUCTION
T
his booklet focuses on issues grouped into six chapters describing what rental is about and what should be considered when selecting a rental company. It also describes how rental companies can help their customers save money, outsource work and responsibility and thus focus on their core business, while providing a sustainable and environmentally soundoption for fleet management. Finally, as rental is
not just about equipment but also about service, a chapter of this guide also outlines the services rental companies can provide beyond merely delivering machines and equipment.
ABOUT THE SUCCESS OF RENTAL Rental has become, in industrialised countries, an essential way of addressing construction equipment needs. Started in the UK soon after World War I, the equipment rental market underwent strong development in North America after 1950. Today, rental is an integrated part of the equipment distribution channel, which includes sales of new equipment - from straight sales to financial
ABOUT THE EUROPEAN RENTAL ASSOCIATION (ERA)
The key mission of ERA is to promote the rental concept in order to facilitate a continued growth of the rental industry by creating an open European market, at a much larger scale than any national market.
ERA represents over 4,700 rental companies in Europe, either directly or through 14 national rental associations. Please visit www.erarental.org for more information.
To achieve this goal ERA acts as the representative association of the equipment rental sector at European level, complementing the activities undertaken by national rental associations locally.
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RENTAL: A SHORT INTRODUCTION
leases - long term and short term rentals and sales of used equipment. In contrast with the sales process which represents, for larger equipment especially, a single process between the vendor and the purchaser, rental activity represents a flow of repetitive transactions where the rental operator offers not only a large array of modern equipment and tools, but also service and training to the customer supported by new communication technologies. Actually, rental is all about service through convenient locations, operating hours, equipment inventories and processes. The European equipment rental industry has different origins depending on which geographical market is being discussed. These origins range from the branching out of equipment departments of some large contractors, mostly in the UK and Northern Europe, the development of pure rental players, mostly in France and Spain (also the dominant model in North America) up to the development of rental through large networks of equipment distributors as in Germany and Italy. It is therefore easy to understand why the European equipment rental industry is so diverse
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INTRODUCTION
•
RENTAL: A SHORT INTRODUCTION
in its structure as well as in its strategies and operating models. In developing markets, the customer’s needs are primarily related to the lack of capital expenditure, peak demand and emergencies In mature markets, the customer’s needs are more sophisticated, including productivity improvement, transfer of financial risk and better cost management. Since the middle of the last decade, the equipment rental industry has been experiencing a consolidation with the emergence of a number of large rental companies. Overall, however, the equipment rental industry still remains very fragmented with a vast majority of rental companies operating a single depot of around 5 people. This consolidation, coupled with strong development in information systems, has brought considerable progress in operating procedures and marketing techniques. One could wonder today if rental operators are renting equipment or becoming service providers.
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CHAPTER
01
COST BENEFITS OF RENTAL Rental helps companies reduce their fixed costs and staff costs and minimise the financial risks associated with owning large equipment fleets. 12
CHAPTER
01
COST BENEFITS OF RENTAL
T
he purchase of machinery increases the financial risk for a company and represents a significant fixed cost. By renting the same machinery, these fixed costs of ownership are transformed into a variable cost that is dependent on how much (or how little) the asset is used. This has a direct impact on a company’s bottom line and its financial strength.
TOTAL OWNERSHIP COSTS In addition to the cost of the initial purchase, there are a number of other ongoing costs of ownership, such as insurance, maintenance, in-service inspection, repair, transportation and storage. These costs tend to increase over the life of the machine, and are only marginally related to its actual use. It can be very risky - if not financially impossible - for a company to own all of the equipment it needs to fulfil its workload, in particular when a company is just starting to establish itself. Obtaining credit can be difficult, and this means that it can also be difficult to set up a fleet using
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COST BENEFITS OF RENTAL
finance leasing alone. Operating equipment through rental dramatically reduces the amount of capital required. Although collateral security is still required, this is tied to the rental cost rather than the cost of the machine itself which are only incurred when there is a reliable, predictable source of income.
OPPORTUNITIES DERIVED FROM RENTING As well as considering the difference between purchase costs and
Rental allows companies to take advantage of opportunities by reducing the available working capital
rental charges, and the reduced financial risk associated with rental, there is a bigger picture to consider: the opportunity cost in terms of the use of capital. Well managed, capital that is channelled into the core business – rather than tied up in machinery sitting in their yard – will help companies to develop and improve their profitability. Equally, rental is an excellent tool for supporting business growth and expansion, even if markets are uncertain. When companies have a portfolio of projects but not enough bank credit or capital available, rental allows them to take advantage of opportunities without undermining the strength of the company by reducing the available working capital.
EASIER AND SAFER BUDGETING Rental makes it much easier for companies to budget. While it is relatively simple to calculate purchase costs and estimate maintenance costs for the first years of service, it is neither easy to predict how much these costs will increase over time nor determine the residual value of the equipment when the time comes to dispose of it. Many of the larger rental companies today offer their customers easy access to operating data on the equipment that they are renting, which makes it easy for equipment users to track their costs. These financial considerations are the reasons why more and more companies are favouring rental as a means of managing their equipment needs. 14
CHAPTER
01
COST BENEFITS OF RENTAL
TESTIMONIAL
WHY ARE YOU USING RENTAL? “We find that there are a multitude of benefits associated with renting equipment as opposed to buying equipment. One of the key factors is that all equipment we rent is regularly checked by our rental company to ensure it is of optimum safety. Rigorous health and safety checks are carried out on all machines when rented and returned, and safety advice is given at the point of delivery or collection. There is also huge flexibility associated with renting equipment. As we can be working on multiple sites across the country, the equipment we need differs at any point in time so we can simply rent the equipment we need or return it as required. With
heavy plant costing anything up to and above £100,000 for each piece of equipment, significant capital outlay is required to purchase equipment. As we rent equipment, we need not make this substantial initial investment. We find that projects can change unexpectedly so we may need different equipment than we originally planned. With renting equipment, this allows us the flexibility we need. We also don’t need to worry about transporting equipment up and down the country as we can simply rent from a local depot.” James Mulchinock, General Manager, BCS Group 15
CHAPTER
02
OPERATIONAL BENEFITS OF RENTAL Owning and managing a fleet takes time and resources: companies need to maintain and replace equipment, deal with suppliers and ensure thatcertifications are up to date.
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CHAPTER
O
02
OPERATIONAL BENEFITS OF RENTAL
ther than the financial benefits for companies of outsourcing
their
equipment
needs to rental companies, there are tremendous operational benefits as well. Numerous activities are required in running an equipment fleet – maintenance, repair, trans-
portation, procurement, certifications, employing operators and more. Many companies are now turning to equipment rental companies to take over many of these day-to-day functions by outsourcing their entire equipment fleet. Others are using rental suppliers to provide these services for specific equipment types, such as power, aerial platforms or site accommodation.
A rental company leaves its customers free to focus on their core business
For example in the case of equipment maintenance a company needs to run professional workshops with parts inventories and consumables. It needs to allocate professional and financial resources for these activities – resources that could be employed more profitably elsewhere in the business. Rental companies carry out preventive maintenance of equipment and ensure their customers have only to worry about focusing on their work. In the case of equipment failure in the field, the equipment is either repaired on-site by the rental company or replaced by another piece of equipment to minimize downtime.
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OPERATIONAL BENEFITS OF RENTAL
PEACE OF MIND PEACE OF MIND
PROCUREMENT Procurement is also a time-consuming task – sourcing the right equipment, negotiating with suppliers, and ensuring that the most modern and productive equipment is operated. Rental companies invest millions of Euros each year in maintaining modern fleets, giving access to the latest, most productive and safest equipment on the market.
Similarly, there are legal and ethical responsibilities in owning equipment. These range from ensuring that machines are properly insured to making sure that periodic tests and certifications are carried out and are up to date. These fleet management tasks require experienced, well-trained staff, as well as management time. Delegating these functions to a rental company ensures that companies meet their regulatory obligations and have peace of mind. The end result, again, is more time to focus on their core business. Rental companies give operational flexibility as well, with the option to rent equipment over the short, medium or long-term.
A WIDE PRODUCT RANGE PEACE OF MIND
OUTSOURCING RISKS Rental also means outsourcing risk, as the rental company is responsible for providing safe equipment on-site (thus also shouldering any risk linked to their transportation when this is carried out by the rental company).
There are further operational benefits. Many companies are diversifying their activities, finding themselves working in new industries or locations that may require different types and sizes of machines. Using the resources of rental companies allows contractors to diversify without necessarily having to invest in new equipment. Rental companies are increasingly able to offer rental agreements that cover a wide geographical area, whether regionally, nationally, or even internationally. International agreements are now common in certain specialist rental sectors such as power or temporary accommodation. In addition to the cost benefits, these agreements offer enormous logistical benefits, with rental companies able to provide equipment fleets and repair back-up close to all work sites. The savings in transport of equipment alone can be significant. Many rental companies also offer services to track the location of the equipment that is being rented as well as providing operational and cost data. Put simply, renting allows a contractor to concentrate on its core business without the costly and time-consuming responsibility of managing an equipment fleet.
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CHAPTER
02
OPERATIONAL BENEFITS OF RENTAL
TESTIMONIAL
WHY ARE YOU USING RENTAL? “To us, rental offers a lot of
The result is a very high
advantages and is a useful
degree of flexibility, which
and cost-effective alterna-
nowadays is of greatest im-
tive to investing in new ma-
portance for running a truly
chines” says Stefan Wagner,
efficient business.
managing director of Wag-
Our company mostly rents
ner Gartenpflege & Gestal-
small construction ma-
tung, a family-run gardening
chines like mini-excavators
and landscaping establish-
including matching work-
ment, which is located in
ing tools for earth works or
Munich, Germany.
small demolition works. As a
“By renting specific equip-
contractor, you really ben-
ment, we are not obliged
efit from the extensive and
to hold out three or four
diverse choice of equipment,
machines of the same type in
that modern rental compa-
our own fleet. We receive the
nies offer.”
required equipment selectively and as needed for the respective task or project. This means that we get what we need, at the very moment when we need it.
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CHAPTER
03
WHAT CAN BE RENTED The rental market goes well beyond construction machinery and equipment.
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CHAPTER
03
WHAT CAN BE RENTED
T
oday, the rental market supplies customers from the construction sector as well as from a wide range of industries, gardening and landscaping, municipal and forestry services, the event industry and private clients. Depending on the customer segment, specialized machinery and equipment are available. Furthermore, the equipment on offer for rental is complemented by comprehensive rental services. Detailed below is a brief overview of the different categories of equipment that can be rented.
WHAT CAN BE RENTED
CONSTRUCTION MACHINES & EQUIPMENT
POWER & TEMPERATURE CONTROL
POWERED ACCESS, FORKLIFTS & TELEHANDLERS
MODULAR & SANITARY SPACE
TRAFFIC SAFETY
FALSEWORK, FORMWORK AND GROUNDWORKS
01 04
02 05
03 06
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WHAT CAN BE RENTED
CONSTRUCTION MACHINES & EQUIPMENT
01
Construction machines on offer for rental range from small machines such as mini-excavators and skid steer loaders to heavy equipment including hydraulic excavators and dumpers, which some rental companies offer with trained operators. When contractors need specialised equipment that they don’t hold in their own fleet, renting is often preferred. This can include equipment such as machines for road or railway construction. Customers can also rent a wide range of commonly used construction equipment such as compressors, pumps and compaction machines or even small machines and hand tools.
POWER & TEMPERATURE CONTROL
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Rental companies offer a vast range of temporary power solutions, whether it be for site use, events, petrochemical applications, manufacturing needs, shutdowns or power failures. The product range available includes generators, loadbanks, transformers and mobile fuel tanks. Also available are various climate control solutions such as heating and cooling systems, heat exchangers, as well as various lighting systems.
02
CHAPTER
03
WHAT CAN BE RENTED
POWERED ACCESS, FORKLIFTS & TELEHANDLERS
03
Powered Access is an important sector in the rental market. For different works at great height, for example for roof or hall construction, industrial cleaning or installation works, customers can choose from a wide range of working platforms or building construction lifts. Furthermore, telehandlers can be rented for diverse transportation tasks on construction sites. The industrial and event sectors often demand efficient logistics and a range of forklifts are available.
MODULAR & SANITARY SPACE Modular space is an effective means of providing additional space on customer’s sites, for short-term as well as long-term projects. The containers can be combined to build site offices and accommodation, sanitary facilities or storage space. In addition, a wide range of interior equipment or furnishings are available. Some rental companies offer special rental services for modular space, including preparing outlines and foundation plans, transport and installation services.
04
23
WHAT CAN BE RENTED
TRAFFIC SAFETY
05
Safety is a critical issue on every construction site, especially when construction works are carried out along busy roads or on highways. Therefore, rental companies offer various professional solutions for traffic safety. This does not only mean the provision and installation of beacons or traffic signs. As specific traffic safety regulations may apply depending on the country or region the construction site is located in, traffic safety requires an enormous planning effort and the know-how of well-trained professionals. Thus some rental companies have extended their rental services in this area and take care of the whole planning process including obtaining official approvals or preparing traffic regulation plans.
FALSEWORK, FORMWORK AND GROUNDWORKS Some rental companies offer a range of temporary construction solutions such as formwork – panels used to hold concrete in place until it sets – and falsework – propping to hold a concrete structure until it sets. Also included in the product range may be groundworks -equipment designed to hold open holes in the ground and allow operatives to work safely.
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06
CHAPTER
04
HOW TO CHOOSE A RENTAL COMPANY Some fundamentals objective and subjective criteria to help you choosing the rental company that fits your needs 25
HOW TO CHOOSE A RENTAL COMPANY
T
he choice of a rental company depends on objective criteria independent of the nature of the products to be rented or the company profile, and subjective criteria, which in contrast depends both on the profile of the customer and on the type of equipment needed. Here you can find some some criteria.
OBJECTIVE CRITERIA
LOCATION OF THE DEPOT(S) The proximity of the depot provides economic benefits because it reduces transport costs. When renting small equipment, this economic aspect determines the choice of the rental company. Especially in the initial phase of the relationship as it is important to talk personally with the depot manager and check the fleet.
THE FLEET INVENTORY The fleet inventory must guarantee the immediate availability of the equipment required especially when the equipment is booked in advance. Dealing with a large depot allows renters to find from a single source a whole range of services necessary during the whole rental relationship. Rental depots shall provide equipment which must be fully compliant with legislative regulations and in good operating condition. Rental depots shall also guarantee continuity of service through the replacement of the equipment or through the assistance service.
CONTENT OF THE PROPOSAL Rental rates are the easiest to compare parameters and show the policies applied by the rental depot. Special offers for weekend or 26
CHAPTER
04
HOW TO CHOOSE A RENTAL COMPANY
long-term rentals can make a rental depot more attractive. Together with rental rates, it is important to assess the full range of services included in the offer as well as the specifications of the equipment provided, which may be more or less expensive to run. Some rental companies may be competitive in short term rentals, others in long term rentals. It is therefore necessary to compare precisely and thoroughly the individual fees. Rental conditions provide all the information regarding the services ancillary to rental which are included in the rental fees and those which are excluded. Some of the services / issues such rental conditions should address include: •
Transportation of the equipment (generally excluded from the rental fee)
•
Damage waiver coverage (ranging from no coverage to full coverage)
•
Responsibility for maintenance (which tasks are performed by the rental company and which tasks are the responsibility of the customer)
•
Rules applying to downtime
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HOW TO CHOOSE A RENTAL COMPANY
The choice of a rental company depends on objective criteria independent of the nature of the products to be rented or the company profile, and subjective criteria
SUBJECTIVE CRITERIA
WHAT EQUIPMENT TO LOOK FOR Each rental company has its own area of excellence. For specific equipment, it is useful to establish relationships with rental depots that have specific experience with the products required. If the customer knows what task he needs the equipment for the rental company’s know-how will also guide him through the identification of the best equipment. Besides the equipment, it is important to define which accessories are required. Usually rental depots have a full range of accessories. If the only item required is an accessory, the widest range will be found with the specialists in the sector.
LENGTH OF RENTAL PERIOD The focus should be on rental depots offering attractive conditions for long term rentals. In the case of a short term rental, the best rental fees should be searched for from depots offering flexible contractual conditions.
WHO WILL USE THE EQUIPMENT Rental depots offering equipment with standard instructions for use should be the preferred choice. Rental depots should have well-trained staff, able to explain the practical and safe use of the equipment and provide answers to technical questions. All rented equipment must be compliant with existing legislation on safety.
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CHAPTER
05
RENTAL A SUSTAINABLE OPTION Rental may be considered a fundamentally sustainable activity. Indeed, renting equipment is an environmentally sound option compared to everyone buying and owning their own. 29
RENTAL A SUSTAINABLE OPTION
R
ental companies however often go beyond what the law or public procurement regulations require by subscribing to international standards on environment management systems (e.g iso 14001) or on occupational health and safety (e.g. ohsas 18001) Rental companies also increasingly implement their own Corporate Social Responsibility (csr) policies relating to all aspects of sustainability (economic,
social and environmental). As for the impact on the environment, this means an increasing number of rental companies have stringent procedures in place for example with regards to: 1. waste management 2. saving energy and other resources 3. use of environmentally adapted fuels and oils 4. reduction of the amounts of chemicals used in their processes
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CHAPTER
05
RENTAL A SUSTAINABLE OPTION
Also, the equipment provided by rental companies is usually relatively new. This combined with high maintenance standards, means that engines of powered equipment provided by rental companies operate with a lower impact on the environment than fleets composed of older equipment. The ERA believes that sustainability is part of today’s challenges
SUSTAINABILITY
SUSTAINABILITY IN THE RENTAL INDUSTRY Download this brochure for free at www.erarental.org
and that rental companies in all European countries should put it on their agenda, as it can have an impact on their business in both short and long term, either in their relations with investors or clients, or simply because the cost of inaction may increase over the years. The ERA supports the 10 principles of the UN Global
Sustainability in the Rental Industry
Compact and believes that following these principles will lead to a more sustainable rental industry. ERA published in early 2010 a brochure called Sustainability in the rental industry, which provides for concrete examples of actions undertaken by leading rental companies to limit their impact on the environment or make a positive contribution to the local communities they are a part of. This brochure is available for free down-
WWW.ERARENTAL.ORG
load on the association’s website: www.erarental.org
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CHAPTER
05
RENTAL A SUSTAINABLE OPTION
TESTIMONIAL
WHY ARE YOU USING RENTAL? There are numerous op-
We rent the relevant gen-
erational benefits in renting
erators from them and have
machines and equipment, es-
complete peace of mind
pecially for companies where
The machines arrive on
the need for e.g. Power or
site with all the connection
Temperature Control varies
equipment required and with
significantly from project to
professional engineers.
project. According to one of
They install everything and
Polands largest shipyards,
make sure it works. We han-
renting equipment makes a
dle the day to day running of
lot of sense. “We have ships
the machine. Should there
coming in frequently. The
be any problem, the engineer
power they require varies
is on site quickly, determines
from ship to ship and com-
what needs to be done and
pletely depends on the type
does it. Should a replacement
of work that is required.
be required they do it. As such
Usually we can handle the
we can be totally carefree
work with our own equip-
and be sure that we have the
ment. However, if the job is
required power for the time
particularly power intensive,
it is needed. When the job is
then we don’t want to have
over the machines leave our
to invest in new machines
premises and we can con-
just for this one job. That is
tinue with business as usual.
the occasion when we use
The ability to rent equipment
companies such as Aggreko
really benefits a company
to help us.
like ours.”
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CHAPTER
06
CONTRIBUTION OF RENTAL TO THE OVERALL ECONOMY The trend towards rental continues. For more and more customers, rental offers a useful and economic solution to flexibly cover their demand for construction machines and equipment.
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CHAPTER
06
CONTRIBUTION OF RENTAL TO THE OVERALL ECONOMY
T
his is not surprising, considering that rental allows flexibility, project-related budgeting and cost control and eradicates the need for expensive investment in new machines. At times of economic downturn, it has never been more important for contractors to reduce risk associated with their fleet. Many customers therefore not
only use rental to flexibly cover their demand for machines, but completely delay new investment in their fleet and choose to rent the equipment they need in order to carry out their business. Today, European rental companies can be divided into two groups: rental companies for whom rental is their primary business and other companies providing rental services. The first group can be further subdivided into rental companies that also offer equipment with operators and those who offer nonoperated equipment. A further distinction can be made between rental companies that offer a complete range of rental equipment, and rental companies that specialize in one particular product or product group, e.g. companies that only offer powered access equipment. Rental companies of course can also be differentiated according to their market size: next to the “big players� that operate internationally, there are national suppliers and of course many companies that cover a smaller regional or local market.
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CONTRIBUTION OF RENTAL TO THE OVERALL ECONOMY
GOOD REASONS TO RENT
FINANCE BECAUSE THE FLEET IS NOT USED ALL THE TIME Renting helps to avoid the burden of excessive investment, maintenance and other costs. Renting provides you with the equipment when you need it and so is more efficient than purchasing and watching your assets depreciate in value while they are not in use, thus improving your balance sheet. Furthermore there are fiscal incentives in some European countries to renting too!
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The European Rental Industry 2009 Report, a study of the rental market within 11 european countries that was conducted and published by ERA, puts the number of european rental companies (without operators) at around 14,900. These companies employ about 123,000 people at 21,500 depots. According to the Report, the total turnover of the european rental market (without operators) in 2009 amounted to 20.2 billion Euros. This means that the turnover decreased 17.2% from 2008 to 2009. In 2011, though, total turnover is expected to increase by between 0% and 10% depending on the country. The market penetration in the various European countries varies due to the different developments of rental in the respective country. But it can be expected that the penetration rates will continue to rise in the future as the benefits of renting become clearer to everyone.
The calculator has been created by the ERA to allow any stakeholder involved with construction equipment to check whether for his specific situation it would make more sense to rent or purchase a specific piece of construction equipment
GOOD REASONS TO RENT
IS RENTAL A SUITABLE OPTION FOR MY COMPANY?
whether for their own situato rent or buy equipment,
SERVICE
There are many different rea-
the European Rental
YOU USE IT WHEN YOU NEED IT
sons outlined in this guide
Association has developed
on why any company should
the Rent vs Buy Calculator,
call upon rental companies
which is available in several
to provide the equipment it
different languages at www.
needs. Our ‘good reasons to
erarental.org. There, any
rent’ provide a summary
(potential) customer, can
of the main benefits of rent-
complete the fields of the
al. However, in order to cal-
calculator with the informa-
culate the cost benefits of
tion relating to his use of a
rental, many parameters en-
certain type of equipment
ter into consideration. To al-
and see whether for his spe-
low (potential) customers
cific situation, rental would
of rental companies to see
be the suitable option.
tions it is more cost-efficient
Renting provides you and your business with flexibility allowing you to rent for the short, medium and long-term. Services include trained and experience professionals using the correct machines for your situation and tasks. They are also able to undertake on-site repairs further reducing your costs.
NORMS & REGULATION BE SAFE, JUST RENT IT, AVOID THE RISK The industry is well regulated and controlled providing you with peace of mind. Furthermore the outsourcing of product responsibility and legal compliance costs means that your risk is minimised.
PRODUCT THE RIGHT PRODUCT WHEN YOU NEED IT The equipment rental industry has the specific product for the specific job leading to efficiency gains. Equipment is regularly maintained and renting ensures a high quality and reliability of the product when on site.
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LEGEND National Rental Association + Individual companies
Individual companies Bregenz
znegerB
znegerB
ERA MEMBER COMPANIES OPERATE IN ALMOST ALL COUNTRIES IN EUROPE Find out which companies operate in your country at www.erarental.org 38
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