COVER STORY //

5. Increased pricing

Costs have increased in various market sectors, including used equipment.

Groat says some rental companies are holding on to their aerial equipment longer than others, partly because of supply chain constraints.

5. Digitization

Technology acceleration, creation and utilization are at the forefront of the digital boom, according to Morris.

“Everything is connected to the internet, including equipment and other construction-related devices. All associated data is moving to the cloud, making real-time data and information accessible anytime and anywhere,” Morris says. “Many consider the jobsite of the future to be about two-way, interactive communication. Two-way communication links equipment to operators, remote third parties and other machines on the construction site to automate certain functionalities, speed up documentation, deliver information for crews to make faster, more accurate decisions and enable technicians to access information that increases machine uptime.”

One example of that two-way communication comes in the uptick of telematics, Yates says.

“It’s having more information not only for the user or operator but also for the owner or fleet manager,” Yates says. “They can diagnose the issue and provide the support. That’s allowing people to be more productive.”

Another digital trend coming to the scene is augmented reality (AR), a technology that superimposes a computer-generated image on a user’s view of the real world, thus providing a composite view, Morris says. While AR can be used with tablets, helmets or glasses, construction pros can use this technology right from their phones.

Autonomous and semiautonomous equipment round out the digital trends impacting the industry.

“Autonomy can aid in repetitive construction tasks that may result in an overuse injury,” Morris says. “Today, there is substantial observation happening at the jobsite level to identify the ‘jobs to be done’ that semiautonomous and eventually fully autonomous equipment will be the solution for. There’s still a lot of work to be done before we see the mainstream use of fully autonomous solutions.”

CHALLENGES 1. Serviceability

Because more uptime means rental companies’ profits trend upward, Yates says manufacturers look to build machines that are easy to service.

“If you have 100 machines, and 50 of them are down, that’s a challenge. We’re trying to reduce that and support them properly,” Yates says.

She adds that especially on equipment such as scissor lifts, some manufacturers are moving to AC drive to promote easy maintenance.

“At ARA, we showed a preview of our new AC drive scissor,” Yates says. “That’s part of the simplification of machines from a service standpoint. There are fewer hoses and hydraulics in the AC drive machines. We eliminate a number of parts and reduce the potential for leaks. We’re always thinking of how we can make it easier for the customer to use while still giving them the powerful drive motors to ramp up and get into their places.”

2. Infrastructure

While green initiatives have gained traction in the industry, building out the infrastructure to support those initiatives and charge that equipment remains a challenge, says Groat.

“Which comes first, the chicken or the egg? At this point in time, we know the pressure to go to electrification is coming first,” Groat says. “However, it’s frightening how disjointed our distribution network is within the states. We don’t have a national network—we have all these independent power companies that form the grid.”

To sustain the increase in electrification, Groat says he’s seen projections that the power grid will need to double in size.

“I don’t think we have a solution right now,” Groat says. “We’re running down a corridor (of electrification), but we don’t know what’s at the end of that corridor at this point.”

3. Supply chain issues

While pressure has eased on supply chain challenges, the issue remains at the back of everyone’s minds.

“Our customers are seeing strong demand and, as a result, need us to supply product. Being constrained isn’t unique to the aerial industry, but it’s a challenge we’re having to address,” Meester says. “Demand and supply will always swing and trade places in free markets, but in the meantime, demand has continued to outpace supply, which is something top of mind for almost everyone in the industry.”

Weisman notes that with some major manufacturers, the companies are unable to deliver machines.

“There’s an appetite for the machines, but not the ability to procure them as needed, which created an opportunity for us because we took an aggressive stance in the beginning of COVID to grow,” Weisman says. “All manufacturers suffered supply chain issues, but we took an aggressive approach, and we ordered a lot of stuff in advance, and it allowed us to continue to show significant growth because of it.”

Skyjack Vice President of Marketing Malcolm Early adds that manufacturers are keen to alleviate the aging fleet situation that has increased since COVID.

“Supply constraints faced by original equipment manufacturers held back that fleet age improvement objective as of late, and in the coming year, we expect those constraints to lessen,” Early says. “Supply chain challenges also highlighted the need to revisit supply chain and logistics structures with more localization.”

Morris agrees that the industry may trend more toward localization.

“Before the pandemic, the construction industry had become largely dependent on suppliers from a few key countries, which ultimately exposed several long-term risks,” Morris says. “Postpandemic, it has begun moving toward region-forregion supply chains to create a more diversified supply base, including suppliers from mature, developing and emerging countries, a step toward the industry’s long-term evolution.”

4. Manufacturer support

Because growth in the industry has opened the door to new manufacturers, Groat says he worries about them being able to provide adequate support to rental companies.

“The challenge with new manufacturers is whether there’s adequate support in (rental companies’) area after they buy the equipment,” Groat says. “It’s challenging to be dependent on equipment that has to be shipped from far away and on transportation systems that have either been doubling in price or not dependable.”

He adds that for some manufacturers, domestic and otherwise, lead times can soar to more than a year.

“This is an industry that has historically not been really great at planning and that is more reactive than anything else, where companies buy when they need equipment as opposed to getting it with the hope that they’ll need it (in the future),” Groat says.

Looking Ahead

All in all, tailwinds such as increased demand for construction, increased infrastructure and manufacturer investments in technology fuel growth for the aerial equipment industry.

“We expect the supply chain challenges to continue for a little longer, but I’m optimistic that at some point in the future, we won’t be talking about a constrained supply chain anymore,” Meester says.

Early agrees.

“In 2023 and 2024, we expect those constraints to lessen,” Early says. “Despite inflation, the rental industry forecasts are bullish and, in our opinion, will significantly mitigate issues such as inflation and recession.”