The rise of industrial equipment rental

More and more companies in the industrial sector are moving away from the traditional model of buying and owning materials, to a more flexible model of renting and leasing. This shift to a rental economy offers many advantages for industrial companies.

In this article, we take a look at this trend, discuss the reasons behind the growth, list the most commonly rented equipment, and share some tips when renting out industrial equipment.

5 Reasons why industrial equipment rentals are growing

There are several factors contributing to the increasing popularity of industrial equipment rentals:

1. Cost savings: By renting equipment instead of buying it, companies reduce their capital expenditure and improve their cash flow. They do not need to make large upfront investments.
2. Flexibility: Renting gives companies the flexibility to respond quickly to changing needs. They can rent equipment when needed, for example when they face a peak period. And they return the equipment when the project is completed or the peak has leveled off again.
3. Access to advanced technology: Rental companies invest in the latest equipment, giving renters access to advanced technologies without the high purchase costs.
4. Reduced maintenance: When renting, the lessor is responsible for equipment maintenance and repairs, reducing maintenance costs and downtime for the lessee.
5. Sustainability: Renting promotes more efficient use of resources, as equipment is shared between multiple users instead of remaining unused by one owner.

What industrial equipment is suited as rentals?

Companies rent a wide range of industrial equipment depending on their specific needs. Some of the most commonly rented industrial equipment include:

• Forklifts and other internal transport equipment.
• Excavators, bulldozers, and other construction equipment.
• Generators and other power supplies.
• Compressors and pumps.
• Scaffolding and aerial platforms.
• Industrial cleaning equipment.
• Test equipment and measuring instruments such as detection equipment (gas detection).
• Welding equipment and machines.
• Ship salvage equipment (pumps, cranes, shears).
• Fiberglass equipment (measuring equipment and fusion welding equipment).

The rental market for these materials is growing steadily, driven by increasing demand from industrial companies that recognize the benefits of renting.

What should you look out for when renting out industrial equipment?

Pitfall 1: Unclear contract conditions

One of the biggest pitfalls when renting equipment is the lack of clear contract terms. It is essential to record all agreements in black and white to avoid misunderstandings. Think about things like:

• The exact rental period.
• The rental fee and payment terms.
• Maintenance and repair responsibilities of both parties.
• Insurance and liability in case of damage or theft.
• Agreements on transport and delivery.

Tip: Have the contract drawn up or checked by a lawyer experienced in rental agreements. This will ensure that you are legally well protected.

Also read: Renting out equipment? Use a rental agreement!

Pitfall 2: Poor maintenance and quality control

If you rent out equipment, it must be in good condition. Poor maintenance can lead to breakdowns, downtime, and dissatisfied customers. Therefore, ensure a tight maintenance schedule and carry out regular thorough inspections. Check the equipment both before and after the rental period and document any defects.

Tip: Invest in a solid asset management and maintenance system. This will allow you to easily keep track of when maintenance is needed and the condition of your rental fleet.

Pitfall 3: Underestimating wear and tear and depreciation

When determining the rental price, it is tempting to only look at the purchase value and direct costs. However, do not forget to take wear and tear and depreciation into account.

Industrial equipment that is rented out frequently simply does not last as long. By not taking this into account, you undermine your profitability in the long run.

Tip: Calculate the total cost of ownership (TCO) of your equipment, including maintenance, repairs, and depreciation. Base your rental fee on this to ensure a healthy return.

Pitfall 4: Inadequate tenant screening

Not every tenant is equally trustworthy or creditworthy. It is therefore vital to carefully screen potential tenants. Ask for company details, references, and proof of creditworthiness. Also, check whether the company has experience with the type of equipment you are renting out and whether they have the right insurance.

Tip: Use specialized credit checking services and don't be afraid to turn down a tenant if you have doubts. Better a missed rental income than a defaulter or unreliable party.

Pitfall 5: Lack of flexibility and service

The rental market for industrial equipment is on the rise. To stand out, offering excellent service and flexibility is a must. Be prepared to take specific wishes and needs of customers into account. Consider things like flexible rental periods, tailor-made solutions, and 24/7 breakdown support.

Tip: See equipment rental as an opportunity to build long-term relationships with customers. By proactively taking care of your customers, you create loyal customers who return to you again and again.

Conclusion

The rental economy is transforming the way companies use industrial materials and equipment. By choosing to rent rather than buy, companies can cut costs, increase flexibility, access advanced technologies, and improve their sustainability.

With a growing number of rental companies offering a wide range of industrial equipment, it has never been easier for companies to switch to a rental model. For rental companies in the industrial sector, this trend presents huge opportunities. 

By responding to customers' changing needs and offering high-quality equipment and service, you can increase your market share and build long-term relationships with customers.

The future of the industrial sector lies in the rental economy. Companies that embrace this shift and establish strategic partnerships with trusted suppliers are well-positioned to thrive in this new era of flexible equipment management.

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