Following a record valuation of 208.3 billion in 2021, the worldwide heavy machinery equipment rental market is expected to reach 250.4 billion by 2026, at a CAGR of 3.8 per cent. The rising need for cranes, backhoes, and excavators, as well as a progressive trend toward automation and telematics, are driving market expansion. Modern technologies such as digital services for automated service upgrades, mapping features, and equipment service tracking have also emerged in the sector.
Renting construction equipment rental also makes financial sense since it reduces not just the cost of purchasing new equipment but also ongoing expenses such as labour, maintenance, and operating costs. All of these procedures are performed on a regular basis by construction equipment rental businesses in order to reap long-term profits from machines.
Heavy Construction Equipment Rental Business Machinery Types
Heavy equipment rental business, often known as heavy machinery business, is a wide phrase that refers to heavy-duty devices used in the construction, forestry, mining, and agriculture industries. Their primary use is to move earth and other heavy materials, although they are also used for drilling, lifting, grading, paving, suction, and compaction. The following are ten of the most often utilized heavy construction and earth moving equipment:
- Backhoe \sBulldozers
- Graders (Motor Graders)
- Handling of Materials
- Trucks Used for Dumping
- Tower Cranes Loaders
- Concrete Machines
Here are a few factors that must have to be included in your equipment rental business plan if you want to be successful :
1. Sources of revenue
Identifying income sources is one of the most critical aspects of developing a company plan–it will make or break it. How are you going to make money with your heavy equipment rental company? Here are only two possibilities.
Brick and mortar store
Obviously, you’ll need a location to store the equipment you want to rent to contractors. If you’re not sure where to start, look into the client base in a certain location. Examine your competitors as well. Will you have enough business to expand there?
Because technology is always evolving, you’ll want to incorporate an online platform in your equipment rental company strategy, or you’ll be left in the dust. Create a strategy for digital success.
One option is to create a website. Whether you want to conduct online transactions or simply show off your extensive inventory, going on the Internet is certain to boost your bottom line. Include the following important things on your website:
- Equipment that is available
- Contact information
- Hours of operation
Don’t forget to improve your site for local SEO. Given that your consumers will almost certainly be local, this is an essential component of your internet presence.
2. Legal aspects of equipment rental business
You can’t write an equipment rental business plan without thinking about legality, taxes, and insurance.
You might look at a variety of company kinds. When beginning a small rental firm, limited liability might be a suitable match. However, before making a choice, consult with a business mentor or an accountant.
Insurance is required to avoid having your business shut down by a customer who is suing you for bodily harm or property damage. Here are a few forms of insurance to think about including in your plan:
- Liability in general
- Property protection insurance
- Insurance for commercial vehicles
- Compensation for workers
3. Upkeep of Equipment
Your equipment rental business strategy should contain a maintenance and repair method that you may put in place whenever you receive the equipment back from your clients.
In rare situations, contractors may return your equipment with damaged or missing parts. Don’t forget to set a preventative maintenance routine to ensure that your equipment continues to perform properly.
If you’re just starting out and are comfortable with the equipment, doing your own maintenance can help you cut corners and save money. You may alternatively support a local shop that specializes in equipment maintenance or hire an in-house technician. Keep in mind that in-house mechanics may be more cost-effective for your company in the long term.
Maintain current photographs in your equipment maintenance records. Take photographs before and after a piece of equipment is checked and (if required) mended upon its return. This can assist you in determining how the equipment was treated while in the care of a certain consumer.
4. Marketing plan
A marketing strategy is essential for a company’s success, and your rental equipment business plan should include a brief explanation of your approach. Here are two things to think about:
Social media sites such as Facebook and Instagram may assist in raising business recognition. You may then upload and share photographs, customer tales, and blog pieces you’ve written. This fosters ties and confidence among existing and prospective clients.
Consider digital advertisements on Facebook and Google, as well as print ads in trade magazines, if you want to publicize your company. If you’re not sure where, to begin with, Facebook advertising, Boostpoint, an Equipter-affiliated SaaS business, can assist!
5. Multipurpose equipment that is innovative
When it comes to purchasing company equipment, don’t make educated guesses. Potential investors in your company want to know that you’ve done your homework and want to serve your community to the best of your abilities. Examine your competitors and understand what your potential clients require to determine what equipment you should get.
After you’ve determined what’s essential to them, make it a point to emphasize that you’ll prioritize quality above quantity. It is preferable to have a few high-quality pieces of equipment rather than a vast fleet of unreliable and easily broken machines.
The Equipter RB4000 is a low-maintenance, innovative piece of equipment that serves roofing, general construction, and restoration companies across the United States and parts of Canada
Equipment rental, also known as plant hire in some countries (including the United Kingdom), is a service industry that rents out machinery, equipment, and tools of various types and sizes (from earthmoving to powered access, power generation to hand-held tools, and so on) for a limited time to final users, primarily construction contractors but also industry and individual consumers. Renting may be characterized as obtaining equipment for a temporary purpose in order to assist those who are unable to purchase the equipment. If you are really interested and have a passion, the equipment rental business is a kind business you can start with.