Growth opportunities in the Rental Market

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Targeting the growing Rental Market with VMAC’s G30 Gas Driven Air Compressor

The global construction equipment rental market was valued at over $34 billion in 2014 and is anticipated to reach almost $85 billion by 2022.  In a survey of over 70,000 business owners, CEOs, managers, and procurement professionals between 2011 and 2014, heavy equipment rentals increases across the USA, with some equipment categories growing by as much as 1,000%.  According to construction.com, USA new construction starts are expected to increase 5% to $713 billion.

With such a large market size and high growth rate, the opportunity is massive for manufactures and distributors to supply rental companies with the latest advanced technology.  With spending on infrastructure expected to increase, now is the time for rental companies to add to their fleet, to keep up with demand and maximize their revenue.

The types of rental equipment requested has changed over time largely due to Tier IV engine regulations, new technologies, and more flexible options for financing.  Construction companies have differing reasons why they choose to rent vs buy their equipment.  According to United Rentals, lowing expenses, less maintenance and less paperwork make construction rental equipment an increasingly popular choice.  According to Ritchie Bros, there are five factors to consider when making the decision to buy or rent:

  1. Current financial situation.
  2. Cost of ownership vs cost of renting.
  3. Length of project or job frequency.
  4. Equipment availability & usage.
  5. Fleet management and inventory control.

According to the European Rental Association’s (ERA) Committee on Equipment Technology, business challenges facing the rental market include:

  • Wasted job opportunities – no shows, wrong person, wrong equipment.
  • Revenue not captured.
  • Equipment under-utilized.
  • Equipment breakdown – lack of maintenance.
  • Financial risk of unqualified operators.
  • Total cost of ownership (damages, accidents, maintenance, etc.).
  • Standardization where possible (decals, marking and indicators, safety signals).
  • Simplified instruction manuals and training (operation, maintenance, safety, e-learning).
  • Parts management.

The ERA also states that 70-80% of repair costs come from equipment damages.  These uncontrolled expenses have resulted in rental companies specifying equipment based on the following important factors:

  • Reduced delivery time of parts.
  • Reduced logistic costs.
  • Cheaper parts.
  • Simplified replacement process.
  • Standardized equipment and parts, where possible.

Other considerations of rental companies when specifying rental equipment:

  • Pictograms for important/essential information on equipment.
  • Simple and robust equipment.
  • Aesthetics is not a criterion when purchasing.

The VMAC G30 gas engine driven rotary screw air compressor is designed for the Rental Market, where size, weight, reliability and durability matters. For the buyer who needs a low total cost of ownership, this air compressor is the most affordable gas drive rotary screw air compressor available.  For the equipment renter who needs to maximize productivity, this air compressor produces up to 30 CFM, 100% of the time. That means the operator doesn’t have to wait for air pressure to build.

Common jobs that use the VMAC G30 air compressor:

  • Light/medium duty mobile mechanics
  • Mobile tire service technicians
  • Light duty contractors

Common tools that are powered by the G30 air compressor:

  • 3/4” impact wrenches
  • Backfill tampers
  • 2” Horizontal grinders
  • Chipping hammers
  • Die grinders
  • Tire inflation

Highlighted benefits of the G30 for the Rental Market:

  • 50% lighter, smaller, and more powerful than reciprocating gas drive air compressors.
  • Backed by the best warranty in the industry, with a VMAC Lifetime Warranty on the compressor, and a Subaru 5-Year Warranty on the engine.
  • Only 205 lbs, and measuring 5” (l) x 20.3” (w) x 20.7” (h)
  • Powered by a Subaru EX40 engine featuring electric start with manual recoil backup.
  • Includes an integrated ACDelco 12 V, 250 CCA, 310 CA battery.
  • Optional Cold Climate Kit, proven at temperatures of -25o
  • Optional Protective Cage, adds 110 lbs to weight and measures 35” (l) x 23” (w) x 25.75” (h).

To learn more about the most affordable gas driven rotary screw air compressor available, visit the VMAC G30 webpage.

VMAC designs and manufactures the most compact and powerful mobile air compressors and multi-power systems available.  For a complete list of products manufactured by VMAC, visit VMAC’s website.  To learn more about how “VMAC’s rotary screw gas drive air compressor outperforms and outlasts all others”, check out our recent educational article.

For more information, contact sales@vmacair.com.

To view all articles posted please visit the Gas Drive Education Series main page.