"Rent or buy? In today's industry, it's not just a decision for a house or car anymore. The same question is increasingly asked in the heavy equipment sector as construction, agricultural and mining companies seek to cut costs and make the best use of their working capital," writes Mikael Forsman, director of Infor Equipment, in a June 23 guest column in Industrial Equipment News headlined "7 Biggest Rental Challenges of Equipment Dealers."
"Equipment rental is trending upwards in all regions of the world-and it is set for further growth. Rental saves capital, provides flexibility and frees companies from the cost and complexity of maintaining owned equipment. … rental is a growth market that provides ample opportunities to expand the dealership and grow revenues. However, in order to succeed, one needs to be prepared for rental's particular challenges."
Forsman then lists "seven of the biggest challenges equipment dealers will need to overcome to be successful in the rental market, as well as some approaches to dealing with these challenges."
1. Taking control of a multifaceted business