Industry Experts Indicate Sunny Skies Ahead for Construction – What’s the real story behind the sunny forecast?
Industry experts are predicting good weather on the horizon. If we peek at national stats, sunny skies do indeed seem on the brink of shining through the clouds: national nonresidential construction spending rose by 0.4% in August alone, as noted by an Associated Builders and Contractors analysis. But let’s drill down a bit, shall we? Out of the 16 nonresidential subcategories, a whopping 12 reported a monthly uptick. Now, while privately financed sectors like commercial and education took a slight dip—partially due to those pesky elevated borrowing costs—public sectors are bustling, with a rise of 0.6% in August.
In EquipmentWatch’s upcoming Quarterly Rental Rate Report slated to come out in November, industry experts are also singing a telling story. SunBelt Rentals, for instance, saw their rental revenue leap by an impressive 16 percent year over year. Is the construction world tapping its feet to a brighter economic tune?
ABC’s Chief Economist Anirban Basu shares a glimpse : Even with challenges like high interest rates, material costs, and labor shortages, the construction realm remains hopeful. And guess what? Many contractors are still optimistic about their profit margins expanding in the coming months. So, where does this leave you, the diligent construction equipment manager, fleet manager, or project manager?
Whether you’re in the trenches every day or managing from the office, the dilemma is often the same: to rent or to own? And here’s where EquipmentWatch can be your guiding light.
With tools like our Retail Rental Rate paired with our Internal Charge Rate Calculator, you’re not just making decisions—you’re making informed decisions. As equipment rental gains traction—a trend both dealers and rental houses are capitalizing on—it’s more crucial than ever to stay updated. Are you adapting to the market’s pulse? Are your rates synced with the latest trends?
Remember, lagging rates are silent killers. Being even a step behind can erode profits faster than a downpour on a freshly laid concrete foundation.
Recent trends show contractors and project owners leaning towards precision. There’s a fervent quest to pin down rates with sharper accuracy. To anchor their calculations, many are now drawing insights from a blend of data sources, striving for a holistic view when deciding between renting and purchasing equipment.
Why this meticulous approach? Simple. Accurate data equals sound decisions. And sound decisions lead to booming business. So, as the construction world is set to bask in the sunny forecasts, are you poised to make the most of it? The weather might be predictable, but the market? That requires a little more than a weather vane. It demands tools and insights that are spot-on, like those offered by EquipmentWatch. In conclusion, while the sun shines bright and opportunities knock, ask yourself: Are you equipped to answer?
At EquipmentWatch, we analyze equipment values on a regular basis with our monthly Market Reports. More in-depth reports such as The State of the Construction Equipment Economy aim to arm you with the insights you need to make quality, informed decisions about how to manage your heavy equipment. EquipmentWatch can help you with the data you need now to set accurate rates, value your fleet, make disposition decisions, and understand when to rent equipment. We are also ready to be your principal data provider for any AI-focused projects you take on in the future. For more information on the data solutions offered by EquipmentWatch call us at (888) 307-1713.