Riding the Rental Rate Rollercoaster: Q3 Insights & Q4 Forecast
Ever had a moment when the world seems to be moving in fast-forward? That’s Q3 for the equipment rental world according to EquipmentWatch’s latest Quarterly Retail Rental Report. Our analysts report that 70% of the most popular machines are getting more daily attention (read: increasing rates). The spotlight? Compact Track Loaders with a 6.87% rental rate increase! Crawler Mounted Compact Excavators weren’t far behind, moving from $404 to $429, daily. And yes, amidst these high-flyers, there were a few who didn’t enjoy the limelight, but who’s counting?
Zooming In: Small & Medium vs. The Biggies:
Small and medium-sized equipment rolled out the red carpet this quarter. After playing it cool and steady, they’re enjoying a subtle rise. The Crawler Mounted Compact Excavator topped the charts, registering a 7.12% weekly rental rate jump. Not to be outdone, our Compact Track Loaders added a cool $80 to their weekly tab. But life isn’t all sun and roses. The Standard Crawler Dozer, for instance, felt a pinch. As for the medium-to-large equipment, their rental rate dance was a bit of a tango – some stepped forward, some back.
Mapping the Rental Landscape:
Regional nuances? Oh, they’re real. In the universe of top equipment types, regions throughout Canada as well as Hawaii played a deja-vu card, echoing their Q1 & Q2 decreases. But the Central and Western U.S. including Wyoming and Montana? They’re dancing to the same triumphant tune as last quarter. Regionally, the central states from Delaware to Michigan are catching their breath after a Q2 dip, the coasts on both sides are holding the fort. Delving deeper, Q2 to Q3 threw some curveballs. Northeast, Hawaii, and Texas rode the high wave, while our Canadian friends, from Prince Edward Island to the Yukon, took a step back.
Q4 Crystal Ball:
Here’s where we put on our clairvoyant hats. With the construction sector showing promise, the ripples are felt in our domain too. Remember when we were gearing up for a humble 4.7% growth in rental revenue? Well, the universe surprised us! A whopping 7.6% increase is on the horizon, aiming for a $60.4 billion golden pot by year-end. And guess what? Sunbelt Rentals caught the vibe and amped their year-end projections by 16%.
So, what’s the takeaway from this rollercoaster of a Q3? As we usher in Q4, the winds of change are strong. Rising construction spends, bustling OEM activities, and active infrastructure projects all point to a stable yet high-demand rental landscape. But here’s the kicker: It’s not just about the momentum; it’s about the direction. The terrain might be changing, but are you geared up for the journey? Stay tuned with your EquipmentWatch partners as we help guide you.
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.