APE May 2020 | Page 24

EXPERT ADVICE THE RENTAL OPTION Sometimes renting a paver makes more sense By Jeff Winke T he construction equipment rent- al market has exhibited steady growth in recent years. It has reached record revenues of $93 billion in 2018 and is expected to reach $122 billion in 2024, according to MarketsandMarkets, Northbrook, Ill., a B2B market research company. Clear- ly, the construction equipment rental market, of which paving equipment rentals are included, are no small pota- toes. Add to that, a 2019 study by the American Rental Association (ARA) revealed renting equipment in the con- struction industry is at an all-time high. In fact, 93% of respondents reported having rented equipment in 2019. Of those who rented, 92% said they expect to rent at least as much in 2020, while 52% plan to rent even more. To provide perspective, consider that pavers perform the essential function of laying asphalt on roadways, bridg- es, parking lots, driveways, pathways, and other surfaces. When there is the need to expand the fleet on a tempo- rary basis or the need for an emergency replacement, renting equipment often provides the best value. “Usually renting makes more sense if you are using the paver for a specif- ic project over a short period of time,” stated Shane A. Sommers, sales con- www.callape.com sultant, with Hitek Equipment, Inc., Kenosha, Wis. “How long will the proj- ect last or, frequency of jobs would be a key factor. If the paver will be used over an extended period or, if it will be frequently used on different jobs, then purchasing would usually make more sense than renting.” 93% respondents reported having rented equipment in 2019 Equipment rental plays a role. “We see contractors renting asphalt paving machines for a number of rea- sons,” reported Bryce L. Davis, general sales manager, North America, LeeBoy, Lincolnton, N.C. “Contractors will rent equipment if they picked up extra work for the short term, or have an odd type of paving opportunity, like utility [24] cuts. Some jobs call for a backup pav- er to be on site or your machine is un- dergoing normal maintenance and or repairs. Sometimes a contractor picks up a job that’s way outside their normal travel zone, which can make it cheap- er to rent a machine then deal with the long haul both ways. Or maybe a con- tractor just wants to try a different sized machine or model before buying it.” Davis continued: “With any short term needs for an asphalt paver, renting is the way to go. Renting is also a good source for any asphalt firm to always have that second machine available, if or when needed, without owning it. Some contractors have found many benefits in renting an asphalt paver for a season, then purchasing it. This try-it- out approach helps to make sure your crew is productive with this paver. You get to test the machine for a season un- der your production requirements and market. You also get to test the ser- vice and parts at the dealership before buying. There’s also those who always want a new machine each paving sea- son without the obligation and costs of ownership.” Clearly, renting paving equipment helps meet contractor needs and pro- vides business benefits. “We typically see renting occur under three scenarios,” said Travis Colwell, 1.800.210.5923