Is IoT the future of the equipment rental and hire industry?

Jan 20 2022 | Rental

Every industry worldwide has been impacted by the COVID-19 pandemic – for better or worse. 

For the equipment rental and hire industry though, the pandemic hasn’t been completely negative. Some operators have experienced increased demand as customers have begun to see equipment hire as less risky in the face of ongoing economic uncertainty. Some have experienced asset failures and been unable to source replacement parts due to global supply chain issues. 

While the pandemic has had both positive and negative impacts, the equipment rental and hire landscape has changed entirely. In this new environment, IoT (‘Internet of Things’) technology is likely to play a central role in its future trends. 

If you’re not sure where your business stands now, you’re not alone. That’s why we’ve prepared an industry report on future opportunities and how to overcome common challenges so that your company not only survives, but actively thrives. 

 

Equipment Rental and Hire Industry Report

How to overcome the industry challenges and thrive in the ‘next normal’

Download the Report

 

The latest equipment rental industry trends

While COVID has been less detrimental to the equipment rental industry than to others, things still haven’t been easy. Our report identifies some of the latest industry trends, including:

    • mining industry spending reductions in recent years that have negatively impacted many equipment rental operators
    • short-term reductions in construction activity in several key building markets, with flow-on effects in the equipment rental industry
    • disruptions in the supply of building materials, equipment and parts from overseas, due to shipping and manufacturing delays
    • new technology helping some industry operators to gain a competitive advantage by better managing equipment and customer relationships.

 

What are the common challenges?

We asked key experts in the equipment rental and hire business for their take on what’s happening and where they see future opportunities. For Allen Besseling, CEO of Hire Express, the biggest challenges in the industry are constantly changing.

“Earlier, it was COVID. Now, we have supply chain issues,” he says. “Keeping pace with technology is another challenge. We need to make sure we’re up-to-date. We’ve got to be there amongst it.”

Based on similar expert insights and our industry analysis, the report identifies five key challenges:

  1. Plugging revenue leaks: inefficient minor cost recovery processes waste precious time and resources. 
  2. Lacking in-depth visibility of assets: industry operators struggle to access the full potential of their IoT tracking devices to understand their machine utilisation better. 
  3. Dealing with supply chain issues: equipment prices and inventory costs have increased due to pandemic-related supply chain disruptions, while availability and access have gone down. 
  4. Maintaining and servicing of assets: preventative maintenance is more familiar, but can cost far more time and money when compared to a predictive maintenance approach. 
  5. Adopting technology: operators need to connect the dots on data collected from IoT trackers to maximise return on investment and access genuine, meaningful insights.

 

Want to know the solutions?

The good news is that your business can overcome all of these industry challenges using the right strategies and approach, and the industry report details how. In particular, it reveals how tech-based solutions are a critical aspect of post-pandemic industry recovery and growth.

We know that in the past, some industry operators have resisted embracing technology. Meanwhile, others have embraced it, but aren’t sure how to get the most out of their tech solutions. Either way, right now, a new way of thinking is required. 

To help your business thrive in the ‘next normal’, the report includes actionable, achievable recommendations that we’ve based on successful in-market solutions. 

 

It’s time to take action

Get ahead of the pack today. Download our report to find out what the future holds for the equipment rental industry. 

 

Equipment Rental and Hire Industry Report

How to overcome the industry challenges and thrive in the ‘next normal’

Download the Report