The Rental Revolution
How Equipment Rentals Keep Construction Firms Competitive
By Mara Watts
As economic pressures rise, construction firms are turning to more accessible methods for obtaining heavy equipment. Inflation and high interest rates make it difficult to purchase equipment outright, driving the demand for rentals.
Ivan Franklin, vice president of construction lending for Mitsubishi HC Capital America, says the demand for construction rental equipment has grown due to the increase in purchasing cost for construction machinery, rising interest rates and economic uncertainty.
“ More and more contractors are shifting towards renting equipment due to the flexibility it provides,” he said.“ We see the biggest surge in demand for earthmoving equipment, material handling equipment and concrete and road construction equipment.”
Financial and Business Benefits
For construction firms, renting offers several financial advantages over purchasing, including:
Financial Flexibility:
Renting equipment helps companies avoid significant upfront capital needed to purchase machinery, which frees up cash for other business needs.
“ Rental payments will often be lower than payments on
20 April 25, 2025 www. contractorshotline. com