By using this website without changing the cookie settings in your web browser you consent to all cookies in accordance with the Cookie Policy.

By Daniel Mega, Industrial Machinery Specialist, Emerson Automation Solutions

It’s a scenario no equipment-rental company can afford: A big construction project comes to a halt because a rented air compressor or power generator breaks down. And because of supply chain bottlenecks, replacement parts are a long time coming. Every sidelined piece of equipment is revenue and opportunity lost.

The construction market has recovered strongly from the COVID-driven slump of 2020, and forecasts for 2022 are bullish for all key sectors, including homebuilding and nonresidential. That doesn’t include the federal government’s $1 trillion infrastructure spend, signed into law in November, which should give an even bigger boost to 2023. Equipment rental companies will grow right along with construction to nearly $65 billion by 2025, according to the latest survey by Research and Markets.

With so much opportunity ahead, expect the rental industry to gear up accordingly, investing heavily in fleets of revenue-producing machines. The payoff for that investment depends on how well the equipment holds up in the field and how quickly maintenance issues can be resolved. Overall Equipment Efficiency (OEE) is the metric that will determine whether an investment is smart or regrettable.

Often that boils down to components, because when a compressor fails, it’s not the whole compressor that fails, but part of it. It benefits major rental companies to specify, as part of their initial orders, components that last longer and can be quickly replaced. The good news is, when manufacturers are competing for their business, buyers have more influence than they may think.

Before placing that big order, rental companies should review with the original equipment manufacturer not just the entire unit but what goes into it. Ask the following questions: Where are the components made? Is a distribution network in place to support repair and replacement? Are the components standardized or variable? (Standardized is better.) Is there data to prove the reliability of components? Is that data field-tested? Do the components manufacturers have a proven track record for initial quality and support capacity? 

For a successful build-to-order strategy, the key issues are:

For large rental companies, the stakes simply are too high to take whatever components the equipment manufacturer wishes (for its own reasons) to use. Time is money, and when a single, diesel-powered compressor can rent for more than $700 a day, downtime is the enemy.

By all indications, a healthy construction market will provide a robust period of opportunity for equipment-rental companies in the years ahead. Insisting on quality, standardized components with strong supply chains and support is the best way to make sure that no opportunities are missed.

Daniel Mega is an Industrial Machinery Specialist at Emerson Automation Solutions, working with customers on how best to achieve their automation and fluid control goals. He joined Emerson in 2017.

For more news and information regarding issues important to equipment manufacturers, subscribe to the AEM Industry Advisor. 

Join 13,000+ of your industry peers who subscribe to the AEM Industry Advisor to get insights and updates about equipment manufacturing.