Rental March 2022

SNEAK PREVIEW CONSTRUCTION Find your skid steer comfort zone

March 2022

2022 OUTLOOK

THOUGHT LEADERS GIVE INSIGHT ON WHERE THE RENTAL, CONSTRUCTION AND GREEN INDUSTRIES ARE GOING

SPECIAL SECTION

EMPOWERING WOMEN IN RENTAL

Find the latest news at www.ForConstructionPros.com/RENTAL

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3/2/22 11:44 AM

American dreamers As co-owners of a successful construction equipment rental business, Ernestina Rincon and Lilia Jubrail of The Equipment Connection have attained the American dream. We salute difference-making women in rental this month.

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JohnDeere.com/rentalsales

3/1/22 10:42 AM

VOLUME 43 ISSUE 2

MARCH 2022

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Despite challenges like the labor shortage and supply chain strains, industry members expect the equipment rental industry to grow and beat expectations.

RENTAL: AN INDUSTRY OF HOPE

28

COVER STORY

A Look at Supply Chain Issues in Construction

IN EVERY ISSUE 04 Everybody’s Business 06 Online Exclusives 08 Market Watch 14 Industry Update 48 New Products 50 Eye on Rental As we enter 2022, here are some predictions for this year.

While the supply chain issues will be corrected over time, the labor shortages plaguing the construction industry are expected to intensify.

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COVER STORY

Outlook Positive for Green Industry Despite issues, the landscape industry is ‘open for business’ as many homeowners rethink and prioritize their outdoor space.

42

FEATURE

Women at the Summit ARA’s Women in Rental group aims to empower women and build their voices.

46

FEATURE

Finding Your Skid Steer, Compact Track Loader Comfort Zone For the construction business owner struggling with employee recruitment and retention, having equipment that is enjoyable to operate could make all the difference.

www.ForConstructionPros.com/RENTAL

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MARCH 2022

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3/1/22 10:43 AM

EVERYBODY’S BUSINESS // B y

Sarah Webb

swebb@ACBusinessMedia.com ™

READY TO LEARN

I

come from a background in B2B with those previous publications, I publishing, focusing on the green became more comfortable with the and golf course industries. I audiences and industries I was serving, previously worked as the managing accumulating thousands of minutes editor for the Landscape Management, worth of phone interviews, traveling Golfdom and Athletic Turf brands. Prior to Orlando, Boston, San Diego and to that, I graduated from Wittenberg many places in between and writing University, where I studied journalism hundreds of articles. All of that felt like and Spanish. Following graduation, I a far cry from the first time I’d visited spent a semester teaching a landscaping facility in English in La Bañeza, Spain, the Northeast Ohio area, and interned at Cleveland not knowing anyone in or Magazine, covering the anything about the industry. latest happenings across As I once again take a the Cleveland area, where I few steps out of my comfort currently reside. zone and delve into all When I first started things related to the rental my career in the B2B industry, I’m looking publishing industry as forward to getting to know an associate editor, you, our readers, I SOON REALIZED MY and learning more I had very little knowledge of the about the rental NEW ROLE WOULD landscaping and equipment space as REQUIRE ME TO golf course worlds, I work with the rest if any at all.

CONSISTENTLY STEP of the Rental team I soon realized to help revitalize the OUT OF MY COMFORT brand and provide my new role would require me to ZONE AND GET USED fresh content across consistently step our print and digital TO ASKING “WHY.” out of my comfort channels. zone and get used to Please feel free asking “why?” to reach out to me With this via email at swebb@ mentality, I dove in and leaned into the acbusinessmedia.com with story ideas, idea of “learning as you go,” complete tips, questions and more. with trade shows, conferences and media days. While learning the ins and outs of mowers, skid steers and dollar spot, I’ve developed a passion for the B2B magazine world. I love the “aha” feeling of information clicking into place at a product demo, the camaraderie of collaborating with industry peers, the idea that whole magazines are published about topics that the average person takes for granted.

Over the course of my time

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PRODUCT NEWS INSIGHT ■

■

www.ForConstructionPros.com/RENTAL Published by AC Business Media 201 N. Main Street, 5th Fl Fort Atkinson, WI 53538 (800) 538-5544 www.ACBusinessMedia.com

Publication Staff Publisher

Sean Dunphy sdunphy@ACBusinessMedia.com

Editor

Sarah Webb swebb@ACbusinessMedia.com

Staff Writer

Gigi Wood gwood@ACbusinessMedia.com

Columnist

Dick Detmer

Senior Production Manager

Cindy Rusch

Art Director

Willard Kill

Audience Development Manager Angela Franks

Advertising Sales (800) 538-5544 Kris Flitcroft

kflitcroft@ACBusinessMedia.com

Sean Dunphy

sdunphy@ACBusinessMedia.com

Nikki Lawson

nlawson@ACBusinessMedia.com

Megan Perleberg

mperleberg@ACBusinessMedia.com

Tadashi Soma

tsoma@ACBusinessMedia.com

www.ForConstructionPros.com Editor

Larry Stewart lstewart@ACBusinessMedia.com

Change of Address & Subscriptions — PO Box 3605, Northbrook, IL 60065-3605, Phone: (877) 201-3915 Fax: (847) 291-4816 • circ.rpn@omeda.com List Rental — Bart Piccirillo, Sr. Account Manager Infogroup Media Solutions (soon to be Data Axle) Phone: (518) 339 4511, E-mail: bart.piccirillo@infogroup.com Reprints — Megan Perleberg, mperleberg@ACBusinessMedia.com

AC Business Media Chief Executive Officer Chief Financial Officer Chief Digital Officer Chief Revenue Officer VP Audience Development VP of Operations Group Content Director

Ron Spink JoAnn Breuchel Kris Heineman Amy Schwandt Ronda Hughes Nick Raether Marina Mayer

Published and copyrighted 2022 by AC Business Media. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage or retrieval system, without written permission from the publisher.

SUBSCRIPTION POLICY: Individual subscriptions are available without charge in the U.S. to rental centers, equipment distributors, and other businesses with rental departments. To subscribe please visit www.ForConstructionPros.com. Publisher reserves the right to reject nonqualified subscribers.

One year subscriptions for nonqualified individuals: U.S. $35.00; Canada and Mexico $60.00; and $85.00 all other countries (payable in U.S. funds, drawn on U.S. bank). Single issues available (prepaid only) $10.00 each.

Rental (ISSN 2375-9925, Print | ISSN 2471-7657, online | USPS 686-370) is published eight times per year: January/February, March, April, May, June/July, August/September, October/November and December by AC Business Media, 201 N. Main Street, 5th Fl., Fort Atkinson, WI 53538. Periodicals postage paid at Fort Atkinson, WI and additional entry offices. POSTMASTER: Please send change of address to Rental, PO Box 3605, Northbrook, IL 60065-3605. Printed in the USA. Vol. 44, Issue 2, March 2022

www.ForConstructionPros.com/RENTAL

3/1/22 11:55 AM

T

KEEPS COMING BACK FOR MORE

The Easy Rooter

Equipped with Flexicore wire rope center cable.

®

The Easy Rooter is tough enough to handle abusive customers with little maintenance. From the rugged steel frame, to big 10" wheels, to the tough Flexicore® cable, count on it to take on the toughest jobs with the least amount of hassle for you and your customers.

The new heavy-duty cage cover fits snuggly around the cage to keep your customers clean and dry, yet is easily removable to inspect and clean the cable between rentals.

The Easy Rooter adds up to lower maintenance costs, higher profits and happier customers. To learn more, call the Drain Brains at 800-245-6200, or visit www.drainbrain.com/rental

MADE IN USA

© 2022 General Wire Spring

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3/1/22 11:56 AM

DIGITAL EXCLUSIVES //

THE LATEST ONLINE

ONLINE EXCLUSIVES CONTROL RISKS ON CONSTRUCTION PROJECTS TO MAINTAIN PROFITS IN 2022

Technology can help control risk on projects in a way that will lift 2022 profits, but establishing a company culture focused on addressing construction job site risks is the essential first step. forconstructionpros.com/21993184

KOMATSU INTELLIGENT MACHINE CONTROL 2.0 NOW AUTOMATES MID- TO LARGE-SIZE EXCAVATORS

New technology integrated into the PC290LCi-11, PC360LCi-11 and PC390LCi-11 excavator models can remove the requirement to manually adjust the bucket cutting angle to match the desired grade in exavating, fine grading, trimming and more operations. forconstructionpros.com/22056661

TRENDING NEWS

LATEST PODCASTS E 30: MERGING CONTECH FOR GLOBAL DIGITALIZATION In this episode of Rental’s The Bottom Line, Trackunit CEO Soeren Brogaard and ZTR CEO Sam Hassan discuss the companies’ merger. The two talk about the need for global construction applications in an environment where data-led on-site, supply chain and head office decisions will become increasingly critical. forconstructionpros.com/22080804

IMPROVED HYDRAULIC SYSTEM DESIGN, CONTROL, BENEFIT MACHINE EFFICIENCY

Erik Westergaard, senior systems engineer at Danfoss Power Solutions, said the company’s Digital Displacement pump technology—which the company has described as being inherently digital—has shown between 15% and 30% efficiency increases. The design of the pump itself combined with use of an electronic controller and advanced software controls enables these efficiency gains. forconstructionpros.com/22056291

HEAVY EQUIPMENT RENTAL PROVIDER DOZR SET FOR FURTHER U.S. EXPANSION

To fuel its continued growth, Dozr has raised $22 million in Series B funding. Co-led

by Silicon Valley’s Builders VC and BDC Capital, with participation from BaseCamp Equity Partners, this round of funding will help Dozr further expand its footprint across the United States. Dozr also added Mark Blackwell, general partner at Builders VC, and Jack Fraser, partner at BDC Capital’s Growth Venture Fund, to its board of directors. forconstructionpros.com/22055994

CATERPILLAR GLOBAL OPERATOR CHALLENGE IS NOW BIGGER AND EVEN MORE COMPETITIVE The three-round contest seeking to identify the world’s best machine operator will incorporate a wider range of construction equipment and take place in nearly 40 countries.

The event was first hosted in 2019 and had more than 10,000 entrants from 30 countries. forconstructionpros.com/22056480

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www.ForConstructionPros.com/RENTAL

3/1/22 11:56 AM

POWER TO MAXIMIZE PRODUCTIVITY Offering more power with less complexity and less weight. This engine delivers the productivity you need to keep your equipment running. Proven in a wide range of industrial applications, its power increases to 326 hp / 243 kW enabling replacement of engines with higher displacement with no impact on productivity.

To see how Cummins B6.7™ sets the bar for performance go to: cummins.tech/rental-march2022

performance

series

©2022 Cummins Inc.

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3/1/22 11:56 AM

MARKET WATCH CONSTRUCTION MATERIALS PRICES ROSE IN Q4 2021 BUT DECLINES EXPECTED IN Q1 2022

INDUSTRY FIGHTS POTENTIAL FEDERAL GAS TAX SUSPENSION The White House and top Democrats are considering a proposal to suspend the roughly 18.3-cents-per-gallon federal gas tax for the rest of the year, which could cut transportation revenue by more than $20 billion. The governors of Arkansas, California, Colorado, Florida, Illinois and Virginia are floating the idea of either rolling back existing gas taxes or preventing scheduled rate hikes from taking effect.

Senators Mark Kelly (D-AZ) and Maggie Hassan (D-NH) introduced S. 3609, the Gas Prices Relief Act. The Biden administration has not taken a public position on the proposal. The industry is staunchly opposed to the measure, as gas tax funds are used to pay for infrastructure improvements through the Highway Trust Fund. Most federal highway and public transportation programs are funded primarily with taxes on gasoline and diesel fuel, a “user pays” system to support construction and maintenance.

forconstructionpros.com/22068610

Linesight, a global construction consultancy firm, expects prices for construction commodities to decline in 2022 after hitting record highs last year. Much of the inflationary pressure on prices was due to shortages prompted by pandemic-related supply chain issues, increased global demand, labor disruptions and extreme weather. The findings are part of Linesight’s fourthquarter Commodity Report and price forecast, based on ACBM Staff interviews with 160-plus industry experts across the globe.

In 2021, prices for essential construction materials like copper, lumber, steel and cement hit record highs amid shortages. These higher costs and delays for delivery blunted construction output to $1.626 trillion compared to previous projections of $1.645 trillion. With the passage of the U.S. infrastructure bill, it is expected that total construction spending will jump to $1.701 trillion in 2022, a 4.5% increase over 2021. Linesight expects to see declines in prices in 2022.

forconstructionpros.com/22056153

WHERE 2022 US CONSTRUCTION HIRING WILL MEET THE TOUGHEST COMPETITION For 2022, ThinkWhy’s cloudbased HR and talent acquisition benchmarking software, LaborIQ, forecasts nearly 240,000 jobs gained in the construction and extraction occupations—3.9% growth. Worker shortages could hinder job growth in all industries.

LaborIQ predicts construction, healthcare, professional and business services and trade, transportation and utilities will recover jobs lost in 2022.

Competition for available labor is not letting up.

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The four metros expected to add the most jobs overall in 2022— New York, Los Angeles, Chicago and Dallas-Fort Worth—are also the four largest metros by population. Their projected job gains are over 880,000— one in four jobs added nationally this year will be in these top markets.

Job gains for larger markets play an outsized role in the national recovery and economy, but job growth as a share of population can shed light on relative improvements for some smaller markets and for larger markets

that show big improvements.

The top markets for job growth should expect to see 4% increases in employment over the course of 2022, adding a combined 845,000 jobs. Nationally, job growth in 2022 is expected to be just over 2%. Places like Las Vegas, Honolulu, Myrtle Beach and Orlando that saw huge drops in tourism should add more jobs as travel, especially business travel, start to pick up.

forconstructionpros. com/22056303

www.ForConstructionPros.com/RENTAL

3/1/22 11:45 AM

Power and durability.

The foundation we build upon.

Construction Lineup

Durable Kubota engines

Upgraded tech & features

Get the groundwork right with the Kubota construction lineup. Reliable, comfortable track loaders. Productivity-boosting skid steers. Powerful wheel loaders. Heavy-duty utility vehicles. And #1 selling compact excavators.* All built around dependable Kubota engines. It’s equipment built the right way. So you can build your reputation.

** KubotaUSA.com *According to 2020 data from Off-Highway Research including all Kubota Group brand sales. **Based on the 2021 Equipment Watch Awards for Highest Retained Value and 5-year residual value – Large Skid Steer Loaders. © Kubota Tractor Corporation, 2021. This material is for descriptive purposes only. Kubota disclaims all representations and warranties, express or implied, or any liability from the use of this material. For complete warranty, safety and product information, consult your local Kubota dealer. For the complete disclaimer, go to KubotaUSA.com/disclaimers and see the posted disclaimer.

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3/1/22 11:45 AM

MARKET WATCH STUDY: OWNERS PULLING CONTRACTORS INTO DIGITAL CONSTRUCTION WORKFLOWS A research report released Feb. 17

by Trimble and Dodge Construction Network details how project owners are now the chief drivers of digital workflows. The study report, Connected Construction, the Owner’s Perspective, focuses on owners, but because the subject matter deals in part with automation of intercompany processes, 236 general contractors and 232 trade contractors were also included. The data says owners are digitizing.

Takeaway #1 Contractors Must Adopt Digital While in the past, contractors were leading the charge on pushing for a digital workflow with owners, the tide seems to have turned. The results show 80% of project owners in the study

said they used digital workflows, not just internally, but externally with their project teams.

applications and field communication applications. The more contractors digitize their processes, the more visibility they get into the root causes of problems.

Takeaway #3 General Contractors are Piggy in The Middle The most frequent communication breakdowns owners reported were with general construction and construction managers, yet they were also the most likely Trimble-Dodge Construction Network to use a digital workflow Takeaway #2 Cause of Construction with external parties, but this does not Delays and Errors Matters mean subcontractor or specialty trade One of the main benefits to owners of contractors are better at digital workflows a digital workflow is the ability to trace or communication than generals. errors and delays to their root cause. forconstructionpros.com/22068611 Contractors are actively adopting some systems like intercompany change order

CONSTRUCTION BACKLOG AND CONTRACTOR CONFIDENCE BOTH SLIDE LOWER IN JANUARY Associated Builders and Contractors (ABC) reported that its Construction Backlog Indicator declined to 8 months in January, according to an ABC member survey conducted Jan. 20 to Feb. 4. The reading is down 0.2 month from December 2021, but it is up 0.5 month from January 2021.

ABC’s Construction Confidence Index readings for sales, profit margins and staffing levels all inched lower in January.

All three indices remain above the threshold of 50, indicating expectations of growth over the next six months.

View ABC’s Construction Backlog Indicator and Construction Confidence Index table for January 2022.

“Despite the omicron variant, ongoing supply chain issues, elevated energy and materials prices and rampant staffing shortages, the average nonresidential contractor remains upbeat,” says ABC Chief Economist Anirban Basu. “Perhaps the most remarkable aspect of the survey findings is the expectation that industry profit margins will expand during coming months, implying that contractors expect to pass along enough price increases to project owners to countervail the rising costs of construction service delivery.

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Associated Builders and Contractors

“The last two months have indicated declining backlog, but the dips are not cause for particular concern,” Basu says.

“Declining backlog indicates that some projects are postponed or canceled in response to rising costs and/or extended delivery timelines. The principal challenge for contractors remains a lack of sufficiently skilled labor, a structural issue that will not go away soon and a circumstance contractors have dealt with for years. The situation is likely to deteriorate further as federal infrastructure dollars begin affecting the economy more forcefully in the near future.”

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3/1/22 11:46 AM

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MANUFACTURER PROFILE Advertisement

EQUIPTER RB4000

ALLEVIATES LABOR SHORTAGE

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anual labor industries like roofing and general construction are being hit hard not only by supply shortages and inflation but also by the Great Resignation. It’s becoming more difficult for employers to find and retain qualified individuals. Capable of performing the work of two crew members, the Equipter RB4000 drivable dumpster handles the heavy lifting all day long.

The towable Equipter RB4000 lifts up to 12 feet and features a 4-foot rollback extension that provides protection for delicate landscaping features. The 4.1 cubic-yard aluminum container can hold and transport up to 4,000 pounds of debris, making it ideal for roofing tear-off, apartment gutting, and even picking up materials at local supply companies.

Initially designed for use in residential roofing, the Equipter RB4000 is also used by general contractors and fire and water restoration companies across the United States.

Jeremy Hardy, Superintendent at The Atkins Group in Illinois, states about their apartment remodeling jobs, “The Equipter’s helped us out because you don’t have to have that extra person that’s going around sweeping up and picking up trash and then hauling it down the stairs.”

Equipter works with over 200 third-party rental locations across the United States to make the Equipter RB4000 drivable dumpster available to those who need it. The company’s website features a Find A Rental tool to help point contractors to the closest location to them, which in turn gives those rental companies increased exposure.

Visit www.equipter.com to learn more about the Equipter RB4000 and more unique rental equipment.

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www.ForConstructionPros.com/RENTAL

3/2/22 11:05 AM

GOOD HELP DOESN’T HAVE TO BE HARD TO FIND The Equipter RB4000 drivable dumpster helps hard workers in roofing, general construction, restoration, and more get jobs done faster and cut back on cleanup.

Help your customers make up for low manpower. Add the Equipter RB4000 to your rental fleet today.

CONTACT EQUIPTER TODAY 717-553-0675 sales@equipter.com www.equipter.com/rb4000

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3/1/22 11:49 AM

INDUSTRY NEWS POINT OF RENTAL ESTABLISHES PRESENCE IN CANADA

Point of Rental

Point of Rental is establishing an official on-the-ground presence in Canada.

Ben Sinclair, who joined Point of Rental in 2019 after more than a decade of experience working at his family’s rental store in Australia, moved to Canada on Jan. 10. He’s since been joined by a new solutions engineer, Irfan Ahmed, who started with the company on Feb. 7.

After a couple of years of pandemic-related travel issues between the U.S. and Canada, the company decided it needed to establish a Canadian center of operations to focus on its considerable Canadian user base. As the Toronto-based unit grows, the team hopes to deepen Point of Rental’s relationship with the country’s rental industry.

“Our goal over the next six months is to go out and see customers, see how their business is going and how they’re using Point of Rental,” Sinclair says. “As we build the team and bring more people on, we’ll have people they speak to on a regular basis, directly.”

Irfan is joining the rental industry for the first time, although he has a background in both civil engineering and software. He also is fluent in both English and French, allowing him to work with users throughout Canada.

The team will be attending Quebexpo in March 2022, and as industry events open back up and restrictions ease, they’re looking forward to meeting the people that drive the Canadian rental industry forward.

WHAT COMP

CLIEN

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forconstructionpros.com/22056360

Your best is our mai

ARA PREDICTS DOUBLE-DIGIT EQUIPMENT RENTAL REVENUE INCREASE IN 2022 The latest updated quarterly American Rental Association (ARA) forecast for equipment rental revenue calls for a 10.2% increase in 2022 to reach $52.7 billion in the United States, a slight increase from the previous forecast in October 2021.

The revenue forecast also calls for equipment rental, which includes construction, industrial and general tool revenue, to increase by 6% in 2023, 2.9% in 2024 and 3.4% in 2025 to reach $59.5 billion.

Construction and industrial equipment rental revenue is expected to lead the way with a 12% increase in 2022 to $38.9 billion, while general tool is expected to grow by 5% to reach $13.9 billion this year. The largest uncertainty facing the industry is the current rate of inflation, which was recently reported to be 7.5%, year over year.

“It is clear that supply chains have a lot to do with the current inflation rate, and unwinding the current backlogs will

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increase the supply of goods and bring prices back down,” says John McClelland, ARA vice president for government affairs and chief economist.“However, if it takes too long to unwind the supply chain bottlenecks, inflation can get backed into things like wages and cause the Federal Reserve to act more aggressively, slowing economic growth.”

Although supply chain issues have caused delays in delivery of fleet to equipment rental companies, the ARA forecast projects a 36.7% increase in investment in inventory to reach $14.4 billion in 2022, exceeding the previous annual high of nearly $13.8 billion spent in 2019.

The forecast calls for another investment increase of 10.1% in 2023 to reach nearly $15.9 billion. The ARA forecast for Canada calls for 5.5% growth in 2022.

forconstructionpros.com/22068755

www.ForConstructionPros.com/RENTAL

3/1/22 11:43 AM

MANUFACTURER PROFILE Advertisement

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including accounts receivable, integrated credit card processing, intuitive graphical dashboards, website integration, and hundreds of system-wide reports. Advanced modules include work order, preventive maintenance, purchase order, telematics integrations, and exciting and sophisticated integrations with 3rd party services. Consistently named one of Colorado’s top 100 WomenOwned businesses, Alert is actively working on multiple new userguided projects. Visit us at www. alertrental.com to learn more about how we can become more than just a vendor, but a business partner.

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INDUSTRY NEWS BIGRENTZ NAMES ARABIA, BELMONT TO HIGH-LEVEL POSITIONS will be responsible for the alignment and prioritization of company investments and ensuring operational excellence across the company.

Belmont brings more than 30 years of experience to BigRentz with areas of expertise in operations, quality, business development, strategy, integrations, and mergers and acquisitions.

Belmont will be responsible for the alignment and prioritization of company investments and ensuring operational excellence across the company. Belmont comes to BigRentz from MNX Global Logistics where he and Cannon previously worked.

Belmont also has significant Big Rentz

BigRentz, a large online equipment rental company, promoted Jim Arabia to chief marketing officer for continued strategic growth.

In this newly created position, Arabia will have enterprise responsibility for the company’s strategy, planning and implementation of BigRentz’s marketing and customer retention initiatives. Arabia is a growth-focused leader with strong marketing experience who most recently served as vice president of marketing.

Despite COVID-19 and the associated obvious industry challenges to BigRentz, Arabia grew new customer segments by more than 38%.

BigRentz also recently hired Tom Belmont as the new COO. Belmont

experience expanding companies globally, all while sustaining their high growth and profitability.

Belmont has a bachelor’s degree in business management/legal from St. John’s University, New York. forconstructionpros.

com/22031208

KWIPPED CHANGES COMPANY NAME TO APPROVE AS IT EXPANDS EQUIPMENT FINANCING SCOPE Kwipped changed its name and will now do business as Approve. Launched in 2015, the B2B equipment marketplace and e-commerce platform enables businesses to efficiently rent, buy or finance a wide range of equipment from a network of participating equipment suppliers. The company developed a tech-enabled equipment finance solution, which was embedded into the company’s platform.

“When we started offering financing on Kwipped, we quickly realized the traditional equipment financing experience was cumbersome, inefficient and often ended in declined applications or outrageously high rates. So, we built technology to streamline equipment financing transactions on our marketplace,” says Approve CEO Robert Preville. “Our equipment suppliers were so impressed with the approach that they asked us to make it available to them off-platform.

“Our new financing tech enables equipment suppliers to embed equipment financing at all of their points of sale and create a seamless and integrated payment solution for their customers. We call this product Approve and now have a massive opportunity to reimagine the $400 billion equipment finance industry.”

Approve is a SaaS solution that enables equipment

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manufacturers and distributors to integrate financing at every point of influence in an equipment buyer’s journey.

The platform is linked to a curated network of the nation’s top equipment finance companies that provide the funding.

Finance applications are algorithmically matched to specific lenders identified as most likely to approve the application and to offer the lowest rates.

Approve brings financing to the forefront of that journey by embedding financing estimates linked to a digital application at every B2B point of sale, including: ■ E-commerce product pages ■ Custom quotes ■ Brick-and-mortar stores ■ Trade shows ■ Spec sheets using QR code technology “Our customers’ end users should never shop for an equipment product without knowing immediately that an affordable monthly payment option is available and one click away,” says Preville.

forconstructionpros.com/22044064

www.ForConstructionPros.com/RENTAL

3/1/22 11:43 AM

MANUFACTURER PROFILE Advertisement

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This is a full-brightness light tower that provides more mean light output than a traditional metal halide tower, but uses 80% less energy. The Beacon LED Tower provides little to no upkeep so rental companies can make a quick return on investment.

Additionally, the new Beacon978 LED Light Cart is the highest quality light cart on the market. It is fully weatherproof with an all-steel construction and has no bulbs or ballasts to deal with, plus it boasts 22,5000 lumens per light head.

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info@lindequipment.net

1.877.475.5463 MARCH 2022

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STATE OF RENTAL //

By Alexis Sheprak

STATE OF THE INDUSTRY: Resilient Rental

Industry Ready for 2022

I

t’s a word that we’ve all heard a lot over the past three years: resilience.

Throughout 2020, companies and business owners alike had to adjust their business models to survive the pandemic and its consequent challenges. As the situation morphed into a variety of surprising issues, the industry tried to navigate the ever-changing business environment. Many thought 2021 would finally bring resolution. Instead, new challenges presented themselves in the form of supply chain issues, labor shortages and limited equipment supplies.

Now, we’ve entered 2022 with the hope that rental business owners and the rental industry may get a break and not have to be resilient. Sure, it’s a positive sentiment and an even better attribute, but the definition of “resilient” is being able to withstand or recover quickly from difficult conditions—and we’ve had enough difficult conditions in the last three years to cover a lifetime.

Thankfully, industry experts are predicting a strong 2022 for the construction and rental industries despite a few nagging challenges. According to a recent study, the global equipment rental market is set to gain traction to a projected $145 billion by 2026. One company profiting from the uptick in rental popularity has been United Rentals.

In a January report, United Rentals claimed $2.78 billion in total revenue during the 2021 fourth quarter, up from $2.28 billion in the 2020 fourth quarter. Fourth quarter rental revenue was $2.31 billion, a 24.7% increase compared to $1.85 billion during the same time last year.

Rental revenue in 2021 was $8.21 billion, up from $7.14 billion in 2020. And total revenue for 2022 is expected to range from $10.65 billion to $11.05 billion.

“Our 2022 guidance reflects the optimism of our customers, as well as our confidence in leveraging our competitive advantages over the longer term,” says Matthew Flannery, United Rentals CEO.

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Respondents to the Baird/RER Q4 equipment rental survey, released in January, confirm Flannery’s sentiment.

They expect rental revenue to grow 7% year-over-year in the first quarter of 2022. Fleet spending is expected to increase 7.6% over the next six months, and an increase in spending on access equipment is predicted to be about 4.9%.

However, there are still industry dynamics that might impede tremendous growth. Issues such as equipment availability and the current labor shortage crisis could make it difficult for rental business owners to capitalize on what should be a robust environment.

In fact, Baird/RER survey respondents said that the labor shortage has led to higher wages, which has impacted rental rates and margins and lost business. Thirty-seven percent say they don’t have enough workers to effectively run their business, and 43% say they believe business is being lost because customers don’t have enough labor.

Another source, The Civil Quarterly from Dodge Construction Network, reveals more concern about finding skilled workers. Seventy-two percent of civil contractors expect difficulty finding skilled workers, an increase over the 58% who reported that concern one year ago. Furthermore, 89% believe that the cost of workers will increase in the first half of 2022.

However, with great difficulty comes that word we used in the beginning of the article: resilience. And manufacturers are stepping up to the challenge with innovative ways of dealing with the labor shortage. One such method is donating to beneficial charities. For example, Crew Collaborative, a nonprofit organization aimed at strengthening the construction workforce, has received a $15,000 grant from The Toro Co. Foundation to support its efforts.

Apps and job boards are more tools that could aid in modernizing the workforce recruitment process. Take BoomNation, for example, which is a new app community

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where skilled workers find applicable content, can communicate with employers and find jobs within their field of work.

Another exciting endeavor is the American Rental Association’s job board, which hopes to grow the workforce and ensure the future success of the equipment and event rental industries.

Tackling the job shortage at its source could be a solution to a problem. EquipmentShare announced plans to launch an apprenticeship program in January 2022. Combined with its internship program and veteran recruitment efforts, this new venture will be a part of the company’s mission to develop a skilled workforce pipeline for recruitment purposes.

When all is said and done, the rental industry is on the rise. The electrification of equipment will open new avenues of business, the sustainability of rental will push boundaries and contribute to a changing world and business owners and companies alike will continue to be resilient in the aftermath of the pandemic.

If the last three years have taught us anything, it’s that things have changed, but we can still come together, grow and succeed.

So, in the spirit of “coming together,” I wanted to gather more insight into the mindset of manufacturers heading into 2022 and beyond. I spoke to industry members about the trends, topics and challenges they predict for the upcoming year.

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Kyle Clements, president of Quipli 1. What is your outlook for the rental industry in 2022?

I believe that the rental industry will continue to outperform in 2022 with strong consumer demand and increased equipment and software investment heading into the year.

With equipment shortages, coupled with the construction boom, utilization and uptime will be more important than ever.

Rental has additional long-term tailwinds from the environmental community, as rental continues to prove it’s a more sustainable and environmentally friendly solution with reduced carbon dioxide emissions throughout a rental asset’s life cycle compared to an owned unit.

2. What do you think will be the year’s three big movements and/or trends?

■ The power of the internet: The rental industry had a decade of e-commerce boom in just the past two years, something that will continue into 2022.

■ Empowering local entrepreneurs: Small business applications have soared to record heights since 2020 (over 5 million applications in 2021), many of which are individuals starting rental companies for the first time.

■ Focus on utilization: How do rental companies get more done with less in 2022?

3. What will be the rental industry’s biggest challenges, and how will the industry overcome them?

Inventory availability is key in 2022.

Catch me if you’ve heard the phrase “supply chain issues” in the past six months. Being able to maximize your equipment uptime, utilization and access for renters is the name of the game this year. I believe the rental companies that are able to lean into technology to drive improved customer experiences can deliver longterm customer loyalty well past 2022.

4. What is, in your opinion, the “word” of the year for rental?

“Access” is my 2022 word for the rental industry for two reasons.

First, I believe the rental market will continue to expand dramatically with more homeowners and contractors experiencing access to rental for the first time. I think the adoption of easier renting experiences powered by technology and the large national chains investing in this segment will enable homeowners as well as commercial contractors like never before.

Secondly, the rental companies that have access to quality inventory in 2022 will be well positioned to meet the high demands expected from the market. The companies that had the foresight to plan ahead 12 months ago are set to have a strong 2022.

Peter Maginnis, general manager of Makinex Construction Products

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1. What do you think will be the year’s three big movements and/or trends?

■ Battery tools, which is why we developed our mobile charging pod as battery usage/charging and storage can be a challenge for rental companies.

■ Operational efficiencies due to the labor shortage. Products like our powered hand truck lifting device can help with staffing shortages and keep rental companies operating at full capacity with less manpower ■ Sustainability is in everyone’s mission statement and a main focus. This will be a big trend moving forward in the Americas.

2. What will be the rental industry’s biggest challenges, and how will the industry overcome them?

The uncontrollables. For example, government mandates, shipping times and expenses and component supply.

Wayne Harris, CEO of Point of Rental 1. What is your outlook for the rental industry in 2022?

The rental industry is healthy overall.

On the equipment side, the big challenge—supply chain issues— provides a short-term benefit in that it’s affecting contractors too, pushing them to rent equipment more because they can’t buy new. Of course, this will raise the average fleet age for rental companies, which will increase repair costs, parts ordering and mechanic needs. Overall, though, there’s definitely a positive outlook in all the major rental sectors after the last

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couple of years.

2. What do you think will be the year’s biggest technology trends?

We’re seeing more interest in automated parts management this year. Interest in SaaS options to run various aspects of an operation is also pretty big—in part, because coverage networks are getting better and also because servers are affected by the same supply chain shortages affecting other physical products.

3. What will be the rental industry’s biggest challenges, and how will the industry overcome them?

There are two main issues: getting great people and getting great equipment (and the parts that help maintain it). The supply chain issues are a bit beyond rental companies’ control, but as I mentioned, in the short term, they’ve actually been kind of beneficial in that they’ve driven up demand for rental equipment.

Getting great people has always been a challenge. Some are finding success with gig job apps—it’s been useful for no-training-required tasks, freeing up your more experienced staff to take care of the things they’re trained for. Some are getting creative with their ads and emphasizing the benefits of a job that can involve some hard labor. And, of course, business leaders continue to find ways to run their businesses with fewer people by increasing their efficiency, either by implementing productivity tools like rental software or streamlining other processes.

4. What is, in your opinion, the “word” of the year for rental?

Green. As interest grows in environmental friendliness, rental is in a

position to show its leadership in that space. Allowing lots of people to use one item again and again reduces production needs and conserves resources. It’s also the color of money (at least here in America), and the overall outlook for the industry is positive, so businesses should see their fortunes improve in 2022.

Simon Meester, president of Genie 1. What do you think will be the year’s three biggest innovations?

In 2022, I think you’ll see a continuation of some trends that have been developing around the industry, and that is a continued focus on: (1) electrification; (2) digitalization; and (3) total cost of ownership.

Electrification certainly isn’t anything new, but the pace of adoption and interest in electrification is continuing to accelerate. That’s because you’re seeing a convergence of several factors: job site regulations are becoming increasingly stringent, which is driving demand; electrified equipment can offer better and more efficient performance in many instances; and costs to implement the technology are coming down. Finding that balance where performance, cost and demand come together is really at the core of Genie’s approach to electrification.

The second thing is digitalization.

Again, this isn’t new, but telematics continues to be more widely adopted and used by companies in the aerial rental market to manage, maintain and

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utilize their assets more effectively and efficiently. Genie was among the first to bring that to market, and we have a substantial congregation of customers using our Lift Connect telematics for a variety of use cases.

The third thing is total cost of ownership. It’s thinking very intentionally about how to deliver quality while also reducing the cost of owning and maintaining Genie equipment.

It’s purposeful innovation.

It’s meeting customer and industry needs for durable, reliable, quality equipment that performs great on the job site, is cost-effective to own and adds value.

2. What is, in your opinion, the “word” of the year for rental?

Supply. Our customers are seeing strong demand and, as a result, are placing strong demand on us. And since the industry is coming out of a supply glut caused by the first months of the global pandemic, we are now all very busy (suppliers/manufacturers/ customers) working to ramp back up again and catch up on demand.

Demand and supply will always swing and trade places in free markets, and this industry certainly has proven it knows how to deal with volatility.

Henry Lawson, director of sales for Takeuchi-US 1. What is your outlook for the rental industry in 2022?

I spent 35 years in the rental industry before joining Takeuchi, so rental is something I’m very familiar with.

From the contact I’ve had with Takeuchi’s partners, including national rental chains and others around the

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industry, I’m hearing that demand is projected to be very strong this year.

There’s a lot of work available out there, which is definitely a positive factor.

However, we all know how difficult it has been to get supplies lately, which is pushing project timelines. That’s where equipment rental comes into play. While purchasing a machine may be challenging right now, renting is still an option, one that can help equipment owners and operators learn which machines they prefer before making a purchase when the channel fills back up.

2. What do you think will be the year’s biggest innovations?

There’s no doubt that electric equipment will become an integral part of the industry. We have one electric model we’re producing right now— the TB20e compact excavator—and we’re partnering with United Rentals to unveil the machine at some of its locations before releasing it to our dealers and partners later this year.

That said, we’re still in the infancy stage of electric machines becoming a bigger part of the industry. There is a big demand for them already, and that’s because they work well in so many applications and have less maintenance and lower emissions than diesel models.

3. What will be the rental industry’s biggest challenges, and how will the industry overcome them?

The biggest challenge is supply chain disruption, but we’re confident there will be a correction in the near future.

4. What is, in your opinion, the “word” of the year for rental?

“Opportunity.” I really think there’s

a huge amount of opportunity in the rental channel to draw in more people who haven’t rented equipment on a consistent basis before. There’s also an opportunity to overcome supply chain challenges by running equipment a little longer.

The service side of the business will need to find ways to maintain equipment and keep it running longer.

There’s also an opportunity to work with new manufacturers in the supply chain. Manufacturers can expose their products to people who haven’t considered those machines before.

Frank Nerenhausen, executive vice president of Oshkosh Corp. and president of JLG Industries 1. What is your outlook for the rental industry in 2022?

Heading into 2022, we are seeing robust demand for access and material handling equipment and overall, a solid recovery following two years of managing pandemic-related business challenges. This demand is being empowered by multiple tailwinds including replacement demand, fleet growth and a near synchronous increase in construction and construction-related activities.

Though our sentiment is generally positive, there are several headwinds we continue to face, including ongoing pandemic interruptions, supply chain constraints, labor shortages and inflationary pressures. We are aggressively pursuing multiple initiatives that address these challenges with the intention to establish a more agile and stable business model that supports a longer-term, sustainable recovery beyond 2022.

2. What do you think will be the year’s three big movements and/or trends?

JLG is seeing several emerging patterns of change across the rental industry

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■ The digitally powered customer.

In 2022, the industry will continue to see the evolution of “digitally powered customers.”

Access to equipment will become increasingly intelligent through integrated control systems and technologies that enable advanced analytics, active safety and autonomous or assistive operation.

Where customers may’ve resisted new technologies in the past due to concerns about added cost and complexity, we are seeing less of those barriers. Users are more willing to embrace technologies that eliminate pain points and drive efficiencies that provide tangible benefits.

Today, nearly all equipment and devices are connected to the internet, and the data is moving to the Cloud, making real-time data and information accessible anywhere/anytime.

Expect to see a greater shift toward automation, machine learning and e-commerce over the course of 2022.

■ A shift in focus from fossil fuel consumption toward clean energy solutions.

An interest in alternative energy solutions is a growing focal area across many industries, including the construction industry. JLG sees a varying degree of shift toward clean energy solutions with a focus on decarbonization. Europe and China are leading the way, with North America remaining a bit of a lagger. Companies here are beginning to recognize the trend but are not fully leaning in. We believe that as pending regulations are passed and technology becomes more affordable, adoption will accelerate.

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■

New ways of working.

The COVID19 pandemic required employers and employees to find new and creative ways to get work done outside traditional office and job site environments. This required the adoption of new tools and technologies. We are seeing some companies adopt permanent remote models and abandon office space.

Others have implemented hybrid work schedules and downsized their facilities, while others have fully resumed in person work.

Construction workers are no different than those in adjacent industries in their desire for greater, long-term work flexibility. With so many work-from-home jobs now available, companies are quickly adjusting to retain and attract talent.

Look for an increase in autonomous and semi-autonomous robotic features that allow machines to be operated or monitored by a skilled tradesperson at a safe distance from the work area. Remote project managers and service technicians may also become more commonplace as new digital technologies facilitate sharing of real-time job site data and machine diagnostics. We expect to see construction company workers become more distributed in 2022.

3. What will be the rental industry’s biggest challenges, and how will the industry overcome them?

Ubiquitous supply chain, workforce and inflationary pressures are impeding users, rental companies and OEMS alike. In 2021, we asked our customers to be patient with us. We are asking for continued patience in

early 2022 as we navigate and develop solutions to mitigate challenges and safeguard future operations.

While the global supply chain remains constrained, we expect it will normalize over the course of the year.

We’ve learned that we need to become more geographically adaptive and agile and are exploring nearshoring opportunities to regionalize our supply chains. Regionalization will result in localized business and job growth.

Our ultimate goal is to stabilize our supply chain without a compromise to product quality.

We have seen behavior shifts as it relates to the timing of fleet planning.

Labor also remains in high demand.

Finding, retaining and keeping talent safe, while being as productive as possible, is a hurdle nearly every business will need to overcome in 2022.

Companies are rethinking how they attract and retain employees.

Last, inflationary pressures are something we continue to contend with. As supply chain and workforce challenges begin to normalize, we are hopeful that inflation will do the same.

4. What is, in your opinion, the “word” of the year for rental?

2022 will be a “transformative” year. The complex interplay between beneficial tailwinds and challenging headwinds set the stage for rapid change. Companies will need to rethink the way business is transacted on nearly every level, including how we manage our teams and the products and technologies we develop.

This pace of change can only be supported in an industry with a healthy ecosystem like rental. Maintaining discipline during challenging periods and adhering to sustainable business practices allows us to continue to invest in and develop the transformational innovations that will drive progress across the industry for years to come.

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S A

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Quality By Design is integral to the manufacturing process, ensuring that every Genie machine coming out of our factories is high quality and delivered free of issues and defects.

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STATE OF THE CONSTRUCTION INDUSTRY //

By Curt Bennick

2022 STATE OF CONSTRUCTION:

NEW YEAR BRINGS MORE UNCERTAINTY WITH SUPPLY CHAIN AND LABOR CONCERNS While the supply chain issues will be corrected over time, the labor shortage is expected to intensify.

A

s much as we all want to put 2021 in the rearview mirror, the supply chain and labor issues initiated by the COVID-19 pandemic are expected to persist into 2022.

Many manufacturers were hoping supply chain disruptions would start winding down by now, but we are facing sourcing issues well into this year, and when things will get back to normal is really a guessing game at this point. So, while the recently passed infrastructure package should help generate new construction activity, sourcing materials and equipment may prove challenging, at least in the first half of the year.

In terms of labor, Gen X, which has been the bedrock of the skilled labor workforce, retired in record numbers during the pandemic. The industry has not developed a talent base to replace those who have left, which will prove to be an ongoing challenge.

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Technology is one answer to help in the short term, but the industry needs to attract a new generation of workers while competing with almost every other industry that has found itself facing shortfalls, as well.

To get a gauge on these and other factors likely to impact construction in 2022, we reached out to several leading industry economists to get their outlook on the headwinds and opportunities the industry is facing.

Q: What are likely to be the major drivers of the commercial and housing construction markets in 2022, and do you anticipate the current level of new construction to be sustained in both segments?

Ken Simonson, chief economist, Associated General Contractors of America (AGC): Contractors are expecting greater opportunity in nearly

all market segments in 2022. AGC of America’s annual Hiring and Business Outlook Survey, which drew more than 1,000 responses from contractors in every state, found respondents, on balance, expect bidding opportunities to increase in 15 out of 17 market segments.

The most widespread positive expectations were for infrastructure categories—highway and bridge, transportation facilities and water and sewer projects—which most likely reflects optimism about funding boosts from the recently enacted Infrastructure Investment and Jobs Act (IIJA), but there were also strongly positive net readings (that is, the percentage of respondents who expect the dollar value of projects to increase minus the percentage who expect a

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decrease) for such predominantly private sector categories as warehouses, hospitals and other healthcare, which includes clinics, testing facilities and medical labs. The only negative views, on net, were for retail and private office construction.

Richard Branch, chief economist, Dodge Construction Network (Dodge): In 2021, the construction industry staged a strong rebound, improving 14% from 2020 despite the continued impact of the COVID-19 pandemic. This rebound, however,

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was fairly uneven and favored several project types, such as residential, warehousing, manufacturing and healthcare. Meanwhile, office, hotel and education construction languished.

Construction starts should show notable improvement in 2022, fed by the strengthening economy, the numerous projects in the planning pipeline and the recently enacted infrastructure program. This optimism, however, will be countered by continued high material prices, shortages of key materials and an acute shortage of skilled labor.

For 2022, we anticipate that total construction starts will post 9% growth over 2021. While residential construction will continue to play a large role in [this year’s] growth,

C Laney and Sons

With most construction segments expecting positive growth, labor and materials will be the biggest challenges in 2022.

a more balanced recovery in the nonresidential sector will begin.

Anirban Basu, chief economist, Associated Builders and Contractors (ABC): Housing will continue to show signs of strength in the market. Interest in home ownership remains quite elevated in America. Part of the reason for that is ultralow mortgage rates. Economic theory would predict that when you have significant inflationary pressures, that would tend to drive up mortgage rates and other rates of interest. That hasn’t happened yet. [In 2022], we may finally get some meaningful interest rate increases, but that’s speculative.

For right now, mortgage rates remain extremely supportive of home ownership and home purchasing.

The demographics of America are quite conducive to home sales as millennials come of age. The biggest thing here is the inventory of unsold homes continues to be very low. That represents an opportunity for builders to meet unmet demand. Based on recent housing starts data, that’s precisely what they are doing.

It is conceivable that at some point, there will be a bit of a housing supply bubble. It’s not happening now. Most neighborhoods are associated with a dearth of available inventory. There isn’t enough housing to purchase. We are seeing that private equity is getting involved. They’re beginning to build more houses and renting them out. At some point, those houses will hit the market for sale and, at that point, we may see some excess supply in certain

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STATE OF THE CONSTRUCTION INDUSTRY communities.

Danushka NannayakkaraSkillington, assistant vice president for forecasting and analysis, National Association of Home Builders (NAHB): On the supply side, we have a housing deficit right now.

Freddie Mac estimates it to be 3.8 million units, and the National Association of Realtors estimates the housing deficit to be above 5 million. At NAHB, we estimate around a 1 million deficit.

The combination of these factors are driving residential construction right now—the demographics tailwind and the housing deficit.

We are forecasting single-family construction to be flat (up only 1% growth compared to 2021) in 2022.

This is because of the supply side issues, which are not just high cost of building materials but the lack of skilled labor, lack of buildable lots, access to AD&C financing and high regulatory costs. All of these issues together are hampering single-family construction. For the multifamily housing segment, we are forecasting strong growth, up 6% compared to last year. We anticipate close to half a million multifamily units for 2022.

Q: What are the major drivers for public construction in 2022?

AGC: States and many local governments are generally in good fiscal shape and should be able to devote more funds to infrastructure, thanks in part to federal dollars received over the past two years.

In addition, federal funds from the IIJA, also known as the bipartisan infrastructure bill, will begin to be awarded in 2022, although actual

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construction will ramp up more slowly.

Highway and bridge projects are likely to get started the soonest, but the largest percentage increases are likely to go over time to water, sewer, broadband and alternative energy projects that have not previously received much federal funding.

ABC: With respect to commercial construction, it will be much weaker.

There have been some behavioral changes during the pandemic. More Americans are shopping online. You saw a wave of retail bankruptcies last year, including the likes of Pier 1 Imports, True Religion, Lord & Taylor, GNC, Nieman Marcus, JC Penney, J Crew, Francesca’s Guitar Center. In their way, those bankruptcies tend to leave a lot of vacant retail space behind.

So, one would not expect to see a lot of new retail space constructed in America based on historic patterns.

Office space demand obviously is down thanks to remote working.

Occupancy rates look pretty reasonable in many cases, but they are a false read. In many cases, buildings are legally occupied because there’s a lease involved and the property was leased before the pandemic. In fact, many of these office buildings are largely empty.

Very few workers have returned to date. As office space leases come up for renewal, you will see many office space users end up leasing less space or perhaps no space at all.

Dodge: It will be a challenge for the construction sector to maintain the 2021 level of activity in 2022. However, as the recovery in construction evens out, there will be more opportunity spread across the public and private space.

Q: What factors could play an instrumental role in raw material costs in 2022?

AGC: Fortunately, materials costs are no longer rising across the board. For instance, Steel Market Update’s hotrolled coil price tumbled more than

20% from early September to early January, but the price was still nearly triple the prepandemic level of early 2020. Thus, prices may not set new record highs in 2022, but they are likely to remain volatile and unlikely to sink back to earlier marks.

ABC: The first half of the year could be associated with significant inflationary pressures or, at a minimum, these high prices staying high. During a recent 12-month period, construction materials prices rose 23.5%. The Consumer Price Index is up 6.8%; the Producer Price Index is up 9.6%.

Materials prices have really been inflationary, including diesel fuel, natural gas, iron and steel.

It is conceivable at some point, perhaps through the latter stages of next year, that you could see the bottom fall out of some of these commodity prices. What might happen is that demand growth begins to stall because we have come out of the pandemic. Demand stabilizes instead of ratcheting higher as we reopen the economy. Meanwhile, suppliers have had a lot of incentive to increase capacity because the price is right and that’s a profit-making opportunity. All of that can come together... to conspire to cause prices to dip, but as we enter 2022, it appears that we are poised for quite high prices.

Many contractors have lost some degree of work because bids have come in too high. There is nothing they can do about it. The materials cost what they cost, and the workers cost what they cost, but that’s an issue for the industry.

Dodge: Rising costs, skilled labor shortages and lack of materials continue to create challenges for general contractors and their clients, sending the U.S. Chamber of Commerce Commercial Construction Index down one point to 65 in the final quarter of 2021.

There is, however, reason to believe that we’re starting to see the very faint

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3/1/22 11:21 AM

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STATE OF THE CONSTRUCTION INDUSTRY glimmer of the light at the end of the tunnel. Factory output in the U.S. is broadly back to where it was prior to the pandemic, and the most recent reading of the Purchasing Managers Index suggested that supplier delivery times were speeding up, albeit slowly.

By midyear, price inflation should begin to ease somewhat and provide relief for builders.

NAHB: Over the past four months, lumber prices have nearly tripled, causing the price of an average new single-family home to increase by more than $18,600. This lumber price hike has also added nearly $7,300 to the market value of the average new multifamily home, which translates into households paying $67 a month more to rent a new apartment. NAHB calculated these average home price increases based on the softwood lumber that goes into the average new home, as captured in the Builder Practices Survey conducted by Home Innovation Research Labs.

The framing lumber prices at the peak were adding $30,000 to the price of a single-family house and $10,000 to a multifamily house.

The price increases were due to a shortage induced by the COVID pandemic. Mills curtailed production in anticipation of slower demand in April of 2020. While the demand held up better than predicted, the mills did not immediately ramp up production, which has led to the current pricing.

China is the largest producer of raw aluminum, and it has been shutting down aluminum manufacturing around the country since 2020 to cut greenhouse gas emissions. This is the primary reason for the price increases in aluminum.

2021, following five straight months of decreases. The gains should continue.

Meanwhile, there were 345,000 job openings in construction at the end of November, a 32% leap from a year earlier and the highest November total in the 21-year history of that series.

These data all point to a tough year for firms looking to add trades workers.

Dodge: We have reason to believe that this (skilled labor shortage) trend will continue. With a high need for labor and a small pool of laborers, many contractors believe it will be a big haul to find skilled workers, thus stretching the timeline to complete projects and meet schedule requirements.

NAHB: We estimate that we need more than 61,000 new hires every month in construction to keep up with the industry growth and the loss of workers to retirement. This will require an additional 2.2 million new hires for construction from 2022 to 2024. That’s a staggering number of workers that we need as an industry. For residential and nonresidential, the average job openings rate is around 300,000 or 400,000 positions each month.

We need more young people to come into the trades. We need to reach out to students, parents and teachers and change their perspectives on careers in construction.

ABC: What happened during the pandemic that was new was that so many baby boomers retired early— about 1.5 million retired earlier than they had anticipated for various reasons. Many of them were the best construction workers. They wanted to work with equipment; that was their dream. Not as many young people have construction as their dream, but these baby boomers often did.

Summing it up Despite the challenges of sourcing labor, materials and equipment, 2022 promises to offer more opportunities for growth. If you discount retail and office space construction, most other construction segments promise expansion through 2022.

The trick is going to be planning ahead and positioning your company to take advantage of the opportunities in the face of critical shortages.

Q: What are your projections for the labor market in 2022?

AGC: One sign of improving conditions in nonresidential construction is that the sector added jobs for each of the last four months of

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3/1/22 11:22 AM

MANUFACTURER PROFILE Advertisement

HOW CAN DIAGNOSTICS HELP YOU TO FIGHT THE SHORTAGE THAT THE INDUSTRY IS FACING?

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hen we were at CONEXPO in Las Vegas, back in March 2020, nobody could expect that COVID-19 would impact that much the welfare of the industry: electronic component shortages, inflation in parts and raw materials, difficulties to hire new professionals, etc. In short, a new tough scenario where everything has changed.

All this has affected also the market for new equipment.

Manufacturers are struggling to cover the high demand for equipment with delays and scarcity, making the value of the used equipment rise without precedents.

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However, where all seems to be challenging, there is also an opportunity not only for the sellers, but also for the endusers of the off-highway equipment. An opportunity to re-study and re-elaborate their maintenance policy.

There has never been a landscape in which the health of our equipment is mandatory not just for the ROI but also for keeping the company’s core business. For that reason, as every light-on counts like never before, it is mandatory to have a diagnostics tool that supports and controls the good shape of our assets. We don’t know how long it can take to replace that excavator that is knocking: diagnose, maintain and repair are our weapons against the shortage.

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MANUFACTURER PROFILE Advertisement

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KATO CL35 COMPACT TRACK LOADER

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ong-time favorite of rental stores and contractors alike, the newly redeveloped KATO CL35 has finally returned.

Interest in the machine has continued to be a topic of conversation, according to Bart DeHaven, KATO National Sales Manager. DeHaven said, “We hated to see it go away for a couple of years. A lot of our customers hated to see it go as well. Probably the most asked question on the ARA show floor is: ‘When is the CL35 coming back?’ We really took our time and made some of the most requested changes to the design. We’ve got a machine that we are really happy with, and we are excited to finally be able to bring it to market.”

Long one of the most popular machines in the KATO (formerly IHI) line, the CL35 is a powerhouse of a track loader, coming in at about 7,800 lbs. operating weight. The highly maneuverable and versatile machine sits on an 11.5’ x 5.5’ footprint, with 5.6 psi of ground pressure. The CL35’s continuous auxiliary hydraulics flow at a rate of 17 gpm.

The easily trailered machine and ease of maintenance makes the CL35 a great investment for a rental fleet. Additionally, simple and easy to use pilot controls and a comfortable operator space (available in open canopy or a fully enclosed cabin) makes the KATO CL35 often requested among contractors. The KATO CL35 is available now. For more information or to order your unit, contact KATO-Compact Excavator Sales.

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3/1/22 11:22 AM

STATE OF THE GREEN INDUSTRY //

By Jon Minnick

LAWN, LANDSCAPING INDUSTRY OUTLOOK POSITIVE FOR 2022

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eading into 2021, landscapers were optimistic. The industry worked hard in 2020 to become labeled “essential,” and things started to look promising.

Approaching the second half of 2021, it seemed like the economy and daily life would start to fall back into place, but then the variants started showing up— not just of COVID-19, but the Great Resignation and deeper supply chain issues—creating havoc throughout the end of the year.

In a recent reader survey, respondents were asked how they felt about the landscape industry overall going into 2022. “Positive on [the] demand for services,” says Andy Sykes, CLP, PCH, owner of Garrett Churchill in Willow Grove, Penn.

“Supply chain issues are across the board with every industry, so that has become a common expectation.

Labor continues to be a struggle with no end in sight.”

While labor is a continuing years’ long issue that will continue to be prevalent in 2022, lingering pandemic-related supply chain problems will widely affect everything from project materials to equipment availability. With individuals and companies ramping up work-from-home purchases for safety precautions and remote offices, they ate up any prepandemic

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warehouse surpluses and overwhelmed manufacturers as factories closed with no workers, leading to tools-ofthe-trade and supply shortages across many industries. Additionally, green professionals will need to deal with inflation costs in a way that allows them to keep their business going and growing but doesn’t alienate much of their clients in the process.

The good news is the pandemic is causing homeowners and commercial

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companies to rethink their yards and campuses. Homeowners see their outdoor space as a new sanctuary that gets them out of the house and are willing to use professionals for maintenance and major upgrades.

As commercial properties rethink the indoor office space, they’re also turning some attention on the outdoor campus to encourage staff to get away from their desks and safely interact.

To get a sense of what the industry

be.

com

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looks like as it mows into 2022, we reached out to experts in the industry to get their perspective of what is happening now.

What is your assessment of the landscaping industry heading into 2022?

Britt Wood, CEO, National Association of Landscape Professionals (NALP): Landscape and lawn care companies have weathered and, in most cases, thrived through the immense challenges of the last few years. We are optimistic that the demand for our industry’s services will continue to be strong for both commercial and residential services in 2022, but pressures from continuing supply chain issues and low unemployment will be challenging in the coming year. However, we continue to work to increase the number of seasonal workers allowed through the H-2B program and have reason to be optimistic that we will have a larger supplemental pool of H-2B visas this year and earlier in the season.

Kris Kiser, CEO and president, Outdoor Power Equipment Institute (OPEI): The industry is moving into 2022 with a real head of steam. Coming off of COVID-19, the industry saw an uptick as homeowners reconnected to the outdoors and recognized their living landscape as a safe space. That certainly translated into investments in their landscapes, hardscapes and pools.

We think that reconnection is real, and looking at market sales, we think it’s here to stay, but an increase in business, combined with ongoing supply chain impacts from the pandemic, mean contractors are facing challenges in availability of labor as well as reliable materials availability—including engine product, hardscape supplies and parts.

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Harold Redman, SVP, president of Turf & Consumer Products Group, Briggs & Stratton: The overall health of the landscape industry remains encouraging. I’m optimistic that the market for commercial cutting and landscaper services will continue to grow as residential homeowners and commercial businesses continue to see the value of the services provided.

I’m also optimistic that some of the challenges we’ve been experiencing for the past two years will start to correct and show improvement for the latter half of 2022 and beyond.

Joe Raboine, director of residential hardscapes, Belgard: Homeowners have shifted their thinking about outdoor living in general, prioritizing it to take advantage of health and well-being benefits of spending time outside. People are understanding these spaces are a respite from the craziness of the world, and if our profession can recognize this trend, we will create spaces that are great not just for entertaining, but that also foster nurturing and relaxation.

The supply chain issues are predicted to continue, but outdoor living professionals can stay ahead of the curve by communicating with clients ahead of time about expectations and product availability.

Brant Kukuk, compact equipment product manager, Ditch Witch: The landscape industry is in a positive place. Demand for new projects has been very strong for many landscapers over the past year, and that trend looks to continue into 2022. Manufacturers are seeing orders for machines continually grow, suggesting that landscapers are profitable, busy and looking to expand their operations.

As many landscapers deal with the ramifications of the labor shortage, they are increasingly looking for more

powerful, versatile machines that can support smaller crew sizes.

Sean McCormick, CEO and Jay Worth, marketing manager, SingleOps: Heading into 2022, the industry is still in a very strong position. Outside investment in the industry continues to climb, and consumers continue to demand our services. We’re optimistic that these trends will continue and that our industry will continue to strengthen its position in the economy at large.

There are apparent issues—supplychain snags, labor shortage, etc. The challenges don’t lie in those problems themselves. The main challenges for our industry will be our ability to approach these challenges with a truly creative mindset and thrive in the face of these issues. If we can’t come up with holistic solutions for staffing and supply, we’ll really be in dire straits.

Joe Haynes, president, Little Beaver: The last two years have shown record growth in the landscape market. As more people were stuck at home for extended periods of time, they tried to create their own escape in their home, making it a retreat in the time of lockdowns. Contractors and supplies quickly became backlogged, so we feel there will be plenty of work to carry over into 2022. Inflation is certainly going to be a challenge, as will getting the equipment and supplies needed to complete these projects, but we believe there is plenty of opportunity for anyone poised to act.

Stephen Chen, CEO, URSrobot: At its core, the landscape industry is a service business. We cater to the needs of people and nature, which is an ongoing need, with technology and knowledge.

We are very optimistic about the pivots that create opportunities. Clean energy, robotics and business models are changing to overcome challenges and

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STATE OF THE GREEN INDUSTRY ultimately strengthen our industry.

How has the pandemic affected the industry in 2021?

Belgard: Being indoors for most of 2020 and into 2021 has shifted the focus of outdoor living from entertaining to functionality—and brought a need for connecting with the outdoors and each other to the forefront. It’s important for industry professionals to understand how expectations and needs have changed so they can be ready to accommodate the customer. Notably, spending on home renovations increased by 15% this year according to Houzz.

NALP: Industry companies rebounded quickly from the initial uncertainty and restrictions of the pandemic.

2020 was a year of uncertainty, especially in the spring as companies figured out how to work through the pandemic, but by 2021, industry companies were in a groove, having adjusted their operations, and the demand for landscape and lawn care services was very high. High demand plus pandemic-related supply chain and workforce shortages created opportunities but also brought challenges for company owners to find a way to meet the demand with more limited resources.

URSrobot: The impact has been felt on supply chains, product shortages, labor shortages and churn. Perhaps some folks have left the industry and fewer are entering. This blend causes both pain and opportunity.

For some, the pandemic has resulted in a renewed vision of how to run the business, communicate and manage— fueled by courageous leadership and perseverance—and adoption of new technology.

Briggs & Stratton: There have been labor shortages on the contractor side that have limited the true growth potential of many landscape businesses. The industry was facing a worker shortage prior to the pandemic

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due to a variety of factors, including challenges getting enough H-2B visas.

The pandemic further limited the overall available labor and challenged contractors to find new ways to maintain and grow their businesses.

Because of the people shortages, many landscapers also began paying higher wages to their work crews to retain employees and to attract new labor.

Have the challenges of the pandemic created any business opportunities for landscape contractors?

OPEI: Landscapers have really been working with homeowners to tailor their outdoor spaces as a true extension of their home. Those spaces have needed to become classrooms, offices, play spaces, campgrounds—sometimes all at once—as “backyarding” become more and more common. Landscapers have helped homeowners customize those spaces.

SingleOps: Savvy landscapers did a few things very well and came out ahead over the last two years.

One, they positioned themselves to deliver an exceptional experience that was different from the traditional landscape sales process. Companies that embraced digital solutions for estimating and proposing work benefited greatly here.

The second thing smart companies have done was to ramp up their marketing efforts.

NALP: The pandemic initiated a new appreciation of people’s backyards and green spaces. As a result, there continues to be a boon in landscape upgrades, residential lawn care services and large-scale design and installation projects. On the commercial side, properties have added amenities for workers and upgraded landscapes to make facilities attractive for sale, all of which provided opportunities for upselling and add-on services for contractors.

If someone was considering working for the landscape industry, what advice would you give that person?

Briggs & Stratton: Focusing on a few key high-level questions often creates the right template for success. What is the opportunity with the target customers in a location or region?

What services could you provide that attract the greatest number of customers or provide the most attractive profits? What investment is required in equipment, resources and people? How do you differentiate your business and services from the competition? Do you have a solid financial model for launching your business plan along with the ability to measure your progress and success?

What variables within the business can you control or not control that may have a significant impact? Are there incentives available?

Belgard: Focus on understanding the needs and lifestyles of your customers.

Customers are the priority in this business, and you want to deliver on their expectations—so you can turn them into a repeat customer when they want to build additional projects. Also, continue investing in yourself through training programs.

NALP: The industry has such a wide variety of positions available that it is an excellent fit for people who love nature and the outdoors, have an entrepreneurial spirit, want to solve business or operational challenges, love design or love sales or finance. We continue to promote industry careers through our workforce development programs, our National Collegiate Landscape Competition and Career Fair and our marketing outreach.

People who are curious about careers in the industry should visit www. landscapeindustrycareers.org to learn about the career paths and peruse the job board to find positions available across the country.

www.ForConstructionPros.com/RENTAL

3/1/22 11:11 AM

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MANUFACTURER PROFILE Advertisement

EXTEND YOUR PROFITABILITY WITH THE NEW

TORO® DINGO® TX 1300 COMPACT UTILITY LOADER

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ooking for equipment that delivers fast return on investment? Check out the new Toro® Dingo® TX 1300. This model brings a whole new combination of power, reach and convenient control to the versatile Toro Dingo lineup. Key features include: • Compact power: With a 37 hp Yanmar® Tier IV diesel engine and 1,300 lbs. of rated operating capacity, the Dingo TX 1300 packs a powerful punch in a compact footprint.

• Extra reach: The exclusive INTELESCOPE® loader arm gives operators 26 inches of additional reach. Operators can also lift loads up and over the side of a dumpster or truck to maximize productivity, thanks to a telescoped hinge-pin height of 109 inches.

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• Multiple attachment options: The Dingo TX 1300 works with dozens of attachments, from buckets and forks to an auger or trencher head — so customers can tackle multiple jobs with a single machine.

From a wide range of potential applications to durability and ease of use, the Dingo TX 1300 is designed to deliver return on investment rental after rental.

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3/1/22 11:12 AM

SOCIAL FEATURE //

By Alexis Sheprak

Brandy Carmona

WOMEN RISE-ing to the Challenge

A

t the end of January, a group of women took San Antonio by storm. And with a presentation titled, “Elevate Your Performance,” it’s clear that these women are certainly elevating the rental industry.

The event was the American Rental Association’s (ARA) RISE Women in Rental Summit, a culmination of the ARA’s Women in Rental group, which aims to empower women and build their voice throughout rental. They focus on networking, mentorship and educational opportunities to increase volunteerism from women.

While those are the mission statements listed on the ARA website, there’s another focus of the group that I, as a fellow woman, value, and that is the acknowledgement and appreciation of the strong, smart, passionate women and female leaders that work (and lead) in this male-dominated industry.

So, what better way to appreciate this league of extraordinary women than to hold an event that offers connection, education, networking and fun to other women

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throughout the industry? Thus, the inaugural RISE Women in Rental Summit was held.

Though I’m no longer directly involved in the rental industry, some of my ties and connections have remained. And since the RISE Summit’s conclusion, my social feeds have been flooded with exuberance, overwhelmingly positive reviews and pictures that sparked quite a bit of envy deep in my gut. In one review, an attendee called it, “an empowering, educational, wonderful convention.” And every single woman—and I mean, every single woman—said that they can’t wait for the next one.

Because that’s the power of connection.

Of appreciation. Of community! But most importantly, the power of women.

Luckily for me, I was able to put my jealousy aside for a moment to get an inside scoop from an attendee and sponsor of the RISE Women in Rental Summit: Brandy Carmona, operations manager at Makinex.

Q: Brandy, tell me about your experience at the RISE Women in Rental Summit!

A: Overall, the RISE Women in Rental

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3/1/22 10:55 AM

Brandy Carmon

Summit exceeded my expectations on all levels. While it was a jam-packed schedule, I took advantage of every single minute I was there and attended every event that was offered.

The rental industry is massive and involves so many facets—there are manufacturers, equipment people, party people, insurance people, tech people, safety people and the list goes on. Bringing all these groups together is no easy task. However, at the end of the day, we all had two things in common: We were all there with intentions to strengthen ourselves while growing the rental industry AND we were all women!

Brandy Carmona

Q: What do you think is the impact of this event? Why is it important?

A: We all know 2020 impacted the nature of people’s jobs—what they do, how they do it, who they do it with and, for a lot of people, achieving more with less. During these periods of difficulty, the most valuable currencies are retention and motivation.

There are thousands of women who help make up the equipment and event rental community. Investing in these women and future women in rental should continue to be a priority. When you enhance employees’ knowledge,

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they become more engaged, which has a ripple effect into your company’s success.

Events like the RISE Women in Rental Summit offer the ultimate investment for all levels of personnel— from business owners to someone on the first day on the job. With this event, not only did we get ample networking opportunities to learn about different aspects of the industry, but everyone walked away with at LEAST one new skill and one new friend that can and will be used to further our growth into the rental industry.

Brandy Carmona

Q: What was your favorite part?

A: It’s hard to choose one single favorite moment. I will say that being able to network and share wins and losses with people from around the industry and covering all roles from CEO to mechanic helped me as a vendor. It helped me learn how I can do my job better. It opened doors for me personally and for Makinex to provide more value to our partners, ultimately growing the rental industry.

I also really enjoyed our educational session that motivated me to use my work as a vehicle to translate

my passion into action!

Q: How does this event—and others like it—benefit women in rental?

A: Providing these types of events and opportunities inevitably creates a mindset of lifelong learning, which will only translate into the continued growth of this industry. The goal of the Women in Rental (WIR) group is to provide networking, mentorship and educational opportunities. They knocked those goals out of the park.

I would 10/10 recommend any and all women within this industry get involved with WIR and attend the next summit (details coming soon!).

Brandy Carmona

You will gain knowledge that will help you in your professional journey; you will gain a national, and even international, perspective on current events within the rental industry; you will network with some amazing (i.e., bad***) women who’ve failed, prevailed and ultimately inspired; and you will absolutely leave with some new friends.

Currently, WIR is working on growing its mentor program, seeking both mentors and mentees. Please reach out to me so we can continue to grow this awesome group and include more women!

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T

akeuchi’s TB257FR hydraulic excavator, the newest excavator in the FR (Full Rotation) series, checks all of the boxes important to equipment rental dealers and their customers – it’s durable, versatile, powerful and easy to use. The machine’s unique side-to-side (STS) boom configuration sets it apart from the competition.

The TB257FR also offers simplified maintenance and excellent serviceability, unmatched visibility and easy maneuverability, helping operators maintain optimum performance and efficiency on any jobsite.

Strength + Durability With an operating weight of 12,675 lbs. (canopy model) and 12,930 lbs. (cab model), the TB257FR is designed to be a powerful, reliable jobsite workhorse. This machine features a one-piece, heavy-duty, steel-reinforced boom and has a standard long arm with a maximum dig depth of 12 feet 9.3 inches. The TB257FR is also equipped with an impressive bucket breakout force of 10,431 lbs. and a maximum arm digging force of 5,190 lbs. The machine’s forward-tilting cabin and wide-opening service hoods provide exceptional access for daily maintenance checks and service.

Versatility + Productivity Designed for maximum jobsite versatility, the machine’s STS boom configuration combined with its minimal tail swing allow for superior visibility and maneuverability when working in confined spaces, such as road and bridge construction or work within town. The TB257FR offers three working modes —Standard, ECO and High Altitude — allowing operators to choose the mode best suited for the job at hand. Additionally, this machine’s engine is Tier-4-Final compliant and provides 32 percent more engine output than its predecessor.

Takeuchi Fleet Management The TB257FR hydraulic excavator comes standard with Takeuchi Fleet Management (TFM) for two years at no additional cost. TFM provides valuable information about the machine’s health, run time and location, helping rental dealers control costs, minimize downtime, perform remote diagnostics and schedule maintenance.

Contact your local Takeuchi dealer today and learn more about the difference the TB257FR can make for you and your customers.

®

From World First to World Leader

706-693-3600 | www.takeuchi-us.com

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CONSTRUCTION FEATURE //

FINDING YOUR SKID STEER, COMPACT TRACK LOADER COMFORT ZONE Most newer models of compact track loaders and skid steers have suspended seats, adding at least a minimal buffer between the operator and the machine’s frame. Many manufacturers now offer air ride seats for even better protection for the operator, whether standard or as an option. Some brands take it a step further by adding full seat adjustability.

can help contractors choose the best configurations to maximize their investment.

CREATURE COMFORTS

ASV

C

omfort while operating equipment used to be more of an afterthought. That all seems to be changing.

Based on a recent survey from a top manufacturer, comfort is the No. 1 factor customers look at today when considering which configuration of a compact track loader or skid steer to purchase. And it doesn’t take much contemplation to see why. Manufacturers across the board continue to up the ante with modern comfort features, meaning operators have become accustomed to a certain level of luxury, especially in the last few years. For the construction business

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ASV

owner struggling with employee recruitment and retention, having equipment that is enjoyable to operate could make all the difference in maintaining a strong, reliable crew.

And let’s not forget productivity.

Operators who are comfortable experience less fatigue, allowing them to not only spend more hours in the cab in a day, but to be more alert while they work, increasing both productivity and safety.

Options for comfort features on modern compact track loaders and skid steers are plentiful.

Understanding the options available

Inside the cab is where comfort features are most obvious. Most newer models of compact track loaders and skid steers have suspended seats, adding at least a minimal buffer between the operator and the machine’s frame.

However, cab comfort doesn’t stop with the seat. The integration of a single-sided lap bar enhances comfort, as opposed to the more cumbersome overhead lap bar design. A singlesided bar frees up space around the operator’s waist and makes entry and exit easier.

Roominess in the cab is a primary feature for accommodating multiple operator body types and for comfort during long hours in the cab. While the maximum possible cab space will, by necessity, be limited by the size class of the machine itself, some manufacturers use strategic engineering to squeeze in every inch of operator space they can. The resulting cabs make even the smallest sit-in compact track

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loaders and skid steers far more comfortable than designs where cab roominess was less of a priority.

Other modern features that impact the overall experience can include Bluetooth radios, speaker quality and placement, USB charging ports and cellphone chargers.

Also, most newer models of compact track loaders and skid steers have suspended seats, adding a buffer between the operator and the frame.

VISIBILITY AND ERGONOMICS

Intuitive controls and high visibility make the operator more productive and less fatigued.

More visibility means operators don’t have to shift their bodies around as much to get a better view, whether it’s of the attachment or obstructions.

A clear visible area is one of the biggest factors of visibility. Some modern compact track loaders and skid steers have floor-to-ceiling visibility, including all-clear sides and frameless doors. These machines rely on high-strength polycarbonate glass and strategic configurations to pull off almost 360-degree visibility while retaining operator protection.

Other factors like intuitive switch placement, adjustable joystick controls and control panels make all the difference when repeating the same actions hundreds of times a day.

RIDE QUALITY

When looking at compact track loaders, think of undercarriages in two main categories: rigid and suspended.

Rigid-mounted undercarriages typically provide little to no

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 Comfort features such as Bluetooth radios, high speaker quality and strategic placement, USB charging ports and cellphone trays can make long days more comfortable and productive.

suspension, transferring the effect of bumps through the machine and to the operator.

Suspended undercarriages are becoming more popular, but not all suspended undercarriages are the same. One of the most advanced options a contractor could find is known as dual-level suspension, found on some mid- and large-frame modern compact track loaders. This style features the independent torsions between the undercarriage and the chassis and torsions allowing bogie wheels to flex with the track. This configuration keeps more track on the ground and more material in the bucket. Some designs maximize this advantage through the use of tracks with a polycord internal as opposed to steel for the best possible ground contact. The flexing track can morph around smaller obstacles like rocks, sticks or debris.

For skid steers, two major factors that affect ride quality are tire choice and wheelbase. Premium tires that provide an air tire feel with

flat-free functionality offer the most comfortable ride. A short wheelbase results in the machine’s tendency to buck and hop, tipping back and forth drastically on virtually any terrain with imperfections. A long wheelbase provides a flatter and more stable platform with less jarring.

BRINGING IT HOME

It can seem overwhelming for the contractor deciding which machine to bring home, but taking the time to evaluate which features make the most sense for a contractor’s business is undoubtedly worth the effort. Elevated productivity, improved employee recruitment and retention and the simple pleasure of looking forward to starting work in the morning are all benefits of navigating the options and investing in the right machine.

Buck Storlie Customer Education Training Manager Briggs & Stratton

MARCH 2022

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new

PRODUCTS

Bosch’s Bulldog SDS-Plus Floor Scraper Bosch Power Tools’ HS1418 Bosch Bulldog SDS-Plus Floor Scraper features a 5-inch blade providing more surface area to remove 25% more material. It was designed to be versatile for applications such as tile removal, thinset removal and laminate floor and glue removal.

• A durable steel blade provides a long life of thinset mortar and tile removal, along with a stable blade attachment that features a locking bolt and nut.

• 11-inch shank allows for more ergonomic scraping. forconstructionpros. com/21403818

OUTDOOR POWER EQUIPMENT PARTS, TOOLS & ACCESSORIES.

Marshalltown Vibratory Plate Compactor This vibratory plate compactor produces more than 3,800 pounds of centrifugal force with a frequency of 5,000 vpm.

• Travels at a speed up to 110 fpm.

• Single-piece plate and exciter.

• 23.7-inch-x-18.9-inch plate size.

• Honda GX160 engine and available 2-gallon water tank.

• Throttle lever located on the handle.

• Comes with a folding handle that locks in place and two lower handles for multiple lifting points. forconstructionpros. com/21366843

TM

It’s Not Just for Rocks!

America's #1 Supplier

SAVE TIME! SAVE MONEY! SAVE YOUR BACK!

THE POSSIBILITIES ARE ENDLESS!

Offer your rental customers a cost effective solution for their landscaping and construction projects with the RockVac. The self-powered machine will vacuum rocks, wood chips and shavings, sand, gravel, leaves, compost, mud, sludge, glass and debris. Fill a wheelbarrow in less than 3 minutes!

1.800.841.3989 • rotarycorp.com

©2022 Rotary Corporation. Rotary is a registered trademark of Rotary Corporation.

Available through servicing dealers & distributors.

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20421 - 15th Street SE Blomkest, MN 56216

800-328-8896

www.rockvac.com sales@christianson.com

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MWI Eco Primerite Self-priming Trash Pump

Stihl TSA 230 Battery-powered Cutquik Cut-Off Saw

The compact Eco Primerite self-priming trash pumps are municipally approved and priced for rental or purchase. The pumps include the 4-inch CT004 with flows up to 90 feet.

The battery-powered TSA 230 Cutquik cut-off machine delivers maneuverability and cutting performance in a lightweight, compact package.

• Easily pump slurries and brackish water with solids up to 3 inches.

• Rugged design with extreme hardness impeller and wear plates.

• Onboard water connection and control suppresses dust.

• Low-maintenance, brushless, commercial-grade high-torque electric motor.

• Uses the 36V lithium-ion battery system.

• Provides operators with up to 15 minutes of performance with no gradual drop in power.

• Quick recharge rate, especially with the optional Rapid Charger. forconstructionpros.com/22006008

• Can run dry indefinitely without damage to vital components.

• Tier 4 engines with optimized horsepower and low fuel consumption enable up to three days of operation prior to refueling.

• Skid or trailer mounting available with integrated lifting bail, tie-downs and fuel tank. forconstructionpros.com/21771714

CONTRACTOR’S HOSE & ASSEMBLIES • • • •

Air Hose Water Hose Suction Hose Discharge Hose

• • • •

Would you pump 13 gallons of water into your tools?

Hydraulic Hose Pressure Washer Hose Plaster/Grout Hose Sand Blast Hose

Neither would we.

World Class Solutions The Solution to Your Portable Compressor Moisture Problems 1311 MEACHAM RD., ITASCA, IL 60143 (847) 952-1800 (800) 852-1855 FAX (847) 952-0156 E-MAIL sales@abbottrubber.com WEBSITE www.abbottrubber.com

M E M B E R

1-800-287-1538

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MARCH 2022

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EYE ON RENTAL // B y

Dick Detmer

RENTAL INDUSTRY TREND OUTLOOK FOR 2022

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©BoonritP – stock.adobe.com

I

f the past couple of years have taught us anything, it’s that the rental industry is resilient. Here are my predictions for this year.

I think the rental industry is poised for growth in many areas of the country. Of course, some rental companies located in depressed market areas and those in areas that have too much competition may continue to have more modest gains. Also, those companies clinging to ineffective practices will inevitably yield below-average results.

My customers have experienced excellent gains in 2021 and are positioning their companies for continued growth and prosperity in 2022. Even so, most of them have serious concerns about the current direction of the country and doubt our nation’s political leadership’s ability to handle the economic, social and international challenges we face.

I am concerned about potential conflicts with increasingly hostile nations (such as Russia, China and to some extent North Korea). Even though we have had less-than-cordial relations with these countries for decades without drastic consequences, we may have conflicts in the future that could be surprisingly severe (with a corresponding negative effect on our economy). I hope I’m wrong, of course.

Perhaps surprisingly, I am positive and upbeat about our country’s future and our industry! Our country’s culture of success, the unique nature of the rental business, the tenacity and hard work of the people who own, operate and work for rental businesses have all combined to pull us through every time.

I also think the rental industry is poised for more competition.

You are not alone in your awareness of the strong need for rental equipment in our country and the gradual effect that growing housing, remodeling and infrastructure spending will have in our country. The growth and underlying financial strength of equipment rental companies will be noticed by your competitors. For some rental companies, this can be the cause of increased concern and worry, while those who wish to be acquired may view this as an opportunity to sell their companies for a higher premium.

I believe stronger-than-expected growth for progressive, independently owned and operated rental companies is likely. I also think there will be more independents who will be actively seeking to grow their rental companies through starting or acquiring another location in a nearby community (but

outside of their traditional territory).

And finally, another trend that I foresee for 2022 and beyond is the emphasis rental business owners will place on greater employee effectiveness and efficiency. The need in these areas has been great for some time but because of company “growing pains” and the vastly increased competition for quality help, I have seen increased demand for this type of training for employees and managers.

Relatively low interest rates, moderate inflation, continuing building and remodeling demand, the shortage of construction equipment available for purchase and increasing infrastructure spending all point to considerable potential for rental companies. Remember the importance of remaining positive and focused on moving forward.

Dick Detmer is a nationally recognized consultant, lecturer and writer with 40+ years of experience in the equipment rental industry. In 2018, he celebrated the 30th anniversary of his business, Detmer Consulting Inc., and his column in Rental. Dick can be contacted at dick@detmerconsulting.com, (309) 781-3451 or by visiting his website www.detmerconsulting.com.

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STAYED IN AMERICA®

STAN D UP

14” Compact Saw KL-14

8” Crack Chasing Saw C-10

7”Turbo EDGE Grinder TMC-7

Ease Your Knees. edcoinc.com • 800-638-3326• sales@edcoinc.com • edcoed.com

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BOBCAT.COM

DIG INTO A DEEPER REVENUE STREAM. REVOLUTIONIZE YOUR PROFITABILITY WITH R2-SERIES COMPACT EXCAVATORS FROM BOBCAT. Designed in a powerful but compact package, the E32 and E35 are capable of helping your clients conquer big challenges on an array of jobsites for a barrage of billable hours.

Bobcat Company is a member of the Doosan Group. Doosan is a global leader in construction, grounds maintenance and material handling equipment, power and water solutions, and engineering that has proudly served customers and communities for more than a century.

Bobcat ®, the Bobcat logo and the colors of the Bobcat machine are registered trademarks of Bobcat Company in the United States and various other countries. ©2022 Bobcat Company. All rights reserved. | 1502

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