Navigating the Construction Equipment Economy: Key Insights from EquipmentWatch

A big dirty dump truck or loarder with a heap of dirt ready to dump as an example of the Construction Equipment Economy in 2024

The 2024 State of the Construction Equipment Economy report by EquipmentWatch lays out important insights for heavy equipment dealers. Here’s a quick rundown on what’s in the report, what’s happening in the industry, and what it means for equipment dealers.

Ownership vs. Renting: What’s the Smart Move?

  • Preference for Ownership: Most firms (73.5%) prefer owning their equipment. Owning gives them long-term stability and control.
  • Rental Usage: Despite this, a whopping 74.5% of firms still rented equipment last year. Renting helps cover short-term needs without the hassle of ownership.

Dollars and Sense: Making Financial Decisions

  • Cost Efficiency: Almost half of firms rent when it’s cheaper than buying. Rental costs can be anywhere from 10% to over 50% of project expenses.
  • Buying Trends: New equipment is mostly bought from dealers (61.2%), while auctions (26.2%) are also a popular choice.

Why Rent? Quick Answers for Quick Jobs

  • Short-Term Use: 75.9% of firms rent equipment they don’t need often. Renting saves money and storage space.
  • Immediate Needs: 40.5% of firms rent when they need equipment right away and can’t wait for a purchase.

Which Equipment is Rented the Most?

  • High Demand Rentals: Cranes (60.8%), lift equipment (47.5%), and compactors (47.5%) top the rental list.
  • Other Rentals: Drilling equipment (42.6%) and graders (40.6%) also see significant rental action.

Market Conditions: Keeping an Eye on the Numbers

  • Resale and Auction Trends: Resale values are up slightly, while auction values have jumped significantly over two years.
  • Economic Forecast: Growth is expected to slow down in 2024 (0.9%) and 2025 (1%), so keeping costs in check is more important than ever.

Legislation and Regulations: What’s Changing?

  • Federal Boosts: The Infrastructure Investment and Jobs Act is pouring money into the industry, which means more demand for your equipment.
  • State Rules: New laws in New York and California are pushing for more sustainable practices. This might change what kind of equipment is in demand.

Stay Ahead of the Game

For heavy equipment dealers and operators, the name of the game is flexibility and cost-efficiency. Balancing between owning and renting, staying updated on market trends, and adapting to new regulations will help you stay competitive.

Want to dominate the market? Check out ConAg Marketing’s great resources for strategies that will keep your business on top. Don’t like to read stuff? Our monthly Machine Heads podcast is perfect for on-the-go insights.

You can always contact us to schedule a consultation and learn how we can customer-tailor marketing for your business to meet your demand.

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