Equipment Inventories are Improving. Now What?

By Dennis Howard | RDO Equipment Co. How inventories affect your bottom line and how to mitigate the reduction of asset valuation. If you have been trying to get ahold of me during the past couple of months, it most likely has been difficult. I’ve been traveling to growing regions, like Texas or Southwest states, where RDO Equipment Co. team members work diligently to keep contractors up and running. At several locations, rental fleet inventories are back to pre-pandemic levels, and in most other places, they are growing. The last time we saw this phenomenon was early in 2020, before the worldwide pandemic caused supply chain shortages. So many wonder, “What does this mean for my business as I go into year-end planning and look to bid on jobs in the new year?” To help contractors plan, I previously shared steps to safeguard their business during an unstable market. While these steps still hold, it’s also an excellent time to take a minute to re-evaluate the rental and used equipment market, its recovery since the COVID-19 squeeze, and how contractors can update their strategy for rental or used equipment to complete jobs on time and budget in the coming months. First, let’s consider the rental and used equipment availability and pricing. Rental and Used Inventories Recover According to the Rouse Services Market Trend Report, equipment volume is up an impressive 25% versus the prior year. (Rouse Services has been delivering timely equipment metrics with accuracy and reliability for decades for those in the construction industry. I recommend checking out some of their market trend reports if you have the time.) The factory floor increase in churning out machines inspired dealers to replenish their rental inventories to meet the immediate needs of contractors. READ FULL ARTICLE >>