Rental Update: 2023 Q3 in Review

Compact track loaders saw the biggest increase in average daily rental rates of 6.87%.

Average daily rental rates for 70% of the most popular equipment types increased, with only three showing declines. Known for its versatility, especially in rainy conditions, the compact track loader saw the biggest increase in average daily rental rates of 6.87%. Same with crawler mounted compact excavators, which saw a daily increase from $404 in Q2 to $429 in Q3. Q3 gains were also seen in daily rates for skid steer loaders, electric self-propelled scissor lifts, crawler mounted hydraulic excavators, I.C. pneumatic tire lift trucks, and with just a smidge increase in daily rental rates is the telescoping boom rough terrain lift trucks. Average weekly rates increased for Q3 across all equipment types except standard crawler dozers (which declined overall -5.85%), 4-wd articulated wheel loaders, and single drum vibratory compactors.

Has the construction sector’s recent uptick translated to the used equipment rental market? Indeed it has. Recent data from Associated Builders and Contractors shows a promising 0.4% uptick in national nonresidential construction spending, hinting at a brighter fall for the construction arena. But the real silver lining comes from the rental sector. Remember when the American Rental Association projected a mere 4.7% year-over-year growth earlier this year? They’ve reevaluated, and the latest figures predict a robust 7.6% surge, culminating in a staggering $60.4 billion in construction and tool rental revenue for 2023. In fact, Sunbelt Rentals just readjusted their earnings for the year, projecting a 16% increase in revenue.

With construction expenditure on the rise, Original Equipment Manufacturers (OEMs) clearing their backlog, and infrastructure projects in full swing, we anticipate rental rates to not only stabilize but also face surging demand.