Is Your Rental Business Ready to Scale? How Asset Tracking Can Drive Growth

Infrastructure demand coupled with falling interest rates is creating new opportunities within today’s heavy equipment rental market as projects previously on hold transition to production. As an example, the American Rental Association projected an 8.9% increase in construction and general tool rental revenue this year, totaling $78.7 billion.

By enabling organizations to avoid high upfront and maintenance costs, rental companies are in a prime position to provide the flexibility the market needs to scale accordingly. It begs the question – how prepared are you to scale internal operations to anticipate a growing customer base?

Now is the time to increase the level of service efficiency you provide to core customers. At a minimum, your asset tracking approach should prevent theft, enable quick recovery, and provide better dispatching. However, there’s so much more to the ROI of asset tracking through best-in-class software that tracks every phase of asset utilization.

From the home yard to the inspection site, through to the transfer location and job site, Geoforce has you covered. Improving internal processes such as billing verification maximizes deployments and helps you provide exceptional customer service. Maintenance proactivity reduces idle time and rental disruptions that can interrupt your operations as well as your customer’s.

The ROI of Asset Tracking

The ability toupdate clients in real time while significantly reducing response times characterizes a leading rental company by putting the focus on consistent communication and continuous improvement. With Geoforce, the promise of smart utilization is realized, delivering significant savings by year 1 and beyond.

Let’s look at the ROI results for a hypothetical rental company with a fleet of 100 heavy equipment assets costing an average of $20k/asset with a rental fee of $200/day over the course of one year. By deploying several key software features, we’ll see how Company A saves over $100,000/year.

In this example, the estimated ROI is conservative considering that a typical full-sized excavator ranging between 15 tons and 20 tons has a daily rental rate of $450 to $3,500. Forklifts and skid steer loaders can reach rates of $400 to $600 per day.

Given that device lifetime of Geoforce trackers average 8-10 years you could be looking at approximately $982,800 over 9 years. When hardware and software are properly integrated across the entire utilization cycle of the device, optimal ROI can be achieved. Book a demo today!