Following this trend, U.S. equipment companies are expected to invest more than 30% of their revenue on new equipment in the next five years. In order to best take advantage of these trends, managers have become more aware of their increasing need for business management software for rental businesses.
HSO provides an agile, robust enterprise solution specifically designed for your equipment organization- whether you are focusing on rental, manufacturing, service, or any other unique combination. In such a volatile industry, it is key for equipment owners to be able to quickly adapt to market changes. It is paramount to keep an eye on costs, and through a healthy dose of system reminders and refined processes, owners are be able to increase their margins on a per equipment basis. The industry is already capital intensive, where the average annual revenue per worker in the US is about $430,000, so any decisions made regarding equipment investments must be careful planned and executed.
The equipment rental industry grew four times faster than the US gross domestic product in 2014 and is expected to see a 10.5 percent increase this year for a total of $39.6 billion by the end of 2015, as stated in the report from the American Rental Association. Part of this is due to increased activity in highly correlated industries, including construction for example, in specific commercial and residential construction. With all of this growth, equipment owners are turning to software to help them scale their large operations.
“The U.S. economy slowed more than expected in the first half of the year, but equipment rental demand has remained strong and rental growth will still handily outperform the overall economy,” said Scott Hazelton, managing director of IHS Global Insight, a research firm that conducted the study. “Looking forward, commercial construction and housing starts will contribute to growth in the construction and industrial and general tool segments.”
As rental companies grow along with the industry, large scale companies will need sophisticated IT platforms in order to continue growth and maintain efficiency at scale. Enterprise resource planning or ERP solutions for equipment rental businesses, can help growing organizations manage the rapid growth of the market and become more agile to better adapt to change, as future market volatility is always around the corner. ERP can help smooth out trends that are constantly fluctuating, ultimately making them easier to internalize. With role specific data insights, reporting and KPI’s, rental companies are able to gain efficiency and agility with a complete view of their business.
With HSO’s industry specific solutions for equipment rental businesses on the Microsoft Dynamics AX platform, users get out-of-the box role-centers and security, along with the familiar Microsoft interface and deep integration with other Microsoft technologies to get up and running quickly and reduce training for accelerated user adoption.
To learn more, contact HSO today.