The equipment hire industry is crucial to the broader construction industry. It offers construction companies a cost-effective way to deploy equipment for their construction projects, reducing equipment, overhead, and operations costs.
With this increased significance, companies in the equipment hire industry are also refreshing their processes to ensure they remain competitive and offer great customer service.
Moreover, emerging trends like increased digitalisation, the advent of new technologies, and changing customer preferences are also forcing hire companies to change the way they operate.
So in this post, we will explore emerging trends in the equipment hire industry that companies should pay close attention to in the new year.
Digitalisation is set to reach new heights
While many equipment hire companies have adopted digital platforms in recent years, the rate of adoption is expected to be much higher in 2024, with many companies looking to adopt comprehensive hire software solutions and mobile applications to help customers find and explore hire equipment options, reserve their preferred items, and arrange for delivery or pick-up.
Moreover, it’s expected that more companies will adopt digital hire contracts in 2024 to streamline operations, eliminate the paper trail, and cut overhead costs. These results are expected to lead to significant growth in the digitalisation services market, with an expected growth rate of 5% according to recent reports.
This digital transformation promises to improve access to information, for both customers and internal staff, including for field engineers, drivers, workshop workers, and technicians.
Sustainability will be a core focus
A significant trend noticed in industry events like CONEXPO-CON/AGG is the increased focus on sustainability and the demand for green technologies from customers and hire equipment companies.
As global awareness of climate change increases, many equipment manufacturers are investing heavily to develop eco-friendly equipment options. This increased focus on sustainability by manufacturers and customers means that equipment hire companies will start adding eco-friendly hire options to their fleets in 2024.
Moreover, advanced hire software with tracking and geo-navigation capabilities will become more popular as hire equipment companies can plan shorter routes for equipment transport, which will lead to less fuel consumption and emissions.
Telematics will be adopted to optimise equipment lifecycle and customer services
With equipment hire companies looking to increase the longevity of the hire equipment and reduce maintenance costs, telematics systems will become more prevalent in the hire industry. In fact, according to Telematics Wire Market Research, companies that have already integrated telematics systems into their processes have reported a 14% decrease in maintenance costs.
This reduction in maintenance costs is enabled by remotely monitoring hire equipment in real-time to collect data on usage, performance, and location and using this data to generate intelligent insights that help hire companies make informed decisions about equipment maintenance.
In addition, many leading hire software solutions will start integrating telematics capabilities into their solutions to enable hire companies to analyse the state of their equipment and plan predictive maintenance to ensure longevity.
Equipment-as-as-Service (EaaS) will transform the hire industry
The traditional hire model requires customers to pay for the entirety of the equipment, regardless of how much the equipment is used and what the equipment is used for. This is a rigid model that makes hiring equipment for specific one-off projects or on an irregular basis quite expensive. The EaaS model transforms this traditional model and will give flexibility to customers.
Essentially, the model allows customers to only pay for the usage or outcomes of the equipment, instead of the equipment itself. This means that renters don’t need to pay large upfront fees to hire equipment, allowing them to be agile and lean with their financial operations.
In addition to the flexibility it offers to renters, the EaaS model also enables equipment hire companies to easily shape their operations, according to customer requirements.
AI will become an enabler for decision-makers
AI and ML are revolutionising industries across all verticals, and we can expect them to become more prevalent in the hire industry in 2024. They are most useful to hire companies when making decisions. By accessing and analysing historical data, hire companies can forecast demand more efficiently, optimise hire rates, and identify the need for and schedule preventive maintenance.
These technological advancements can also be leveraged to optimise inventory management, streamline logistics, and enhance operational efficiency.
2024 is set to be a revolutionary year for the equipment hire industry
The new year is poised to make equipment hire companies significant players in the construction industry due to the increased demand for hire equipment and the advent of technologies to meet this demand.
To capitalise on this opportunity, hire companies should carefully monitor the above-mentioned trends and take steps to update their processes to keep up with them.