The equipment rental industry has long served as a barometer for broader construction and economic activity. The October/November 2016 issue of Rental magazine captured a pivotal moment for rental professionals, featuring the annual Editor’s Choice Awards, a profile of a rental business thriving in the unique coastal market of Seaside, Oregon, and an examination of how mobile technology was beginning to reshape rental operations. For contractors and rental business owners alike, understanding the themes and trends highlighted in this issue offers valuable perspective on how the rental industry evolves to meet changing market demands. This article explores the key insights from that issue and what they mean for Equipment Rental Profiles Building a Stronger Rental Business.
Editor’s Choice Awards 2016: Recognizing Innovation in Rental Equipment
The 2016 Editor’s Choice Awards featured in the October/November issue highlighted the most innovative equipment and products introduced to the rental market that year. These awards, selected by the editorial team of Rental magazine, recognized manufacturers and suppliers who demonstrated exceptional design, durability, and user-focused innovation in their product offerings.
Categories of Recognition
The Editor’s Choice Awards covered a broad spectrum of equipment categories relevant to rental fleets. The winning products were evaluated on criteria including operational efficiency, ease of maintenance, safety features, and overall value to rental operations.
- Construction Equipment — Heavy machinery and earthmoving equipment designed for contractor rentals
- General Tool — Portable tools and job site essentials for daily rental applications
- Lifting Equipment — Aerial work platforms, forklifts, and material handling solutions
- Power Generation — Generators, compressors, and power distribution equipment
- Pump Solutions — Water pumps for dewatering, construction site drainage, and industrial applications
- Compact Equipment — Skid-steer loaders, mini excavators, and compact utility machines
What the Awards Revealed About Industry Direction
The 2016 award winners shared several common characteristics that signaled where the rental equipment market was heading. Manufacturers were increasingly focusing on telematics integration, allowing rental companies to track equipment location, usage hours, and maintenance needs remotely. Fuel efficiency and emissions compliance remained top priorities as environmental regulations continued to tighten across North America.
Another notable trend was the emphasis on operator comfort and safety. Ergonomic controls, improved visibility from the operator station, and enhanced fall-protection systems were recurring features among winning entries. These design choices reflected a broader industry understanding that equipment that is safer and more comfortable to operate also tends to rent more frequently and retain higher utilization rates.
Impact on Rental Fleet Planning
For rental business owners, the Editor’s Choice Awards served as a practical purchasing guide. The recognized products represented equipment that had been vetted by industry professionals and was likely to perform well in rental fleets. Many rental operators used the awards to inform their capital expenditure decisions for the upcoming year.
As noted in the March 2021 Rental Industry Report Equipment Rental Market, maintaining a modern and well-maintained fleet is essential for rental businesses aiming to compete effectively. The 2016 awards highlighted products that could help rental companies differentiate their offerings and attract contractor customers seeking reliable, well-maintained equipment.
Rental Business Profile: Thriving in the Unique Market of Seaside, Oregon
One of the most compelling features in the October/November 2016 issue was a profile of a rental business operating in Seaside, Oregon. This coastal community, situated on the northern Oregon coast, presents a distinctive set of challenges and opportunities for rental operators that differ significantly from inland markets.
Understanding the Coastal Rental Market
Seaside and similar coastal tourist destinations have rental markets that are shaped by seasonal fluctuations, a mix of residential and tourism-driven demand, and the unique environmental conditions of the Pacific coastline. Rental businesses in these markets must adapt their inventory and service strategies to meet the needs of both local contractors and property owners maintaining vacation homes and commercial properties.
- Seasonal demand cycles — Peak tourist seasons drive renovation and maintenance work in the spring and summer months
- Saltwater exposure — Equipment must be selected and maintained to withstand corrosion from coastal air
- Diverse customer base — Rental companies serve contractors, homeowners, municipal workers, and event organizers
- Limited local competition — Smaller markets often mean less direct competition but also a smaller total addressable customer pool
Keys to Success in a Niche Market
The rental business profiled in the issue demonstrated several strategies that proved effective in the Seaside market. Customer service was paramount, with the business investing in knowledgeable staff who could help customers select the right equipment for their specific projects. Inventory selection was carefully calibrated to match the types of work most common in the area, from landscaping and property maintenance to small-scale construction and renovation.
The business also invested in preventive maintenance programs designed to extend equipment life despite the harsh coastal environment. Regular washing, corrosion-resistant coatings, and careful storage practices helped the company maximize the useful life of its rental fleet in conditions that would accelerate wear on unprotected equipment.
Lessons for Rental Operators in Any Market
While the Seaside market is unique, the strategies employed by this rental business offer lessons applicable to rental operations everywhere. Understanding your local customer base, tailoring inventory to match demand patterns, and investing in equipment care are universal principles of successful rental management.
The Ara Rental Industry Forecast 2022 What Equipment Rental later reinforced the importance of localized market knowledge in driving rental business success. Companies that deeply understand their regional markets are better positioned to anticipate customer needs and maintain competitive advantage.
Mobile Technology’s Transformative Impact on Rental Operations
The October/November 2016 issue dedicated significant coverage to how mobile technology was beginning to reshape the equipment rental industry. At the time, smartphones and tablets were becoming ubiquitous, and rental software providers were racing to develop mobile solutions that could streamline operations from the rental counter to the job site.
Key Areas of Technological Change
Mobile technology was impacting rental operations across several critical functions. The issue explored how rental companies were adopting mobile solutions to improve efficiency and customer service.
The Shift Toward Cloud-Based Rental Software
A central theme of the mobile technology coverage was the shift from on-premise software systems to cloud-based rental management platforms. Cloud software offered several advantages for rental businesses of all sizes, including lower upfront costs, automatic updates, and the ability to access business data from any internet-connected device.
The issue highlighted that rental software providers were investing heavily in mobile-first interfaces designed specifically for the rental industry’s workflow. These platforms integrated rental contracts, inventory management, billing, and customer relationship management into unified systems accessible from mobile devices.
Benefits Realized by Early Adopters
Rental companies that had already adopted mobile technology reported several tangible benefits by 2016. Contract processing times were reduced from hours to minutes. Inventory accuracy improved as barcode scanning and RFID tracking replaced manual counts. Customer satisfaction increased as real-time availability information reduced the frustration of arriving at a rental yard only to find the desired equipment was unavailable.
The Point of Rental Conference 2022 Rental Software Insights showed how far the industry had come by the early 2020s, with rental software evolving to include AI-powered recommendations, predictive maintenance scheduling, and integrated e-commerce capabilities.
Economic Forecasts and the Business of Equipment Rental
The October/November 2016 issue also provided economic forecasts and business management insights designed to help rental professionals navigate the financial aspects of their operations. Understanding economic trends and implementing sound financial practices are essential components of running a profitable rental business.
Key Financial Metrics for Rental Operations
Successful rental businesses track several critical financial metrics that the issue highlighted as essential for informed decision-making.
| Metric | Definition | Target Range |
|---|---|---|
| Utilization Rate | Percentage of available equipment hours actually rented | 65-75% |
| Fleet Age | Average age of equipment in the rental fleet | 3-5 years |
| Revenue per Unit | Annual rental revenue generated per equipment item | Varies by equipment type |
| Maintenance Cost Ratio | Annual maintenance costs as a percentage of equipment value | 8-12% |
| Return on Assets | Net income divided by total fleet asset value | 10-15% |
| Customer Retention Rate | Percentage of customers who rent again within 12 months | 70%+ |
Managing Personnel and Back Office Operations
Beyond financial metrics, the issue emphasized the importance of personnel management and back office efficiency in running a profitable rental business. As noted in the magazine’s description, Rental provides “customer-centric insight into service and back office issues surrounding personnel and finance, all with the goal of helping professionals run a more profitable business.”
Staff Training and Development
Investing in employee knowledge was identified as a key differentiator. Well-trained counter staff and service technicians reduce errors, improve customer satisfaction, and extend equipment life through proper maintenance. The issue recommended ongoing training programs covering equipment operation, safety procedures, and customer service skills.
Streamlining Back Office Processes
Back office efficiency was another area of focus. The issue highlighted how rental businesses were using software to automate billing, manage accounts receivable, and generate financial reports that provided visibility into business performance. Automation of routine administrative tasks freed up staff to focus on customer service and business development.
Planning for Market Cycles
The economic forecasts in the issue reminded rental professionals that the construction industry moves in cycles. The equipment rental market in 2016 was still recovering from the downturn of the late 2000s, and the issue offered guidance on managing through both growth periods and downturns.
Key recommendations for cycle-proofing a rental business included maintaining conservative debt levels, diversifying the customer base across multiple construction sectors, keeping a reserve of well-maintained used equipment that could be sold to generate cash during slow periods, and investing in preventive maintenance to maximize equipment life and resale value.
The October/November 2016 issue of Rental magazine captured a moment of transition for the equipment rental industry. Between the Editor’s Choice Awards recognizing product innovation, the profile of a coastal rental business navigating unique market conditions, the exploration of mobile technology’s growing influence on rental operations, and the financial and economic insights for business management, the issue provided a comprehensive look at the state of the rental industry. For rental professionals and the contractors who depend on them, the lessons from this issue remain relevant as the industry continues to evolve toward greater technological integration, deeper customer focus, and more sophisticated business practices.