This issue of the LICA Legislative Landscape includes the third of shared perspectives from some of LICA industry partners on their markets and challenges facing their sector. This week we hear from John McClelland, Senior Vice President, American Rental Association (ARA).
How would you describe the heavy equipment rental market year to date?
The market for heavy equipment rentals has been challenged this year by the Coronavirus pandemic. Early in the pandemic some areas shut down construction and many ARA members saw their revenues decline as much as 70% to 80%. Since then construction activities have returned to a more normal situation and revenues are moving back to more normal levels. However, we are still forecasting an overall decline in rental revenues for the year. I would also mention that ARA members in the event segment of the industry are particularly hard hit. These members are not seeing normal business activities returning and may not see recovery until mid-2021.
What are some of the biggest challenges rental customers of equipment are facing?
Customers of rental equipment companies have been challenged by the shut down of construction projects in the early part of the pandemic. The biggest concern we have now is the processing of work permits for projects large and small. Many county and state permitting agency personnel are working remotely and that is causing some delays in permitting.
From ARA’s perspective, what does Congress need to do before adjourning for the November elections?
I mentioned the issues our event members are facing with extreme revenue losses. We have been working with Members of Congress to get more financial aid to businesses that face a long runway to recovery. We believe an expansion of the Paycheck Protection Program (PPP) allowing these businesses to receive a second draw of PPP funds needs to pass Congress and be signed by the President as soon as possible. If this does not occur many small businesses in the equipment and event rental industry and many other industries will not survive the pandemic.
How would you describe the heavy equipment rental market year to date?
The market for heavy equipment rentals has been challenged this year by the Coronavirus pandemic. Early in the pandemic some areas shut down construction and many ARA members saw their revenues decline as much as 70% to 80%. Since then construction activities have returned to a more normal situation and revenues are moving back to more normal levels. However, we are still forecasting an overall decline in rental revenues for the year. I would also mention that ARA members in the event segment of the industry are particularly hard hit. These members are not seeing normal business activities returning and may not see recovery until mid-2021.
What are some of the biggest challenges rental customers of equipment are facing?
Customers of rental equipment companies have been challenged by the shut down of construction projects in the early part of the pandemic. The biggest concern we have now is the processing of work permits for projects large and small. Many county and state permitting agency personnel are working remotely and that is causing some delays in permitting.
From ARA’s perspective, what does Congress need to do before adjourning for the November elections?
I mentioned the issues our event members are facing with extreme revenue losses. We have been working with Members of Congress to get more financial aid to businesses that face a long runway to recovery. We believe an expansion of the Paycheck Protection Program (PPP) allowing these businesses to receive a second draw of PPP funds needs to pass Congress and be signed by the President as soon as possible. If this does not occur many small businesses in the equipment and event rental industry and many other industries will not survive the pandemic.