Issue link: http://read.dmtmag.com/i/536658
>> PERSPECTIVE LORI TOBIAS T he topic of Tier 4 regulations tends to inspire a fair amount of criticism: equipment acqui- sition and maintenance costs are higher, but rental rates aren't keeping up the increases – and, to add insult to perceived injury, some believe the environmental benefits are minimal. But when three industry leaders took part in a recent webinar hosted by Rental Equipment Register to talk about the implementation of Tier 4 regula- tions, the news was not only not all bad, but in fact much of it is pretty good. e key to succeeding under the Tier 4 regulations is understanding the technology that comes with it, says Joe Mastanduno, account manager in rental marketing with the John Deere Construction and Forestry Division. "Don't be afraid of the technology, learn about it," he said. "When I joined John Deere in 2007 and we started talking about Tier 4 four to five years ahead of time, the key thing was to keep repeating the message oen and very early so that when the machines did hit the market both our customers and dealers were ready for the technology. e Tier 4 people have been talking about it. It hasn't been tough. It's just like learning another piece of technology. We've done a lot of education. at would be the key message today." ese days, when he asks custom- ers how Tier 4 is working for them, Mastanduno said the subject oen changes to a different topic. "It's really proven technology," he said. "When you look at the value of Tier 4 it has affected a lot of product updates. e customers are seeing a lot of benefits. at's part of the reason they call me the vice-president of the optimist club of Tier 4." Some of those benefits include an increase in the volume of equipment being rented, said Frank Manfredi, president of Manfredi & Associates Inc., a consultant to the heavy equip- ment industry for more than 35 years. "It appears as if the amount that is rented versus sold is increasing," he said. For example, 85 percent of aerial work platforms are going into rental Reflections on Rental and the Tier 4 Revolution Joe Mastunduno at John Deere, industry consultant and analyst Frank Manfredi, and Southeastern Equipment Regional Manager Heath Watton discuss the ups, the downs, and the question marks that today's emissions technology has placed upon the industry. 40 | www.cedmag.com | Construction Equipment Distribution | June 2015 It appears to me it is a really good time to be in the equipment rental business. The Growth of the Rental of Construction Equipment Year Estimate Number Locations Estimated Rent Revenue per location Estimated CE Rentals Industry Rent Revenue % Change From Previous 2015 14,000 $2,900 $40,600 11% 2014 14,640 $2,500 $36,600 12% 2013 14,100 $2,313 $32,615 16% 2012 13,975 $2,019 $28,224 12% 2011 13,830 $1,822 $25,200 17% 2010 14,208 $1,518 $21,571 -15% 2009 14,648 $1,733 $25,377 -30% 2008 15,750 $2,302 $36,253 -4% 2007 15,865 $2,372 $37,636 8% 2006 15,708 $2,218 $34,848 20% 2005 15,400 $1,886 $29,040 9% 2004 14,000 $1,895 $26,530 11% 2003 14,005 $1,723 $23,927 1% 2002 13,250 $1,790 $23,717 -4% 2001 13,500 $1,837 $24,800 0% 2000 13,932 $1,780 $24,784 3% Source: Manfredi & Associates, Inc.