Issue link: https://read.dmtmag.com/i/255289
44 | www.cedmag.com | Construction Equipment Distribution | February 2014 Regions The only thing it won't clean out is your wallet. Whether you're working in the oil & gas industry or on a construction site, the SweepMaster 400 is one mean cleaning machine that never backs down from a good mess. Visit www.laymor.com or call 800.323.0135. The question isn't HOW MUCH WILL IT COST? The question is HOW MUCH WILL IT PAY OFF? ("Three's a Charm: Infrastructure, Energy, Housing Put the Rev in Revenue" continued from page 43) More from the Southeast U.S. 2013's Heavy Fleet Replacement Trend Will Continue MARK ROMER AED Regional Director President, James River Equipment, Richmond, Va. The fourth quarter of '13 finished on a positive note and added to the gains made in the prior quarters making 2013 a good year overall. These gains were primarily driven by increased new equipment sales and a continued strong rental market. While used equipment sales remained at rela- tively high levels, sales flattened out in 2013 as the supply of later-model used equipment dried up. The reason for the growth in new equipment sales and rentals probably has more to do with pent-up demand and a need to replace aging equip- ment than an overabundance of work. During the downturn most contractors just stopped purchasing new equip- ment. As time went on their fleets got older, less productive, and more expensive to maintain until it reached the point that something had to be done. And with the shortage of late- model, low-hour, used equipment, this pent-up demand was relieved through the purchase of new equipment and rentals. Expect this trend to continue in 2014, especially as it relates to rentals. Virtually all dealers in the Southeast report substantially higher inventory levels driven by greater amounts of rental. It appears a growing number of contractors see rental as a cost- effective way of getting lower-hour, productive machines on their jobs, with the added benefit of keeping their balance sheets leaner. Other reasons that rentals may continue to play a larger role include: Contractors remain very cost conscience and this may be the most cost-effective way to get productive equipment on their jobs with no long- term commitment.