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2021 Equipment Rentals Up 3%, But Hang On for Big Growth Next Year

Rental equipment revenue will grow a moderate 3% over 2020 through the remainder of 2021 – but hang on in 2022.

The American Rental Association says it now expects the combined construction/industrial and general tool rental revenue to grow by almost 10% next year, reaching a record $52.4 billion. That number even tops the rental industry’s 2019 height of $50.9 billion.

The news is even brighter for the construction equipment segment, which ARA forecasts will grow 12.3% in 2022, reaching $38.7 billion. ARA says it did not include the impact of the proposed infrastructure bill now making a tortuous path through Congress  in its calculations.


American Rental AssociationJohn McClelland, ARA vice president for government affairs and chief economist, says most of the benefits of increased infrastructure spending will not occur next year since it takes time for projects to be approved and funding obligated. IHS Markit, which produces the ARA forecast, will incorporate the infrastructure spending “once we have a clear indication of final passage” of the bill, McClelland says.

IHS is monitoring the market to see to what degree inflation which has not been an issue for more than a decade is inflected in rental-rate increases.

ARA also issues a five-year projection with each forecast. It now projects rental revenues to grow 5.5% in 2023, 2.5% in 2024, and 3.3% in 2025 to reach $58.6 billion.

ARA says rental companies slashed construction equipment and general tool capital expenditures by 44.4% in 2020, dropping equipment investment to $7.64 billion. Now on the rebound, ARA predicts equipment investment will grow by 36.2% this year to $10.4 billion, followed by another 36% increase to $14.2 billion in 2022. Additionally, this investment will grow by 10.9% in 2023, 2.3% in 2024 and 3.8% in 2025 to total more than $16.6 billion, according to ARA.

Did you miss our previous article…
https://www.tortowheaton.com/?p=568

Cat 578 Forest Machine Boosts Operator Comfort, Productivity

Caterpillar upgraded its 568 Forest Machine with new features to boost productivity, comfort and safety and reduce maintenance time and cost.

With a 347-horsepower Cat 9.3B diesel engine, the 568’s electrohydraulic control system puts out 10% more swing torque and 14% more drawbar pull, which makes grabbing and moving heavy logs faster. Smart mode controls match engine output and hydraulic power to the load resulting in 5% lower fuel consumption.

The reinforced certified forestry cab structure and 1.25-inch-thick polycarbonate windshield protects you from logs and limbs that may break loose while loading. The interior of the heated and cooled cab has been increased 25%, which allows most operators to stand up without hitting their head. Cat also narrowed the cab pillars and added larger panoramic windows and a flat hood to give you 50% more visibility. For cab access, you have the option of side or rear entry. A rearview camera comes standard, and three cab riser heights are available: 22, 48 and 72 inches. For easy transport, the cab tilts with hydraulic assist.

The new electrohydraulic control system eliminates the need for a pilot filter and pilot oil. Fuel-filter change intervals have been pushed out to 1,000 hours, double the life of the previous model. And the hydraulic-oil return filter offers a 3,000-hour service life, 50% longer than the previous forest machine. The on-demand cooling fan works only when needed, and the fan reversal can be programmed to come on at different intervals to clean out debris.

If you’ve grown to like push-button start on your truck, you’ll appreciate the same option on the revamped 568. Starting can also be accomplished with Bluetooth key fob or a unique operator ID function. With the operator ID, you can program the machine to remember individual settings and attachment preferences using the 10-inch-high resolution touchscreen.

If you’ve had trouble locating attachments in the past, Cat’s PL161 Attachment Locator can help you find where you last put your work tool, even if it’s overgrown with debris or vegetation.

Given that many forestry operations are in extreme cold or hot weather, the Cat 568 boasts a cold-start capability down to minus-32 degrees Fahrenheit and in hot weather up to 126 degrees. And should your contract call for cutting trees high up in the mountains, the 568 will operate without derating at altitudes up to 9,842 feet above sea level.

Cat 568 Quick Specs>

Engine: 347 hp>Operating weight, forestry:  104,280 lbs.>Operating weight, log loader:  105,380 lbs.Max reach, forestry: 38 ft. 4-in.Max reach, log loader: 2 ft. 5 in.Drawbar pull: 84,978 lb.-ft.Swing torque: 120,222 lb.-ft.

Did you miss our previous article…
https://www.tortowheaton.com/?p=565