What is the Best Strategy for Fleet Growth?

Kenneth Tysinger

Director Independent Equipment Dealers Association Contractors should consider a mix of new and used equipment, as well as leasing or renting equipment that is used less frequently. Buying used machinery is always a great option for growing your equipment fleet. A qualified dealer can help locate a machine that will work for a contractor’s needs and fall within their budget. Purchasing new equipment should be considered when a contractor is looking to add or replace high-frequency usage machines. With the aggressive financing options currently being offered, new equipment can work for these types of purchases. If a contractor needs a specific machine for a project but isn’t sure if they will use it frequently afterward, leasing may make the most sense. Leasing combines a smaller monthly payment with a shorter commitment term. Once a lease is up, contractors can purchase the machine or turn it back in to the dealer. Finally, renting is a good option for short-term needs. Rentals are typically considered direct job costs and may give contractors the ability to write off the cost on a monthly basis. Contractors should consult a tax adviser to see if this is applicable in their states. A trustworthy equipment dealer can navigate a contractor through the options and help to choose which one is best.

Jenny Shiner

Marketing Communications Manager GPS Insight When creating a 2018 strategy for fleet growth, construction businesses should first look to their operations to understand issues that could inhibit bottom-line growth. The most common challenge our customers face revolves around the inefficiencies they experience throughout their fleets. These issues range from inefficient fuel economy and high maintenance costs to inefficient daily workflows that lead to the completion of fewer jobs. Once areas for improvement are identified, businesses can build a strategy that includes new processes and technology like GPS tracking, maintenance software, fuel card software and other applications that will positively impact the bottom line, which will ultimately aid their plans for fleet growth. The key takeaway is that there is not just one metric for businesses to focus on to gain the means for growth—it is about solving the specific business challenges each company faces and choosing the right technologies that can help to solve them.

Mark Wasilko

Vice President of Heavy Equipment Industrial Markets Decisiv As construction companies consider adding to their fleets, the maintenance and repair of those assets becomes increasingly complex. Managing warranties, parts and technician service in an effort to minimize equipment downtime requires moving toward a more automated approach. With the proper technology in place, companies can better predict maintenance and service events more efficiently, manage mobile repairs and improve technician productivity. The result is less equipment downtime and more consistent and cost-effective operations. Finding, or even approaching, the holy grail of zero unplanned downtime promises to be a huge differentiator for construction companies, allowing for new models of business with key suppliers that include offering guaranteed uptime and “power by the hour” pricing. An integrated service relationship management (SRM) approach between companies and suppliers to fleet maintenance can help to better manage critical assets, reduce costs and enable companies to lead to a more profitable 2018.