Experts Weigh in on Rental Industry Compact Equipment Advancements

Rental Compact Equipment Advancements
After discontinuing the T650 CTL in 2019, Bobcat has reversed course last year.
Bobcat Co.

At the category level, compact equipment has been one of the stalwart backbones of equipment rental. In general, compact equipment is being used for many more things today than ever before. With pros challenged by the contracted labor market, these machines seem to be filling the gap.

The core of compact rental equipment includes loaders (track and skid steer) and excavators.

“They are probably the highest utilized pieces of equipment that go out the door,” says Mike Fitzgerald, marketing manager at Bobcat. It’s worth noting that some include tractor-loader backhoes and rough-terrain forklifts in the category.

“Something that I’ve been hearing specifically around that product category [compact equipment] is that it seems to be flourishing,” adds Kent Somerville, head of national rental accounts at Volvo—specifically pertaining to compact excavators. “[Volvo] is continuing to invest in compact excavator developments. I see continued opportunity in this segment as we focus more on it from a corporate perspective, but also as we continue to develop electric and refresh our diesel product offerings.”

“The largest contributor to the volumes in the compact excavator business is probably the 3.5-ton range—that has always been the leader in compact excavators,” he says.

Exemplifying this, Volvo has recently redone its 3.5-ton offering with the EC37.

Compact equipment improvements have also addressed the regulations and improved fuel efficiency for the tiered engines. For example, Bobcat has been able to lengthen oil change intervals which reduces maintenance costs and provides better return on investment for rental companies. “Those all are changes happening as we move forward and look toward trying to reduce the total cost of ownership for a rental operation and making sure the machine meets customer needs,” says Fitzgerald.

Asking Questions

The impetus is on the rental company to understand what the customer is trying to do and then be knowledgeable with what equipment they have to meet that need. It’s not always the machine they are asking for that will do the best job. Outside of knowing your own fleet:

  • Understand what the contractor is doing.
  • Understand what the job they’re trying to perform.
  • Understand what the size of the application.
  • Understand the jobsite and requirements. 

Rental Compact Equipment AdvancementsWith the E40, operators get performance and maneuverability with practical features such as a minimal tail swing with less than 2 in. of overhang and a standard long arm. The E40 delivers an over-the-blade lift capacity and over-the-side lift capacity.Bobcat Co.

“Compact track loaders continue to grow as well as the mini excavators,” says Jim Zak, director of managed accounts at CASE (CNH Industrial). “Labor continues to be an issue across the industry—if you have less skilled labor, you need smarter machines or machines have to make up for that skill level. It’s got to be product enhancements to improve the usability, the versatility of the machine.”

In general, recent advancements include:

  • Increased engine efficiency for added horsepower
  • More performance with more hydraulic flow
  • More attachments
  • Changes to the design to cool both the engines and hydraulics

“[These] types of changes have always been in the development process,” says Fitzgerald. “But in recent years, its been more and more important to match the performance of the machine to the needs of the customers.”

Manufacturers have been adapting to the regulations coming in with tiered engine levels. With that, machines have become more efficient by burning cleaner and utilizing fuel better. The same “efficient” mentality is also being applied into the hydraulic and hydrostatic systems. The TL100 features a rated operating capacity of 1,000 lbs. (35 percent of tipping load) and is compatible with several attachments.The TL100 features a rated operating capacity of 1,000 lbs. (35 percent of tipping load) and is compatible with several attachments.CASE Construction Equipment | CNH Industrial

On how far these machines have come, “It’s been a progression,” says Fitzgerald. “When I started at Bobcat our medium sized and most popular machine had 36 horsepower. Today those machines have over 70 horsepower. This allows customers to do more work without significantly increasing their machine size”

Comfort

Traditionally, rental equipment was not necessarily evaluated for comfort—someone needs to do a job, get it done, and a machine to help accomplish it. However, with the labor shortage and keeping good operators plaguing the pros, comfort elements like cabin enclosures, heat and air conditioning, and electronic controls are becoming more standard with new compact equipment models. These can help pro customers in two ways: 1) keeping operators on the team, and 2) increasing productivity.

Bobcat has developed operator comfort and control features to match this need. “We have put a couple different control systems and patterns that they can choose from depending on whether it’s a loader or excavator to match the operator’s preference,” says Fitzgerald.

Some of the latest updates from CASE include added an optional factory-designed, built and installed enclosed cab with operator-friendly features like AC, heat, Bluetooth radio, and noise and dust suppression that let operators work in all kinds of conditions. Along with these comfort features comes convenience with an automotive-style cab and customizable LCD screen for the CX50D mini excavator.

Rental Compact Equipment AdvancementsThe 3,390-lb. MT100 mini track loader is powered by a 24.8-hp Tier 4 diesel engine and has a rated operating capacity of 1,000 lbs.Bobcat Co.

Attachments

Along with increased efficiencies and creature comforts, the number of available attachments for compact equipment provides options galore. When he started at Bobcat, Fitzgerald explains, the company had 7 attachment categories. Now, they have 70 or more.

For rental, Fitzgerald says that the more specialized, expensive attachments along with the lower utilized attachments are popular. Case in point, compare an asphalt or concrete contractor that may own a skid steer loader with a planer attachment to a general contractor that would rent a planer only for specific jobs. These situations are becoming more popular. He’s also noticing attachments like forestry cutting equipment, and drum/disc mulchers for land clearing as a high rental type.

Rental Compact Equipment AdvancementsThe Volvo ECR40 excavator gives operators an accessible cab. It provides visibility thanks to slim corner pillars and wide, flat glass areas. The armrest and controls float with the seat, and the door opening and travel pedals are larger than in previous models.Volvo Construction Equipment

Electric Compact Equipment

The initial push by states like the regulations of California lead the way on electrification. However, “the success around electric is going to depend on the improvements on the product, development of pricing strategies, the ability of the infrastructure to support it, the availability of dollars, and incentive to take your business down that route as a rental,” says Somerville.Rental Compact Equipment AdvancementsCASE's SL12TR Telescopic Articulated Loader was designed for lifting operations on construction sites and working in tight spaces. This machine features a lifting height of 108 in., allowing individuals to manage hard-to-reach loads at safe distances.CASE Construction Equipment | CNH Industrial

There are applications in areas that will see more movement than others, but for the most part, it’s been more short-term work. Utility contractors like those by federal, local, and municipal governments are looking to utilize them—especially for indoor demolition, remodeling, or quiet neighborhoods.

Somerville and Fitzgerald draw parallels to the auto industry where there’s initial hype and then cooling. “The journey around electric, I think, is sorting itself out,” says Sommerville. “We view electric as the desired place to be from a corporate position. There’s more focus on the compact business than ever.”

“There are applications where [electric] will be perfect,” says Zak. “It depends on the application, the environment, and the jobsite conditions.” Keep the conversation going with your customer, these factors will help choose what machine will work best.

What can be done to take further advantage? Optimize the potential on your investment. Track your missed rentals. Consider the array of attachments sitting in your fleet. Attachments make the machine that much more versatile, increasing machine utilization without a significant cost. “Build a value proposition around the quality of the product and the brand,” suggests Somerville. In other words, promote the fit, finish, and operator comfort.