4.) Equipment Availability
As both the economy and the waste and recycling industry continue to evolve and grow, the demand for refuse fleets is creating immense pressure and strong demand on the manufacturers of both refuse bodies and chassis. This growing demand in many cases has pushed truck delivery lead times in the marketplace to months, limiting the ability to have access to new equipment in a time frame that either supports growth or maintains a fleet replacement strategy. Renting can keep your strategy and plans intact as a suitable option to help mitigate wait time issues tied to new equipment deliveries.
5.) Improved Fleet Management
Typical management and ownership of a truck fleet within the waste industry over a 10-year period with a 10-1 spare ratio has become the representative standard. This standard strategy comes with some consistent challenges of increases in ongoing maintenance costs, downtime and spikes in capital needs as refuse fleet age within the public and private sector. Refuse and recycling trucks that have been moved from the active fleet to "spares" are usually transitioned for reasons related to age and reliability.
Spare trucks, which have been retired due to age or reliability, present a very costly expense to most organizations, including licensing, higher than typical maintenance costs, taxes and many other factors, all while, in most cases, failing to provide a backup plan as a true fleet replacement when needed most. Renting can be a part of the answer to this, helping reduce the spare vehicle ratio size and ensuring uptime and customer service expectations are met when the need arises. Do you find that your new trucks are over-used to make up for the challenges of an aging fleet? Double-timing use of newer trucks can be common, but causes long-term maintenance challenges, which can drive the fleet to age at a quicker pace, which may lead to additional capital needs earlier than expected.
The use of rental trucks can help relieve this bottleneck and even be used to allow all trucks to more regularly receive their proper preventive maintenance, keeping the fleet up and running for longer. Regardless of a hauler's size, in either the private or public sector, the question of whether rental or ownership is a better strategy toward creating a well-balanced fleet, can be determined by examining the above five key elements - elements which truly drive the rental industry. Questions to ask include: Why rent? What drives your decision? What benefits do you see from adding rentals? A well-balanced fleet typically considers all costs, both direct and indirect. All of our key customers have adopted this strategy, and it has allowed them to run more profitable businesses. As we continue our pursuit to help provide the waste industry with new and modern fleet options, every hauler, both public and private, should take the time to consider the option of renting to build their business and profitability. RPN
Jaksa Panic is director of Sales, Big Truck Rental Canada.
This article was originally published in the October 2018 edition of Recycling Product News, Volume 26, Number 7.