Construction Equipment Rentals: What to Rent for Profit

The rental industry continues to benefit from a widely adopted business model that places a high value on outsourcing. Global business spending on outsourcing topped $720 billion in 2023 and appears to be en route to setting another high watermark by year’s end.

Construction equipment rentals have rebounded from the pandemic, and Americans are expected to spend a record $76 billion in 2024.

Despite the tremendous return on investment opportunities, some organizations appear reluctant to dive into the rental of construction equipment. Entrepreneurs and business leaders who rest on their general equipment rental laurels could find their competitors taking the lion’s share of their regional market.

Is the Equipment Rental Business Profitable?

Yes, companies that diversify their portfolio enjoy repeat business, customer loyalty, and increase their bottom line.

Rental businesses specializing in niche events, such as outdoor concerts, typically add items to meet customer needs. These may include adding sound equipment, temporary staging, point-of-sale technologies, and even security equipment devices such as wands.

The primary reason niche outfits quickly branch out is driven by the fact that their customer base relies on wide-reaching equipment. As outsourcing statistics indicate, the cost of owning, maintaining, and repairing an inventory of products proves more expensive than short-term rentals. Savvy business leaders typically run the numbers on owning versus renting and consider the latter as the cost of doing business.

From a decision-maker’s planning perspective, construction equipment rentals are akin to acquiring permits or carrying worker’s compensation insurance. However, the critical difference is that contractors can choose between scalable renting costs and paying out of pocket for equipment storage and maintenance.

Revenue-Generating Ideas for Rental Companies

As rental business professionals know, a fee can be assigned to any asset. Turning a profit on any inventory investment only proves problematic if it sits idle.

Given steady construction industry growth, the continuing roll-out of $1.2 trillion in federal infrastructure spending, and outsourcing trends, adding construction equipment rentals is a no-brainer.

These are top equipment rental options that add value to an operation and attract a broader customer base.

Truck Rental Fleets

Big box home-building materials chains offer truck rental solutions for transporting items. The truck rental is designed to generate an additional revenue stream. It also creates a pathway for homeowners and construction outfits to transport assets from their equipment rental wing.

These outlets often cater to DIYers and construction professionals who handle side jobs. Adding a fee-based transport asset to their portfolio encourages consumers and businesses by creating a one-stop-shop operation. There’s no reason equipment rental businesses can’t capitalize on the same value-added concept.

Rent Portable Bathroom Products

It seems counterintuitive to offer construction equipment and not rent portable bathrooms at the same time. In too many areas, business owners assume their clients will contact an organization specializing in portable bathroom rentals or sanitation companies with a defined portable toilet wing.

Truth be told, almost every new build, road construction, and land development project requires a place for workers to relieve themselves, and owners are not wedded to a specific renter. 

The profits associated with renting portable bathrooms are slipping through the fingers of many business owners. Adding an inventory of mobile toilets will pique the interest of contractors and event planners alike.

Portable Handwashing Stations

It’s no secret the general public has developed a heightened sense of hygiene since the health emergency. We are seeing more hand sanitizer dispensers in local libraries, schools, and municipal buildings. This also holds true for job sites.

Workers used to merely run their hands under water from a hose before taking lunch. Now, they want to be more thorough and defined handwashing stations are essential.

While renting out portable hand-cleansing products will likely attract the attention of contractors, these assets are also sought-after in other niches. Weddings, concerts, festivals, community gatherings, and anything held outdoors can benefit from these stations. Having personal hygiene options on-site also conveys thoughtfulness and professionalism.

Pressure Washer Rental Equipment

Pressure washer rental equipment remains in high demand for both residential and commercial use.

Homeowners gravitate to the idea that they can rent lightweight power-washing equipment that fits in the trunk of most vehicles. More powerful wheeled apparatus can be transported in the back of a pickup truck.

In the construction trades, painters, deck refinishers, and gutter service professionals rent them on a need basis. Even outfits that have their own pressure washers work with rental companies when demand for their services exceeds in-house assets.

Renting Portable Woodchippers

Woodchipper rentals present another residential and commercial crossover opportunity. Small landscaping companies like to remain agile by minimizing storage needs and curbing investments.

Woodchippers do not necessarily come into play on a regular basis, making them a one-off rental darling. On the other hand, plenty of landscapes take on ground-clearing projects, making the asset worthwhile for equipment rental operations.

Homeowners also sometimes need to cut back bushes and small trees. If equipment rental businesses onboard products that can be attached to the standard-sized trailer hitches found on SUVs and pickup trucks, they expand the potential client base.

Construction Site Fencing

Of all the crossover construction equipment rentals, temporary fencing may be the most sought-after.

Builders are required by federal regulations to erect temporary fencing to prevent children or passersby from entering the potentially hazardous work space.

Contractors also invest in mesh fence screens that attach to sections of chain-link fences, increasing security, privacy, and workplace safety. Jobsite fence rentals with screens also provide contractors with a branding opportunity.

In terms of being a popular crossover rental asset, outdoor festivals, weddings, concerts, and community-organized events need to establish temporary barriers. They help direct foot traffic, provide a space for clear messaging, and ensure security personnel can more easily channel event-goers in order to perform security checks. 

Establishing a temporary fence rental wing proves a lucrative investment that delivers a wider range of services to existing customers and brings in new business.

Concrete Mixer Rental

There are a few different ways to look at renting out a concrete mixer. Rental businesses can tailor their assets to contractors who handle sizable projects. Doing this would likely entail onboarding a large commercial concrete mixer. However, this pathway tends to limit the number of uses it would generate annually.

Another way to provide these construction equipment rentals is to invest in a mid-sized unit that serves contractors, jack-of-all-trades service providers, and DIYers. The right mobile mixer generally handles modest pours that run below the minimum cubic yards offered by concrete companies.

By providing a product that handles small to mid-sized walkways and other projects in a cost-effective fashion, rental businesses can position themselves as the go-to resource.

Increase Rental Equipment Profits

Companies that expand their inventory of construction equipment rentals deliver cost-effective outsourcing solutions. Having a wide array of products positions a local or regional business as a reliable resource able to fulfill multiple needs.

The construction sector and rental industries are both growing, and now is the time to expand products and services. Items such as woodchippers, portable bathrooms, and pressure washers can be leveraged by multiple audiences.

Unlike other items, temporary fencing is a regulatory and security necessity companies cannot do without.

The CEO of Joe's Septic Contractors, Mason Boudreaux, decided to partner with SONCO and diversify his business. He used to rent only porta potties, and now he runs a successful temporary fence rental business, with customers coming to him specifically for the fences.

To learn more about Mason’s journey, check out the video below: