Ara Rental Market Metrics Pdf
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Ara Rental Market Metrics Pdf
The American Rental Association (ARA) last week introduced its ARA Rental Market Metrics™ white paper to industry analysts through a special webcast on Oct.
The ARA Rental Market Metrics establish a recognized industry standard [] Questions? Contact sales or our award-winning support team 1-800-882-6705. Rental Software. The American Rental Association (ARA) last week introduced its ARA Rental Market Metrics™ white paper to industry analysts through a special webcast on Oct.
— The American Rental Association has published ARA Rental Market Metrics, a whitepaper outlining industry standards for calculating and reporting equipment rental company performance metrics. ARA Rental Market Metrics was written to provide equipment rental companies a consistent way of calculating and reporting critical performance measures.
It develops industry standards for the definition of a day, original equipment cost, and for the calculation of time utilization of equipment, financial utilization, fleet age and percentage change in period-over-period rental rates. “Standardizing the methods equipment rental companies use to calculate performance measures will advance individual businesses and industry performance in a consistent manner,” said Christine Wehrman, ARA CEO.
“ARA undertook this landmark initiative to further the growth and professionalism of the industry.” “Several key performance metrics for equipment rental businesses are unique to the equipment rental industry. Most of these metrics are associated with fleet efficiency and utilization,” said John McClelland, Ph.D., ARA's vice president for government affairs, project leader and co-author of the white paper with Michael Graboski, Ph.D., an ARA consultant. “Consistency in reporting metrics was missing in our industry and made it virtually impossible for rental businesses to assess their performance relative to their peers.” ARA convened an industry-wide advisory group to lend counsel and advice during the development of the ARA Rental Market Metrics whitepaper. Dan Kaplan of Daniel Kaplan Associates, Morristown, N.J., a rental expert, leading industry consultant, and former CEO of., provided the initial inspiration to ARA for this project and contributed to the effort. Moline, Ill.-based ARA is an international trade association for owners of equipment rental businesses and the manufacturers and suppliers of construction/industrial, general tool and party/event rental equipment.
Editor’s note: This edited article is reprinted by permission from the November issue of the quarterly newsletter Rental Insight, developed and written by Daniel Kaplan, a well-known Morristown, N.J.-based analyst on rental trends in the construction equipment industry. The newsletter is produced in collaboration with Yengst Associates, a marketing consultancy firm specializing in industry data and market research for construction equipment markets. The price per electronic copy in PDF form is $500 per year for four quarterly issues. For more information or to subscribe to Rental Insight, call 203-762-8096, fax 203-762-8330 or e-mail. The major rental companies in the U.S. All trade or have debt that trades publicly. Quarterly they report their earnings.
Analysts study the results and make comparisons with comments and recommendations that effect bond prices or stock prices. The truth is that these analyses are flawed because the basis on how each rental company reports its metrics varies greatly.
What the equipment rental industry needs is consistent methodology including recommended standards and formulas on the metrics. Listed below are areas that all rental companies use to measure and manage their businesses and the metrics analysts evaluate.
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• Time utilization. This is a time measurement of equipment by category that is calculated on a monthly basis.