The power of rental

By Lindsay Gale20 March 2008

Cat Rental stores are increasingly realising the profits that can be made when they can provide a Cat excavator carrying a Cat hammer to their rental customers. Scott Graham senior projects engineer at Cat Impact Products said: “Take the typical example of an H70 hammer on a midsized backnoe in a rental store. The acquisition cost of the hammer represents 12% but the hammer generates 40% of the rental income. Feedback from across Europe and the USA confirms that Cat hammers are the product with the best return on investment in the whole fleet.”

With a low capital cost and these high rates of return, they are undoubtedly attractive pieces of equipment for rental operations. In Cat's case, the company has developed solid &Check-In, Check-Out' procedures for rental hammers to ensure that they are correctly maintained and customer abuse is minimised, But it is important that the relevant and appropriate financial reporting procedures are also put in place, ensuring maintenance costs and rental incomes are correctly allocated, allowing accurate utilisation and rental income to be recorded.

Latest News
MEC leak containment patents approved
Granted patents for MEC’s LCS for slab scissors cover the US, Europe and Canada 
Time acquires France Elévateur
France Elévateur (FE Group) incorporates FE Benelux, FE Deutschland and Spanish producer Movex
Time Manufacturing names new Europe president
Kim Bach Jensen, previously managing director of the group’s Versalift International division, is promoted to the roles