AUSrentalupdate
This issue, RouseServices gives
an update on the USmarket
towards the end of last year.
51
ROUSEMETRICS
IRNMARCH 2015
US-basedRouseServices is a leader in
constructionequipment appraisals, used
equipment sales support and fleetmanagement
analytics, specialising in the rental sector. For
more informationgo towww.rouseservices.com
Definitions:
Rouse Forced Liquidation
Value Index
Theaverageauction (Forced
LiquidationValue) recoveries
expressedasapercentageof
Original Equipment Cost.
Forced LiquidationValue (FLV)
Theestimatedgrossamount
expressed in termsofmoney
that equipmentwill typically
realiseat aproperly conducted
publicauctionwhen the seller is
compelled to sell asof a specific
datewithinanapproximatelyone
monthperiod.
Rouse Rate Index
Achieved rental rates relative
toJanuary2011 (whenRouse
Analytics started tracking rate
data) for abasket of commonly
rented items.
Physical Utilisation
Thepercentageof fleet cost
which ison-rent duringagiven
period. Aunit is “on-rent” if it
isat a jobsiteearning rental
revenue.
Benchmarking update
Rouse Services has added five new rental company participants to its Rental
Metrics Benchmark service – it now provides rate and utilisation benchmarking
services to 52 equipment rental companies across theUS.
Rouse launched itsbenchmarkreportingservice inJanuary2011 inco-operation
with the American Rental Association (ARA), with initial participants United
Rentals, Hertz Equipment Rental Corporation, H&E Equipment Services, NES
Rentals, andNeff Corp.
Over the last three years, it said it added 47 rental companies includingAhern
Rentals, Sunstate Equipment and BlueLine Rental, as well as 27 Caterpillar
dealers and 17 independent rental companies andheavy equipment dealers.
The service collects invoice-level transaction data and nightly fleet snapshots
fromparticipating rental companies and reports industrybenchmarks for rental
rates, physical utilisation, dollarutilisation, fleet age, andother keyperformance
metrics at a local market level.
December USRVI drops
The December Rouse Value Index (RVI) for used equipment prices decreased to
46.6, down 0.6% fromNovember values. This is 7.6% higher than the prior peak
period of 43.3 in April 2007, and 57.0% higher than prior trough period of 29.7
in June 2009.
With the exception of wheeled loaders, all of the fourteen major categories
that make up the Rouse Value Index have seen increased values over the last
24 months. The aerial work platform, scissor lifts and excavators categories
have seen respective 20% and 16% increases in values over the same period,
while wheeled loaders have decreased 2%. Overall, the Rouse Value Index has
increased8% sinceDecember 2012.
US auction results down
December auction sales of rental and construction equipment tracked by Rouse
averaged 1.1% lower thanRouseNovember FLV values.
Rouse recorded 5080 units that sold at 41 separate auction sales conducted
acrossNorthAmerica.
The units represented a combined FLV (as of 30
th
November) of US$138million
(€122 million) and generated US$136 million (€120 million) of gross auction
proceeds.
October RouseRate Index increases
DuringOctober 2014, achieved rental rates asmeasuredby theRouseRate Index
increased 0.5% on average for the rental companies participating in the Rouse
Analytics Rental Metrics Benchmark Service.
Rates were up 3.9% relative toOctober 2013 and up 26.4% relative to January
2011, whenRouse first started tracking this data.
Physical utilisation, which is seasonal, has remained steady sinceJanuary2011,
thoughon larger fleet sizes today.
ROUSEVALUE INDEX (RVI)
AUCTIONVOLUMEANDRECOVERYRATE
ROUSERATE INDEX: JAN2011-OCT2014
OLV (%OFCOST)
VOLUME ($MILLIONS)
VOLUME ($MILLIONS)
SALEPRICE/FLV
RECOVERYRATE
50.0
45.0
40.0
35.0
30.0
25.0
1.30
1.25
1.20
1.15
1.10
1.05
1.00
0.95
200
150
100
50
0
110%
105%
100%
95%
90%
2006
2006
2007
43.3
29.7
43.6
46.6
1.26
2007
2008
2008
2009
2009
2010
2010
2011
2011
2012
2012
2013
2014
Jan
2011
Nov
2011
Sept
2012
July
2013
May
2014
Dec
2013
Oct
2014
June
2011
Apr
2012
Feb
2013
