FOR IMMEDIATE RELEASE
MOLINE, ILL.: The American Rental Association (ARA) announces the publication of ARA Rental Market Metrics™, a white paper outlining industry standards for calculating and reporting equipment rental company performance metrics.
ARA Rental Market Metrics™ provides 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 (OEC), and for the calculation of time (physical) utilization of equipment, financial (dollar) utilization, fleet age and percentage change in period-over-period rental rates.
“The development of rental performance metrics marks a new chapter in the equipment rental industry. Standardizing the methods equipment rental companies use to calculate performance measures will advance individual businesses and industry performance in a consistent manner. ARA undertook this landmark initiative to further the growth and professionalism of the industry,” says Christine Wehrman, ARA’s CEO.
“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. 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, “says 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.
ARA convened an industry-wide advisory group to lend counsel and advice during the development of the ARA Rental Market Metrics™ whitepaper. Dan Kaplan, a rental expert from Daniel Kaplan Associates, Morristown, N.J., provided the initial inspiration to ARA for this project and contributed to the effort.
“The industry took this initiative seriously and worked collaboratively in the formation of these metrics. I believe adopting the use of ARA Rental Market Metrics™ will be of great benefit to the equipment rental industry,” says Wehrman.
About ARA: The American Rental Association, Moline, Ill., 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. ARA members, which include more than 7,500 rental businesses and nearly 900 manufacturers and suppliers, are located in every U.S. state, every Canadian province and more than 30 countries worldwide. Founded in 1955, ARA is the source for information, advocacy, risk management, business development tools, education and training, networking and marketplace opportunities for the rental equipment industry throughout the world. For more information, visit ARArental.org.
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