The question of renting vs. owning is one that’s been tossed around and dissected for years. As the economy ebbs and flows, the benefits for renting an industrial boiler can be advantageous at one time and far less appealing in the blink of an eye based on market climate turmoil. Over the course of this past year, end-users in the oil and gas industries are increasingly turning to short-term rental contracts to better align with their market volatility. It happened almost overnight.
According to IBISWorld, the industrial rental business is expected to top out at $33 billion in 2016, with a strong 5.1% growth year over year. The American Rental Association forecasts the business to be close to $50 billion by 2019.
There are many drivers behind the need for equipment manufacturers to have a well-defined rental program. Many companies face unpredictable work backlogs and projected business activity levels which have resulted in a general unwillingness to commit to equipment purchases. Others are looking for immediate answers to ramp up to meet demand and can’t afford to wait out the production lead times for new equipment. Federal mandates like Boiler MACT and the Clean Power Plan are increasingly driving the requirement for short-term rental equipment.
At Victory Energy, the industrial boiler rental business unit is uniquely aligned to enhance the value of each and every customer relationship. Customers have a wide variety of needs for rental boilers – working through plant shutdowns, expansions, or adding temporary steam to enhance productivity and output. The need is often immediate and unexpected. It is critical to have an inventory that meets user requirements when and where they are needed. That is the basis upon which the Victory Energy industrial boiler rental business was conceived and built.
Renting industrial equipment gives users the chance to “trial” a product without committing to a long-term product solution. They see first-hand how the product performs and the way in which the company responds from a customer support standpoint. The percentage is high that, based upon favorable impressions, a rental customer becomes a new equipment buyer. It is often the path to a long-term relationship.
You can’t be in the rental business in a small way. While a vibrant rental business represents another revenue stream that continues to pay off over time, it can’t be taken lightly. Experienced people that are fully versed in the nuances of the rental business must be employed to oversee the business, rather than having it be another responsibility of already overburdened sales people. Walter Heussmann heads up the rental business for Victory Energy, having over two decades of experience in the rental boiler segment. The company has made a significant year- over-year investment in the rental business offering to continue to build a robust fleet of boilers – business quarter in and business quarter out. This includes developing distributor relationships strategically located across the country to bring Victory Energy rental boiler inventory closer to customers to mitigate shipping costs. To be ultimately successful, a rental business offering must always be viewed as forethought rather than an afterthought.
For more information on Victory Energy’s industrial boiler rental programs, visit Rental Boilers