From Ownership
to Usership

Getting to know our customers and their needs better is a cornerstone of Caterpillar’s strategy to deliver profitable growth. In doing so, we’ve discovered that while growth in the construction industry is driving an increase in construction equipment use, it doesn’t always equate to an equipment purchase. Some segments of customers are increasingly renting construction equipment, and they’re doing so far more than they did in the past.

“Rental is a requirement of many current customers and a gateway to new customers who want flexibility and convenient solutions,” Norris said. “We’re ensuring our dealers understand our strategy and providing them the tools to profitably grow their businesses.”

This represents an exciting opportunity for Caterpillar to meet the needs of existing customers and access new ones. The global revenue opportunity for equipment rental is roughly $90 billion and is projected to grow at a 5 percent compounded annual growth rate*. This growth is being driven by more construction customers turning to rental to access the latest technology, increase uptime and reduce maintenance concerns. Caterpillar is poised to offer not only the equipment itself, but also additional services that often accompany a rental agreement.

We’re rapidly growing our rental business in response to these changing demands. In 2018, Cat® dealers opened more than 40 Cat Rental Stores worldwide and outpaced our major competitors in revenue growth. To communicate our emerging rental strategy globally, we hosted two rental summits in 2018, one in the United States and one in Europe. Hundreds of dealer representatives attended both events to ensure dealer alignment with our rental strategy, learn rental best practices, share success stories and help the dealer community grow as a network.

Caterpillar is sharing its expertise across the rental industry and gaining notice globally as a key player with a wide array of heavy equipment and allied vendor equipment for rent. Global Rental & Used Equipment Services Director Kurt Norris was a keynote speaker at the International Rental Conference in Shanghai, where he discussed Caterpillar’s strategy, our dealer network, growth trends within rental, customer expectations and Caterpillar’s rental business model.

“Rental is a requirement of many current customers and a gateway to new customers who want flexibility and convenient solutions,” Norris said. “We’re ensuring our dealers understand our strategy and providing them the tools to profitably grow their businesses.”

*Sources: American Rental Association, European Rental Association, IBIS and Ducker studies.