ARA introduces industry performance standards
By American Rental AssociationNews
Sept. 28, 2011 - The American Rental Association has announced 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
of physical use of equipment, financial use,
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. The ARA undertook this landmark initiative to further the growth and
professionalism of the industry,” says Christine Wehrman, ARA 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, ARA’s vice president for
government affairs, project leader and co-author of the white paper with
Michael Graboski, an ARA consultant.
The 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 in 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.
For more information, contact Tom Hubbell, ARA vice president for marketing and communication at 800-334-2177, ext. 248, or firstname.lastname@example.org.
American Rental Association
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