RERMAG

AED Report Highlights Equipment Utilization

Associated Equipment Distributors recently released its 2004 Cost of Doing Business/Profit Opportunity Report, which shows that the typical AED dealership has a utilization rate of 65 percent for its rent-to-rent fleet. The report shows that the high-profit AED dealer has a utilization rate of 70 percent. The rent-to-rent utilization figures, according to AED, were determined by dividing the physical utilization rate by 360 days.

Rent-to-rent fleets, according to the report, had dollar utilization of 41 percent, though medium dealers (those whose majority of equipment sold is less than 100 hp) reported a dollar utilization of 49 percent. Heavy-equipment dealers (those whose majority of equipment sold is more than 100 hp) reported a dollar utilization of 32.5 percent.

To purchase a copy of the 2004 Cost of Doing Business/Profit Opportunity Report call 800/388-0650, ext. 319, or visit http://www.aednet.org/products/productitem.cfm?recordID=197.

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