Midyear Business Survey: Niche Strategy, Rentals, and Energy Keep Dealers Moving in The Industry's Game of Musical ChairsBy Kim Phelan
Article Date: 08-01-2012
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Many predict softer sales for second half of 2012 and boost rental fleet investments.
Even though most dealers attained higher revenues by this June than they collected at midyear 2011, far fewer anticipate new and used equipment sales to increase in the second half of 2012, and the majority who responded to CED's recent business survey (62.9 percent) predict the rental side of their business will increase for the remainder of the year – namely because their customers are cautious about the risks associated with owning iron. Fifty-six percent of dealers are benefiting from the energy sector, and pockets of homebuilding, scrap and demolition, agriculture, material handling and aggregates are keeping some dealerships busy – but consensus is strong that construction is just plain weak.
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