Fluctuations No More: How Equipment Leasing Companies Can Ride Out Supply and Demand

Fluctuations No More: How Equipment Leasing Companies Can Ride Out Supply and Demand

Fluctuations No More: How Equipment Leasing Companies Can Ride Out Supply and Demand

 

Companies who lease equipment are heavily affected by the industries they serve. Industry-specific recessions can have a huge impact on your ability to lease out vehicles, assets, and equipment. While recessions in the industries you serve will still impact your business in one form or another, using effective asset tracking track is the best way to mitigate potential damage and financial loss to your business.

In many industries, supply and demand levels regularly fluctuate throughout the year. But when demand falls too far, it can cause a prolonged recession. And when recessions go on for too long, many companies go out of business and lose thousands of dollars in revenue.

This situation is especially true for leased equipment companies. Any business that leases equipment is often profoundly affected by the industries it serves. Essentially, industry-specific recessions can have a significant impact on their ability to lease out vehicles, assets, and equipment. After all, their clients won’t lease equipment if they don’t need it.

For example, the mining industry has been going through a significant financial downturn. The price of copper has dropped to $9 per pound from $21 per pound over a five year period. Why, then, would mining companies rent out any extra equipment they don’t need?

Many other industries besides mining also lease out equipment. They include:

  • Manufacturing
  • Rental cars
  • Furniture staging
  • Retail
  • Storage and moving
  • Farming and agriculture

Equipment leasing vendors must learn to weather severe fluctuations in the supply and demand of the industries they serve. Some months are busy, while others are dead. Trying to keep your business operating when demand changes so drastically can be difficult if you don’t plan.

These potential downfalls make it more critical than ever to track the assets you lease. In fact, some experts in the captive finance field think that tracking technology is the only way that manufacturing companies will continue to succeed.

Implementing the right tracking system will help you plan for downfalls. When you have a plan in place, your business can keep functioning at a steady pace regardless of industry conditions.

https://www.assetpanda.com/wp-content/themes/salient/css/fonts/svg/basic_sheet_multiple .svg
TO READ THE REST, PLEASE
DOWNLOAD
WHITE PAPER

Asset Panda’s custom fields is a great way to track everything related to the equipment you lease out. You can see which clients use which assets, how long they’ll be using it, and what industry they work in.  Don’t be caught unprepared during the next recession. Try out our program free for 14 days.

TO READ THE REST, PLEASE DOWNLOAD WHITE PAPER.

 

 Contact Us 

Guided Tour

Price Quote

You might also like...

Equipment Checkout Software Promotes Streamlined Asset Management

Equipment Checkout Software Promotes Streamlined Asset Management

| Asset Tracking, Blog, Use Case | No Comments

If you’ve ever had a piece of equipment vanish, then you likely…

5 Company Perks to Keep Your Employees Active and Happy

5 Company Perks to Keep Your Employees Active and Happy

| Asset Tracking, Blog, Guest Blog Post | No Comments

The definition of the word “benefit” has a few different meanings. One…

The Importance of Ethical Supply Chains to Consumers

The Importance of Ethical Supply Chains to Consumers

| Asset Tracking, Blog, Guest Blog Post | No Comments

The world of business is changing and becoming more conscious and aware…

Catastrophic Inventory Mistakes by Huge Brands and How to Avoid Them

Catastrophic Inventory Mistakes by Huge Brands and How to Avoid Them

| Asset Tracking, Blog, Guest Blog Post | No Comments

As many retailers can attest, crises of inventory can seriously harm a…

Helping The World Work Smarter™

Sign up for your FREE Guided Tour