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.

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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.