Record Breaking MonthFebruary was a very interesting month when it comes to equipment rentals. This has been the busiest month for Confirmed Rentals the past 24 months.
Below is a graph of the past 24 months for Mobile Treatment Centre “Inquiries” and “Confirmed” rentals.
“Inquiries” are defined as leads or prospects for rentals.
“Confirmed” are defined as the actual rental or credit card deposit from a customer.
As you can see the majority of the previous 24 months regularly has higher inquiries than confirmed rentals.
This is typical and gives a good insight into what the rental market may be doing.
In February, however, we saw the first month that “Confirmed” rentals greatly outweighed “Inquiries” in the overall market demand within a 30 day period. This is the busiest month for our rentals we’ve seen since the drop in oil prices in 2014.
What does this mean?
Since 80% of our revenue comes from Oil and Gas projects in Western Canada, this could be an early indication of another uprising of the demand in this sector.
Some would say the increase comes from the higher standard of safety for companies that may or may not use MTCs or Ambulances on their projects. The higher demand comes from higher standards for emergency response.
However, as shown in the chart below, the number of COR certified safety programs implemented in the western provinces reached it’s peak in 2010 and have stayed relatively steady for the past 7 years.
Whether the jump in the rental demand has increased from recovering oil prices or the simple fact that Canadian OH&S standards have systematically improved over the past 2 decades, we are seeing a large amount of new projects being funded in Western Canada.
Many small businesses are scrambling to find reliable equipment and good workers for the sudden increase of demand. At MTC Rentals we are dedicated to maintain our quality of equipment and supply life-saving transportation vehicles to industrial projects.
If you have any questions or inquiries about our rentals, please call 780 652-1204.