Equipment rental rates to see 18% increase across the board
No one in the industry – or any office or sector touching upon our work – has escaped the impact of the extraordinary price pressures on our operations over the past 18 months.
The combination of supply chain issues, geopolitical events half-way around the world and inflationary pressures is bearing down on the price of everything.
This is especially true of the work the heavy construction industry does – the cost of labour, equipment purchases, maintenance and, of course, fuel.
In the last 18 months, heavy construction contractors, suppliers and equipment dealers have juggled rising costs, which ultimately get passed on to the owners of heavy construction projects, including governments.
Consequently, the price pressures on many factors feeding into our equipment rental rates have triggered a significant, across-the-board increase to the rates in 2023. You will see this increase in the 2023 MHCA Membership Directory and Equipment Rental Rates Guide. (The 2023 edition will be delivered to members mid-March).
On December 8, the MHCA Equipment Rental Rates Committee concluded an across the board increase of 18% was required for the equipment rental rates.
That decision was referred to the MHCA Board of Directors for consideration and a vote. On December 14, the Board approved the recommendation.
Your Equipment Rental Rates Committee does not take these matters lightly – hence the referral for approval to the Board.
As well, prior to making the recommendation, the Committee consulted and shared information with the Alberta Roadbuilders and Heavy Construction Association and Saskatchewan Heavy Construction Association. Both associations have also adopted significant increases to be included in their 2023 Guides; MHCA’s 18% falls in the middle of the rate hikes of those associations.
Other changes in the 2023 Equipment Rental Rates Guide:
- Wheel loaders will be classified by weight in their groups
- Motor graders will also now be classified by weight
- Motor grader attachments will see rate hikes as well. The 2023 rates will be:
- All-wheel drive – 15%
- Snow wing – 15%
- Front blade, V-plow, one-way plow – 10%
Lastly, I would say there should be no surprise in any quarter or office regarding the rate increases.
However, should you be met with questions or concerns from those you deal with, please refer them to me. I will be happy to discuss our decision.
Sincerely,
Greg McKee, Chair
MHCA Equipment Rental Rates Committee
gmckee@smsequip.com
