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Rates rise on heavy equipment in 2022 Equipment Rental Rates Guide

Listings must be updated or vendors risk removal from Guide

Rental rates are set to increase, in some categories substantially, on most heavy equipment in 2022 as a result of higher costs, including those for capital acquisition.

The decision on rate increases was made by the MHCA Equipment Rental Rates Committee during its meetings for the preparation of the 2022 Guide, which is published in the spring.

“We have seen extraordinary pressure on heavy equipment through last year and again this year, in some respect due to the pandemic’s impact on production and supply of parts and machinery,” Committee Chair Greg McKee said. “That cost, in all fairness to equipment owners, has to be reflected in the rates charged for use of that equipment.”

The average rate increase in the affected equipment is 3.26%. However, the rates for excavators in Groups 6-10 will rise more steeply, due to weight re-classification. Rates for pavement profilers and stabilizers/reclaimers will not rise in 2022, because of adjustments made to those equipment types for 2021.

The decision on rates were made upon review, as well, of the rates in other jurisdictions.

 Other changes in the coming year’s guide include

  • Excavator weight classifications in Groups 6-11 have been adjusted to reflect both market realities and Manitoba Infrastructure tendering practices.
  • Skid steer rubber tire and compact track loaders have been classified by operating capacity according to SAE J818, the North American legal standard.
  • Lasers are added as an attachment for excavators, at a rate of $10 per hour
  • Language has been added to the ‘How rates are calculated’ to clarify that breaks are included in the equipment operator’s wage, but not unpaid lunch breaks.

“Our committee made the difficult decision this year, as well, to inform equipment vendors who repeatedly do not respond to our request for model updates that they risk seeing their listings removed from guide, or equipment models moved to the non-current side,” McKee noted. “We will decide upon such action on a case-by-case basis, as need arises.”

He said that the Guide relies heavily upon vendors to help keep the model listings current and relevant. When a vendor has not submitted their adjustments for two or more years, their listings may be inaccurate.

Each year, vendors are sent letters by MHCA, with a spreadsheet of their model listings, asking that they update them. Those letters now carry a caution about the potential implication of chronic non-responses.

In the event such actions have to be taken, the Committee and MHCA will endeavor to assist equipment owners who require rate information to submit bids on tenders.