Publically traded equipment rental companies such as United Rentals, Stamford, Conn., and Hertz Equipment Rental Corp., Park Ridge, N.J., already are using ARA Rental Market Metrics™ to calculate and report financial performance. “We use the ARA Rental Market Metrics and urge the whole industry to adopt these valuable standards,” says Lois Boyd, group president, Hertz Equipment Rental Corp.

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“ ARA RentalMarket Metrics are helping the industry to be more stable and as well as supporting it by helping people better understand the rental business.” Wynne Systems, Irvine, Calif., achieved ARA Rental Market Metrics certification more than a year ago from the American Rental Association (ARA), which first published the voluntary standards in a white paper released in 2011. Since then, Automated Rental Management, San Antonio, and PFW System Corp., London, Ontario, Canada, have achieved certification with other software companies ready to follow. Rouse Analytics, Beverly Hills, Calif., also has adopted ARA Rental Market Metrics as the standard for its Rental Metrics Benchmark Service, which provides rental companies of all sizes with a comparison of their own key performance metrics relative to the aggregated performance metrics of the industry. ARA Rental Market Metrics provides equipment rental companies with a consistent way of calculating, benchmarking and reporting critical performance measures.

It defines industry standards for the definition of a day, original equipment cost (OEC) and for the calculation of time or physical utilization of equipment, financial utilization, fleet age and percentage change in period-over-period rental rates. “The ARA has been working with software companies to license and certify the use of ARA Rental Market Metrics to further the growth and professionalism of rental companies within the industry and help analysts and financial institutions better understand the equipment rental industry,” says Christine Wehrman, ARA’s executive vice president and CEO.

“It is a priority of ARA to make this business management intelligence available to rental businesses of all sizes,” Wehrman says. When used, ARA Rental Market Metrics provides equipment rental companies with a way to measure the performance of their business with a common benchmark that can be used within the company, by industry professionals, investors and analysts to compare a company’s performance over time and in relationship to a competitor.

More information about ARA Rental Market Metrics is available online by visiting and clicking on “ ARA Rental Market Metrics” under the “Industry Resources” tab. An official publication of the American Rental Association. Produced by Rental Management Group. Copyright © 2013 Rental Management Magazine all rights reserved.

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