5 Ways Tariffs Could Impact Your Heavy Equipment Rental Business
Tariffs may seem like a concern reserved for manufacturers and importers—but for heavy equipment rental businesses, they can have ripple effects that reach deep into your operations and bottom line. Whether you're renting out excavators, skid steers, or aerial lifts, changes in trade policy and import duties can alter costs, supply chains, and customer demand in ways that are hard to ignore.
Here are five key ways tariffs could impact your rental business:
1. Rising Equipment Costs
When tariffs are placed on imported machinery or components, equipment manufacturers often pass those costs down the line. This means the price of new machines may rise—regardless of whether they’re imported or made in the U.S. If your business depends on purchasing new equipment each year to stay competitive, higher acquisition costs can quickly add up.
What to watch: Monitor price changes from OEMs and ask about projected cost increases. Staying informed can help you time purchases and negotiate better deals.
2. Reduced Equipment Availability
Tariffs can disrupt global supply chains, especially if manufacturers rely on parts from multiple countries. This can lead to delays in production or a limited supply of certain models—making it harder for rental businesses to get the equipment they need, when they need it.
Tip: Consider diversifying your supplier relationships or investing in equipment that has strong domestic support and service networks.
3. Shifting Demand from Contractors
Tariffs can drive up construction costs—whether through more expensive materials, imported equipment, or fuel. In some cases, this leads contractors to delay or downsize projects, which can translate to fewer rental contracts and lower utilization rates for your fleet.
But there's another side to the story: tariffs can also spur a rise in domestic manufacturing and infrastructure investment. As companies reshore operations or expand U.S.-based facilities to avoid import costs, demand for new industrial, commercial, and logistics projects may rise. That means more job sites—and more need for heavy equipment rentals.
Strategy: Stay close to your customers and local market trends. If you’re in a region seeing new factories, warehouses, or public works projects, now might be the time to double down on fleet availability and readiness.
4. Higher Maintenance and Repair Expenses
Some tariffs target replacement parts or components rather than finished machinery. This can raise the cost of maintaining and repairing your fleet, especially if you run a mix of older or imported models.
Actionable step: Track maintenance costs over time and identify which units are becoming more expensive to maintain. It may be worth rotating those out in favor of more cost-effective equipment.
5. Opportunity for Growth and Differentiation
Not all the news is bad. If tariffs make ownership more expensive for contractors, some may shift toward renting instead of buying. This trend can benefit rental companies—especially those that are ready to scale up, offer a reliable experience, and stand out with value-added services.
How to prepare: Make it easy for contractors to do business with you. Offering online reservations, customer portals, and transparent pricing can help you win in a more competitive landscape.
Final Thoughts
Tariffs are just one of many macroeconomic forces that can influence the heavy equipment rental industry. While you can’t control policy decisions, you can adapt your business strategy to stay resilient. By understanding these impacts and using tools like Renterra to streamline your operations, you're better positioned to weather the changes—and even find new opportunities to grow.
