How to Do More With Less – Skilled Labor Shortage

The equipment rental industry has seen significant growth in recent years, as more and more companies have turned to renting instead of purchasing equipment. However, recent challenges are threatening the stability of these companies. Falling prices for used equipment and tightening credit conditions are making it harder for rental companies to finance new purchases, while rising shortages in skilled labor are squeezing profit margins.

In January 2022, the US had 11.3 million open positions, and not nearly enough skilled workers to fill these openings. Similarly, in 2021, the US suffered a record deficit of 80,000 truck drivers, and with 72% of all freight being moved by truck in America, this is a serious problem.

How does this challenge affect equipment rental businesses, and to what degree?

The current labor shortage in the United States is affecting businesses in various ways, with equipment rental businesses feeling the pinch in finding qualified workers and retaining the ones they have.

The first challenge is finding enough workers to staff all the positions needed to keep a business running smoothly. This can be especially difficult for businesses that require highly skilled workers, such as those in the medical or engineering fields. Companies that don’t require such specialized skills can still have difficulty finding enough workers to fill all their open positions.

The second challenge facing equipment rental businesses is retaining their existing workers. With so many businesses competing for a limited pool of workers, keeping employees from leaving for greener pastures is becoming increasingly difficult. This makes it very difficult to find and retain both the mechanics necessary to keep equipment rent-ready and drivers to transport equipment to job sites. The result is increased overtime for internal drivers and greater reliance on expensive third-party haulers.

The shortage of workers also affects the quality of equipment rentals, as businesses struggle to maintain the same standards they did in the past — a serious challenge for the industry that needs to be addressed urgently. This problem is compounded by many workers being burned out from working long hours and dealing with high stress levels.

The labor shortage is significantly impacting the equipment rental businesses, and it’s only likely to worsen in the coming years. Companies must find creative ways to attract and retain workers if they want to stay afloat.

What can rental companies do to overcome these challenges?

With an aging workforce and not enough young people entering the field to replace them, rental companies are struggling to find and keep qualified workers. This shortage has already begun to have an impact on businesses. Many companies report difficulty finding qualified workers; some even have to turn away work because they don’t have the staff to complete it. This leads to longer wait times for repairs, higher customer prices, and more employee stress. The situation will only worsen as the baby boomer generation begins to retire en masse.

So, what can rental companies do to overcome these challenges?

There are a few things that rental companies can do to help alleviate the labor shortage crisis:

Leverage service management software

Leveraging service management software to increase wrench time and strategically prioritize work to overcome these labor shortage challenges is a crucial way rental companies can improve their business. By using software to manage their inventory, they can streamline their workflow and keep track of all their equipment in one place. This will allow them to better utilize their technicians’ time and ensure they are working on the most pressing issues first.

Additionally, by keeping track of their equipment, they can make sure that it is well-maintained and always ready for use. This will help reduce downtime and ensure that their customers are always satisfied.

Utilize transportation management software

The driver shortage has made it difficult for companies to find qualified applicants and has put upward pressure on wages. Many companies are turning to transportation management software (TMS) to overcome these challenges. TMS can help companies leverage their internal drivers more effectively, leading to increased efficiency and cost savings.

TMS helps companies plan routes more efficiently, assign loads to the nearest driver, and track driver hours and location. This information can be used to improve route planning, optimize driver assignments, and reduce labor costs.

In addition to reducing labor costs, TMS can also help companies improve customer service. By tracking driver location and hours, TMS can help dispatchers provide real-time updates to customers on estimated delivery times. This information can improve communication with customers and create a better overall experience.

Offer incentives to employees and jobseekers

To combat these labor challenges, many rental companies offer incentives to make their open positions more appealing to job seekers. These incentives can range from higher wages to more flexible work schedules. By providing these incentives, rental companies hope to attract more qualified applicants and fill their open positions.

While this strategy may work in the short term, it’s essential for rental companies to also focus on long-term solutions. These solutions could include providing more training and development opportunities for employees, as well as investing in new technologies that can automate some of the tasks that are currently being done by human workers.

By taking a holistic approach to the labor shortage issue, rental companies can ensure that they’re able to attract and retain the best employees for the long term.

Fight the labor shortage with the right rental equipment software

The skilled labor shortage is a challenge that rental companies are starting to feel throughout the country. This challenge affects equipment rental businesses in different ways, but most notably, it increases costs and decreases productivity. However, there are some steps that rental companies can take to overcome these challenges. One way to do this is by using the right rental equipment software for your business.

Wynne Systems’ White Paper outlines how you can fight the labor shortage with the help of technology. To learn more about this process and how it can benefit your business, download our White Paper today.