# @jlgindustries on Instagram

- **Type:** Image
- **Original URL:** https://www.instagram.com/p/CHgUuyfli6e
- **Gondola URL:** https://gondola.cc/posts/16692841-jlgindustries-instagram
- **Thumbnail:** https://img.gondola.cc/tr:w-,h-,fo-auto/thumbnails/63cf38f241.jpg
- **Posted:** 2020-11-12T21:02:07.000+00:00

## Caption

With many markets still in flux due to the pandemic, #fleetplanning may look different. Here's what Michael Roth, editor-in-chief of RER magazine, predicts may happen. 👇 
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Q: How might fleet planning look different this year?
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A: I expect rental companies to be very cautious with their spending this year. There are a lot of question marks in the economy because the pandemic is not going away any time soon. Rental activity varies by region and type of equipment, but overall industry utilization dropped 10 to 20 percent in the second quarter with some improvement over the summer but very uncertain expectations for the fourth quarter and into 2021.

For the most part, I expect most rental companies to be cautious and uncertain about adding a lot of fleet when so many construction areas look very uncertain.

Everything from housing to office construction to multi-family construction is likely to be flat at best. Petrochemical work, shutdowns, transportation industries, overall industrial markets all look uncertain.

Whenever there is a downturn, rental companies must watch the balance sheet carefully and unless they know they have specific jobs, will be very cautious about fleet spending, except where replacement spending is needed, or if they have specific jobs going forward.

While I do expect a tendency towards caution in expenditures, some rental companies like to get more aggressive in such times, hoping to grab market share while it’s in flux. So, a degree of expansion will likely continue, but caution will be the bigger tendency.

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## Tags

fleetplanning

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