Inflation continues to strain equipment fleet budgets, with 41% of respondents to a new survey of equipment managers saying that they are increasing maintenance spending next year in order to extend the useful life of their machines. One in four (23%) said that they are increasing 2025 acquisition budgets in order to ensure that they will have the equipment when it’s needed.
Some 374 managers responded to the question in Construction Equipment’s 2024 Annual Report & Forecast survey. For a look at last year’s forecast by fleet managers, see “2024 Prices Remain a Concern for Fleets.”
According to analysis of the Producer Price Index by Associated Builders & Contractors, construction equipment and machinery prices have jumped 30% since February 2020.
The ability to boost budgets increases as fleet size increases, according to the survey. Among managers of fleets with estimated replacement value (ERV) above $10 million, 47% will increase maintenance spending and 37% will increase acquisition funding. Among small fleets—ERV less than $500,000—only 22% expect to be able to increase maintenance budgets and 11% acquisition spending. Fleets whose primary work is material production or highway/heavy construction also are increasing maintenance spending: 47% of highway/heavy fleets and 50% of material production fleets.
Other fleets are not keeping pace with inflation or are turning from purchases in order to adjust. One in five (21%) said that their total budget has not increased to keep pace with inflation. Slightly fewer (18%) say that they expect to rent more rather than buy, and 5% expect to lease.
