Q3 2023: Transportation & Equiptment Rentals

Equipment rental rates have increased over the past six months and equipment is 16% more expensive to rent now than it was 2 years ago according to data from a recent Gordian webinar.

Equipment costs continue to rise in 2023 even though material prices have decreased overall. It might become a trend for managers to start value engineering from an equipment approach (i.e., re-organize project tasks to limit equipment rental time.)

Long lead times for machinery and equipment are still prevalent with overall costs up 9.3% from a year ago.

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A forty-foot shipping container rate from Asia to the US decreased by approximately 80% since this time last year. Highway transportation trucking cost has also declined over the past year and diesel prices are averaging $4 per gallon. The trucking industry still faces a driver shortage to the tune of needing 1.2 million more drivers in the next 10 years.

Associated General Contractors of America highlighted major declines in costs for diesel fuel, down 8.4% in July, 2023 compared to a year ago.