Builders are increasingly preferring to rent the necessary machines and equipment

Prague – In the Czech Republic, construction companies and entrepreneurs are increasingly opting to rent the necessary machines and equipment instead of purchasing them. Last year, the number of construction machines sold to rental companies increased by 53 percent compared to 2019. A total of 2,200 new machines were sold last year, of which 415 went to rental companies. This is based on data from the Association of Importers of Construction Machinery, which is available to ČTK. According to the association and experts, the reason for the increased rental of machines is the rising cost of labor; renting a machine for a certain period is thus economically more advantageous.

"In 2019, 12 percent of the total sales of construction machines were sold to rental companies, while in 2024, it was 19 percent. My estimate for the five-year overall growth of rentals in this area is ten to 15 percent. However, this increase is still small, not reaching the level of developed European countries and especially the USA, where I estimate the rental share at 80 to 90 percent," said the chairman of the Association of Importers of Construction Machinery, František Novotný.

According to Novotný, mini excavators, loaders, and telescopic handlers are often rented. Small excavators and loaders are rented on a daily basis for about 3,600 crowns including VAT. There is also interest in machines used for surface treatment, such as blasting equipment, which is used, among other things, for cleaning parts and removing coatings.

"Due to the overlap of activities abroad and overseas, rentals, especially for expensive and maintenance-intensive equipment, are practically the only option for small entrepreneurs and managing sudden contracts even for large companies," stated Jiří Neuwirth. However, renting machines in this specific segment is seasonal, according to him. "In the season, we rent something every week, in winter it’s about once a month," he added.

In addition to the machines themselves, tools are also rented. There is growing interest in specialized tools that make work more efficient. Recently, rental companies have invested millions of crowns into cordless tools. For example, demolition hammers can be rented per day from approximately 450 to 1,000 crowns according to the price list.

According to Jiří Nouza, president of the Union of Entrepreneurs in Construction, the increasing number of rented construction machines proves that the construction sector in the Czech Republic is not doing badly. "Any drastic reduction in rentals and sales of construction machines would be a signal that a crisis is looming," Nouza said.

According to data from the Czech Statistical Office, construction production in the Czech Republic fell by 2.4 percent year-on-year in 2024, the same as in 2023. Thus, construction has declined for the second consecutive year. Last year, this was primarily due to ground construction, that is, building construction. However, in December last year, construction production performed well, and its year-on-year growth accelerated to 9.7 percent from November's 2.5 percent. Month-on-month, production was up by 4.5 percent.