How Fuel Efficiency Transforms Equipment Rental Economics & ROI

First things first, equipment rental companies are likely not focusing on fuel efficiency when picking out a new asset. They’re looking for durability. They’re looking for an asset that lasts. They're looking for high ROI and a good TCO. Afterall, any equipment that’s out for repair isn’t making money — no matter how fuel efficient it may be.

As one of the largest operating expenses in construction, even a single-digit percentage of fuel cost savings can greatly impact a project’s bottom line, regardless of the job being a new commercial building construction or a homeowner’s backyard patio.

Fuel efficiency has two layers of financial impact: the immediate operating cost and the long-term cost of ownership/fleet management. On one hand, a lower fuel consumption reduces daily expenses right away: when a customer is running an asset for an extended period or using high-demand attachments. On the long-term side of things, lower idle time and a smarter engine management system can help reduce wear and slow the accumulation of engine hours.

“A system like the SK3000’s SmartThrottle from Ditch Witch avoids unnecessary high-rpm hours, which can contribute to longer engine life and lower maintenance needs,” says a representative from Ditch Witch. “For rental companies, that translates into better ROI because the machine can spend more of its life in revenue-generating operation instead of the shop.”

A reduced fuel usage, fewer service events due to operator issues like over-throttling, and a longer service interval horizon all contribute to a lower total cost of ownership and may possibly improve the resale value. 

Ease of use is a major factor. "A lot of those companies don't have experienced users anymore…when you make a product that's easy to use, and especially something that's automatically optimizing its output…it saves everybody money," says Tyler Ricketts, assistant manager, application engineering of Honda Engines at American Honda Motor Co. Inc.

“From a fleet-management perspective, the more efficiently a machine operates, the less strain it puts on major components,” says Mark Elton, Director of R&D at LGMG North America. “This helps rental companies maintain higher uptime, reduce technician workload, and minimize unplanned service calls.” They add that as equipment management technologies like telematics and automated controls continue to adapt, fleets can trim waste and optimize to create measurable cost advantages.

In other words, stronger fuel efficiency affects both the short-term customer-side advantages and long-term rental yard advantages by protecting operating margins while also supporting a more predictable long-term fleet performance.

Telematics plays a role here, too. It’s proven to be a great tool for enhancing the information coming to your rental customer as well as back to the home office. Many OEM brands have an integrated telematic platform standard on equipment. For example, MyCASEConstruction provides valuable insights into fuel consumption and machine workload to the operator and equipment rental operations. Another example, by integrating standard interfaces like J1939 CAN Bus into such engines as the Vanguard 400 EFI/ETC can enable direct communication with a rental company's telematics system.

Telematics has transformed fuel efficiency by providing clear visibility into how a machine is actually operating in the field. This can offer critical insight by highlighting specific areas where efficiency can be improved, whether it involves excessive idling or a machine running constantly at max load.

“By leveraging this information, rental houses can help customers optimize their operation or make sure they are renting the ‘right-sized’ equipment for the job, ultimately saving fuel and reducing unnecessary wear,” says Dylan Rewoldt, Director of Sales at Vanguard Commercial Engines.

Developments

Every year, more and more innovations are developed to improve equipment and the engines that power them. Electric models of workhorses like mini-excavators, lifting platforms, and telehandlers have each made a significant impact in the industry. 

The Vanguard 40.0 Gross HP EFI/ETC Big Block engine. Briggs & StrattonOne of Briggs & Stratton’s significant advancements for the rental market has been the integration of electronic fuel injection (EFI) and electronic throttle control (ETC) into their single-cylinder lineup, specifically the Vanguard 400 EFI/ETC. 

"Historically, these fuel technologies have been reserved for larger, more expensive V-Twin engines. By bringing EFI and ETC to our single-cylinder lineup, we are delivering unparalleled power and efficiency to equipment that makes up the core of a rental fleet,” says Rewoldt.

The Vanguard 400 EFI/ETC optimizes the fuel delivery system to offer reduced fuel consumption and quick load acceptance. This replaces less efficient mechanical systems with a smarter power delivery system that ensures consistent engine speed to eliminate the RPM fluctuations often seen when loads are applied to mechanical governors.

Briggs & Stratton also introduced the Vanguard 300, a 10.0 Gross HP single-cylinder engine designed for high-demand rental applications. While it utilizes a carburetor, it features a host of optimizations that include a mechanical compression release and choke that are tuned for improved cold-weather starting down to 0° F, ensuring efficiency even in harsh conditions.

The CASE TV370B compact track loader.CASE Construction EquipmentCASE Construction Equipment has a broad set of offerings for fully electric equipment. These include the mini-excavators CX15EV (1.5 metric tons) and CX25EV (2.5 metric tons), the 2.2 metric ton SL22EV and the 3.6 metric ton CL36EV loaders, and the 580EV electric backhoe loader.

Ditch Witch’s SmartThrottle on the SK3000 was designed to more than just a convenience feature. It actively reduces unnecessary high-rpm operation, which cuts fuel consumption for the customer and limits hourly expenses on repeat or long-duration tasks.

Honda features a handful of notable technologies on select models of portable generators: its Eco Throttle adjusts the engine speed to match the power need and fuel injection; power invertors to both protect surges and help detect the electrical demand; and fuel injection automatically adjusts fuel ratio so the generator can run appropriately. 

The major impact is the load, but these technologies have the capability to affect a portable generator's fuel efficiency from 20-80 percent. "Even if you're doing 100 percent load…the EFI is still going to be more fuel efficient," explains Ricketts. "That's where it comes in, if you don't need 100 percent load is where this technology really shines."

Honda also has a line of engines for equipment that use the same technology affecting the efficiency of not only engines but everything within — hydraulic pumps, alternators, etc. In 2019, they launched their intelligent or "IGX V Twins" and two displacement classes with fuel injection and an electronic governor. The LGMG A43JE electric articulating boom lift. LGMG North America

"Rental isn't always all about fuel efficiency, but when you actually use this equipment, you realize how much fuel you're saving," says Ricketts.

LGMG’s range includes the H625E all-electric telehandler, and are working on hybrid booms in addition to their large electric booms. One of the company’s recent introductions emphasize zero-emission operation and reduced operating costs. The LGMG A30JE and A43JE electric articulating boom lifts deliver strong performance without fuel consumption. Both models have gained adoption across rental fleets seeking a straightforward electric solution with reliable duty cycles.

The Skyjack SJ60AJHE+.SkyjackSkyjack launched its hybrid-electric and battery-electric rough terrain articulating booms for the North American market. Rental companies and contractors can rely on the all-electric zero-emission productivity of the SJ45 AJE+ and SJ60 AJE+ and the hybrid-electric flexibility of the SJ45 AJHE+ and the SJ60 AJHE+. In the hybrid-electric rough terrain articulating booms, sustainable on-board charging is provided by a 24.8 hp diesel engine with the ability to use hydrogenated vegetable oil, providing a fossil-free alternative to mineral diesel and up to a 90 percent reduction in greenhouse gas emissions compared to regular diesel. The engine is configured in series with an electric drive motor, which provides mechanical drive power.

“The hybrid-electric and battery-electric articulating booms provide low lifetime ownership and running costs, accessible engine service points, straightforward service and less mechanic time, eliminated costly emission control components, and a smaller engine that requires less fuel,” says a representative from Skyjack.

Speaking with Customers

For rentals, one of the keys is to understand the end customer’s perspective on fuel consumption. While an afternoon of work for a homeowner may not be all that concerned about fuel economy, it will likely be important to a contractor renting an asset out for weeks or longer. Position fuel-efficiency advantages as both an economic and operational value.

“The rental company that can analyze the fuel needs for their customers and explain how it will impact their bottom line will better serve their customers,” says Brady Lewis, product manager — wheel loaders, compact wheel loaders, emerging technology at CASE Construction Equipment.

Many renters may pay more attention to operating costs but don’t immediately connect fuel usage to the machine. You can help bridge that gap by explaining how certain features affect the day-to-day costs on the job. Use telematics data. Rental teams can demonstrate how fuel-efficient equipment reduces idle time, lowers fuel bills, minimizes maintenance costs, and improves overall productivity. “Sharing idle-time reports or utilization summaries during long-term rentals provides transparent evidence of cost savings,” says LGMG's Elton.

Rental customers don’t want to think about optimizing things like engine speed; the work ahead of them has taken priority. Highlight the performance benefits side of efficiency. Any automatic assistance can help newer (or less experienced) operators avoid wasteful habits. “When a renter hears that they can get the same production with fewer refueling trips, that’s a practical selling point, not a sales pitch,” says a representative of Ditch Witch.

It’s maximizing their time on the job. Consider features like the EFI engine, which translates to longer runtimes between refueling stops. These engines equipped with ETC were designed to react instantaneously to applied loads, allowing operators to power through dense materials without bogging down the engine.

This may also be an opportunity to discuss any available electric or hybrid options in the fleet. These alternatives have the potential to reduce fuel dependence, lower daily operating costs, and provide a quieter operation in sensitive environments. These benefits resonate strongly with contractors looking to control project expenses while meeting customer or regulatory expectations.

Ultimately, fuel efficiency becomes a differentiator for rental businesses when they can quantify the savings and present them as part of a whole lifecycle value proposition. When looking at the total cost of ownership, the real value often comes from the maintenance improvements paired with these efficiency technologies.