NEW ANSI RULES TO AFFECT RENTAL PRICES

NEW ANSI RULES TO AFFECT RENTAL PRICES

The American National Standards Institute (ANSI) is expected to soon release new standards for boom and scissor-type lifts. The updated standards have significant implications for the construction, equipment rental and equipment sales industries and are expected to affect prices and balance sheets.

The new standards dictating design, calculations, safety requirements and test methods (A92.20- 201X) for aerial work platforms, now referred to as Mobile Elevating Work Platforms (MEWPs), are nearing implementation, according to the Scaffold & Access Industry Association (SAIA).

The new regulations are replacing prior ANSI standards A92.3, A92.5, A92.6 and A92.8 which covered manually propelled aerial, booms, scissors and under-bridge inspection machines. The updates are focused on moving North American equipment toward current global standards. The updates to regulation will include: terminology changes, platform load sensing technology requirements, new wind force requirements, new stability testing, new railing height requirements and new platform entry requirements.

These adjustments will force manufacturers to invest heavily in production to supply compliant machines within the one-year from implementation requirement. Manufacturers are expected to raise prices of machines to offset the additional production costs. Therefore, direct buyers, including rental companies and dealers, will tenably be forced to raise rental fees in order to purchase compliant machines.

A good indicator of how the new ANSI standards may affect rental and dealer prices is to examine how prior regulation updates have affected the industrial equipment industry. The most recent update which had a sweeping impact on the industry was Tier 4. Tier 4 is the government mandated reduction in harmful exhaust gases for diesel powered equipment. The U.S. Environmental Protection Agency enacted diesel engine regulations, at the manufacturing level, which required new engines be certified to restricted levels of oxides of nitrogen (NOx) and particulate matter (PM).

Tier 4 reportedly increased the price of machines by an approximate 12 percent, according to an article published by ForConstructionsPros.com.

The price of renting new, ANSI-compliant machines will depend on many factors, including: the increase in price on the wholesale level, how quickly rental companies incorporate new machines into their fleets and how the rental market balances the new cost-load with competitive pricing among industry contenders.

Manufacturers will be required to supply ANSI-compliant machines within one year of publication of the new standards. That is, machinery manufactured in the year after publication can be built to comply with either the old or the new standards. Any machinery built after this time will be required to comply with the new standards. Existing machines will not be required to comply with the new standards and will remain approved for use.

At this time, it’s unclear how exactly rental prices will be affected but it is clear that prices will, eventually, rise. Hugg & Hall is dedicated to transparency and is committed to keeping customers informed with the most up-to-date information regarding the construction and industrial equipment market.

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