CONTACT ERA:
EuropeanRental Association (ERA)
AvenueJules Bordet 142
B-1140Brussels
Belgium
Tel: + 32 2 761 1604
Fax: + 32 2 761 1699
E-MAIL:
Secretariat-Administration:
Secretary General:
the Solvay Brussels School. As well as equipment
manufacturers, several companies from contractors
to large industrial corporations have been invited
to participate in this study. They provide, on a
confidential basis, actual input from apanel of their
own equipment at work.
For the larger equipment, above 15 tonnes,
detailed research has been conducted to identify
every cost in consumables, such as lubricant,
grease and filters, and inwearing parts likewheels,
undercarriage and attachments engaging tools.
Specific analyses are also dedicated to the
determinationof the residual value.
Thesemodels will soon be released by the ERA in
three distinct products categories:
For two comprehensive models, as described
above for machinery above 15 tonnes, one model
is adjusted for wheel loader types products and
one model is designed for track excavator types
products.
The thirdmodelwill bea reductionof thecomplete
model with simplified features for all products
under 15 tonnes, which represent the vast majority
of the equipment operatedby ental companies.
The document “Key drivers of the Total Cost of
Ownership” is available on the ERA website, at
papers-and-guidance-to-industry/total-cost-of-
ownership. The financial and operational model for
the calculation of the TCO is available on request
from the ERA Secretariat,
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59
ERANEWS
The European Rental
Association details itswork in
a vital area formanufacturers
and rental companies.
Thetotalcost
ofownership
T
he ERA has recently developed
a series of studies in relation
to the total cost of ownership
(TCO) of equipment.
A first project consisted of
identifying the key drivers of
the TCO. This project has been
developedwithin theERAEquipment
Technology Committee at the
request of the original equipment
manufacturers (OEMs) and the rental companies
participating to thisworkinggroup.
This guidance document represents a common
understanding among rental companies and the
construction equipment manufacturers of the key
drivers influencing the TCO of equipment, including
the threemainphasesof the lifecycleof equipment.
These are acquisition, operation, and maintenance
anddivestment.
As a result of identifying these key drivers, the
ERAworkinggrouphasprioritised trying tooptimise
cost in operational areas such as maintenance and
repair and spare parts.
Research
A second project was to establish a financial and
operational model for the calculation of the TCO.
This was part of a larger project centered on the
research and development of rental solutions
for larger equipment and was conducted in
collaborationwith a team of Masters students from
IRNAPRIL-MAY 2015
