Key Takeaways for Decision Makers
EQUIPMENT MANAGER/ESTIMATOR: Given the array of differing equipment rates per state, be sure to use EquipmentWatch’s regional adjustments in order to ensure you’re using the most accurate rates possible.
It’s no surprise that different areas of the country have different factors that cause equipment ownership costs to fluctuate. One of these factors is per capita income which reflects the economics of a particular state and can have a direct impact on other factors like local mechanics wage, sales tax, and freight; all of which can affect ownership costs as well as operating costs. However, climate tends to be one of the more critical factors in differing costs from state to state. Maximum and minimum temperatures as well as precipitation are taken into consideration due to their effect on the average annual use hours. Extreme temperatures and precipitation shorten a working season which means ownership rates will be higher in order to recover fixed costs. States with volatile climates tend to have more downtime for both equipment and workers.
State level adjustments also vary by the type of equipment due to differing equipment functions and purposes. Paving and drilling equipment, for example, have a shorter working season than many other equipment types due to difficulty or inability to preform correctly during colder months. Below is a ranking of all 50 states based on how expensive it is to own a 3-wheel compactors:
|Rank||State||Adjustment Multiplier||Rank||State||Adjustment Multiplier|
|1||Alaska – North||134.60%||28||Nevada||96.00%|
|2||Alaska – South||125.60%||29||Florida||95.50%|
|3||Alaska – Central||116.60%||30||Iowa||95.20%|
|11||California – North||102.00%||38||Tennessee||93.10%|
|24||California – South||97.80%||51||Arizona||88.60%|