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What are the key sales KPIs for the Heavy Equipment Dealership industry in 2027?

👁 0 views📖 2,127 words⏱ 10 min read5/30/2026

Direct Answer

The nine KPIs that actually run a heavy equipment dealership in 2027 are: New Equipment Units Sold, Used Equipment Units Sold, Parts Revenue ($M, the recurring annuity), Service Labor Revenue ($M), Rental Revenue ($M), Product Support Absorption %, Customer Machine Population (CMP) Coverage %, OEM Territory Market Share %, Technician Headcount and Billable Utilization %, and Customer Service Agreement (CSA) Attach Rate %.

Together they answer the only question that matters to dealer principals at Holt Cat, Empire Southwest, Finning, Toromont, RDO, and Brandt: is product support covering the entire fixed-cost base before a single new machine is sold?

TL;DR
— Equipment dealers do not make money on iron; they make money on parts, service, and rental. Best-in-class absorption is 100%+ (AED's 2024 Cost of Doing Business study pegged the industry average at 71%), CSA attach should clear 35-45% on new sales, and technician billable utilization needs to sit above 75% to fund the overhead.
Track the nine KPIs weekly with the AED CODB and Equipment World benchmarks, and re-forecast CMP coverage every quarter as the territory's machine fleet ages.

Why Heavy Equipment Dealerships Work Differently

A Cat or Komatsu dealership looks like a vehicle dealership on the surface and is nothing like one underneath. Four mechanics make it its own category.

The absorption math runs the business. Product support absorption is the single number every dealer principal recites at the AED Summit. It is parts and service gross profit divided by total dealership operating expense. At 100%+ absorption, parts and service alone cover every dollar of overhead — rent, IT, sales comp, the executive team — and every new and used machine sold drops straight to operating income.

AED's 2024 Cost of Doing Business study had the industry running near 71%, with top-quartile dealers above 100%. Below 70% and a soft equipment cycle will eat your year.

Iron is the install base, not the product. A new 980 wheel loader sold to a quarry in 2027 generates roughly $200K-$300K of parts and service revenue over its 8-10 year life — multiple times its sticker margin. The new-equipment salesperson is acquiring a 10-year annuity for the product support side of the house.

That is why CMP coverage — share of the territory's installed Cat or Komatsu fleet that buys parts and service from you, not the independent shop — is the real growth metric, and why Finning, Toromont, and Holt Cat all run telematics-driven "machine ownership" programs to keep that number above 70%.

The CAT Rental Store changed the cycle. Rental revenue used to be a small line. Today most Cat dealers run a full CAT Rental Store, John Deere dealers run a John Deere WorkSight rental program, and rental fleets routinely hit 15-25% of dealership revenue. Rental rolls into used inventory after 18-24 months, which feeds the used desk and the parts annuity.

A dealer without a real rental fleet in 2027 is leaving both revenue and used-equipment supply on the table.

Technician capacity is the binding constraint, not demand. The 2026 AED labor study showed a national shortfall of ~73,000 diesel and equipment technicians. You can sell all the CSAs you want; if you cannot staff the bays you cannot bill the hours, and your absorption number stalls.

That is why technician headcount, billable utilization, and apprenticeship pipeline sit on the dealer principal's weekly scorecard alongside revenue.

The 9 KPIs, In Depth

1. New Equipment Units Sold (units, by category). Reported by class — compact (skid steers, mini excavators), construction (excavators, dozers, loaders), heavy (large mining, pipeline), and power systems (gensets, marine). Finning sold roughly $2.9B of new equipment in full-year 2025, up 6.9% YoY; Toromont Q4 2025 revenue hit $1.42B with new equipment leading.

Unit count matters more than dollars at the territory level because each unit is a 10-year annuity.

2. Used Equipment Units Sold (units + GP%). Used is where a dealer's trade-in discipline and rental-fleet rotation show up. Finning's used-equipment sales were $357M in 2025, down 3.9% YoY as the cycle softened. Healthy used gross margin sits 12-18%; below 8% means you over-paid on the trade.

3. Parts Revenue ($M, the recurring annuity). The single most stable line on the P&L. Caterpillar's Services revenue (the OEM-side proxy for dealer parts demand) ran at the $24B annual run-rate Cat targeted at its 2022 Investor Day. Top dealers grow parts 5-8% per year through cycles by tying it to CMP coverage and CSA renewals.

4. Service Labor Revenue ($M). Billable technician hours times billed labor rate. Standard 2027 shop rates sit at $185-$245/hour depending on metro and machine class. Field service rates run $210-$280/hr with mileage. The KPI is not the rate; it is the billable hour count, because the rate is regional and the count is operational.

5. Rental Revenue ($M). CAT Rental Store revenue, plus the dealer's own rental fleet across compact and aerial. Finning's 2025 rental revenue was $220.7M, up 2% YoY.

Industry rental penetration of dealer revenue is 15-25%; United Rentals, Sunbelt, and Herc are the comp set, but the dealer's edge is OEM parts access and the trade-in path.

6. Product Support Absorption %. Parts + service gross profit divided by total dealership operating expense. AED's 2024 Cost of Doing Business study put the industry average at 71%; top-quartile dealers run 100%+.

North American Equipment Dealers Association's parallel 2024 study showed a 71.37% average absorption with 10.2% ROA across ag and CE dealers. This is the master KPI.

7. Customer Machine Population (CMP) Coverage %. Of the OEM machines operating in your assigned territory (Cat tracks this via PIN-level telematics; Komatsu does the same via Komtrax), what percentage are buying parts and service from you versus going to independent shops or self-servicing?

Healthy dealers run 65-75%; Holt Cat and Empire Southwest reportedly clear 80% in their Texas and Arizona territories on construction and quarry fleets.

8. OEM Territory Market Share %. Your share of new equipment sales in your territory versus competing OEM dealers (a Cat dealer measures share against Komatsu, Deere, Volvo, Hitachi, Liebherr in its AOR). Cat dealers typically defend 35-50% territory share depending on segment; on large mining trucks the number can clear 60%.

The KPI drives both volume and the future parts annuity.

9. Technician Headcount + Billable Utilization % + CSA Attach Rate %. Three sub-KPIs that travel together because they are operationally linked. Healthy billable utilization is 75-82% of available hours.

CSA (Customer Service Agreement, also called PM contracts or Cat Equipment Protection Plans) attach rate on new equipment should sit 35-45% at top dealers — every CSA locks in 3-5 years of parts and labor and is the cleanest absorption boost a dealer can buy.

flowchart TD A[Territory Machine Population] --> B{Whose Iron?} B -->|Our OEM Sold by Us| C[Captive CMP] B -->|Our OEM Sold Elsewhere| D[Conquest Opportunity] B -->|Competing OEM| E[New Equipment Battle] C --> F[CSA Attach 35-45%] D --> F F --> G[Parts Annuity $200-300K per unit] G --> H[Service Labor 75-82% Utilization] H --> I[Product Support GP] I --> J{Absorption %} J -->|100%+ Top Quartile| K[New + Used + Rental = Pure Profit] J -->|71% Industry Avg| L[Need Equipment Cycle to Hit Plan] J -->|Below 65%| M[Cycle Risk - Restructure] E --> N[New Unit Sale] N --> A K --> O[Rental Fleet Reinvestment] O --> A

Real Operators

Holt Cat runs the Texas Cat territory and is one of the largest privately-held Cat dealers in the world — diversified across construction, power systems, and oil and gas. Empire Southwest holds the Arizona and southeast California Cat territory with deep mining exposure to copper and aggregates.

Finning International is the world's largest Cat dealer by revenue ($7.8B FY2025) across western Canada, the UK, Ireland, and South America. Toromont Industries runs the eastern Canada Cat territory plus CIMCO refrigeration ($1.42B Q4 2025). Western States Equipment covers the Pacific Northwest Cat territory.

Wagner Equipment runs Colorado and New Mexico. On the Komatsu side, Komatsu America sells direct in some regions and through distributors elsewhere; Modern Group and Road Machinery are major Komatsu distributors. On Deere construction, Brandt runs Canada plus a growing US footprint, RDO Equipment spans the upper Midwest into the Mountain West, and Murphy Tractor covers the central plains.

Volvo CE dealers like ASC Construction Equipment round out the competitive landscape.

Failure Modes

The four that kill heavy equipment dealerships. (1) Iron-led growth without absorption — chasing new equipment volume to hit OEM quota while parts and service grow flat, so absorption drifts from 85% to 65% and the next downcycle wipes operating income. (2) Rental fleet age creep — letting average rental-fleet age climb past 36 months because you do not want to take the depreciation hit, then watching rental margins collapse and used-equipment supply dry up.

(3) Technician attrition with no apprenticeship pipeline — losing 8-12% of techs per year without backfill from in-house apprentice programs or partnerships with the Equipment Dealers Foundation, so billable hours fall even as the parts counter takes orders. (4) CSA program neglect — letting CSA attach rate drift below 25% because the sales team treats it as an add-on instead of bundling it into every new equipment quote, surrendering the parts annuity to independents.

Reporting Cadence

Daily: parts counter sales, work-order open/close, technician clock-in vs billable hours, rental fleet utilization. Weekly: new and used equipment units booked vs plan, CSA attach rate on the week's new sales, rental fleet on-rent percentage, top-10 customer parts spend. Monthly: absorption percentage, CMP coverage updates from Cat VisionLink or Komtrax data, technician billable utilization by branch, used-equipment aging report.

Quarterly: territory market share update (OEM-provided), CSA renewal pipeline, full P&L by branch and department, AED CODB benchmark comparison.

flowchart TD A[Daily Branch Telemetry] --> B[Parts Counter + Work Orders + Tech Clock + Rental Util] B --> C[Weekly Dealer Ops Review] C --> D[Unit Bookings + CSA Attach + Top Customer Parts] D --> E[Monthly Dealer Principal Review] E --> F[Absorption % + CMP Coverage + Tech Util + Used Aging] F --> G[Quarterly OEM + Board] G --> H[Territory Share + CSA Renewals + AED Benchmark] H --> I[Re-plan Fleet + Tech Hiring + CSA Pricing] I --> A

30/60/90 Day Plan

Days 1-30: instrument the nine KPIs end-to-end in your DMS (DSI, e-Emphasys, CDK Heavy Truck, or the OEM-specific platform). Reconcile the territory machine population file from Cat or Komatsu against your active customer master — the gap is your CMP conquest list. Pull the AED CODB report and benchmark your absorption, gross margin, and operating expense ratios against peer-group medians.

Days 31-60: ship the absorption dashboard at the branch level. Wire it to parts gross profit, service gross profit, and the operating expense allocation per branch. Identify the bottom-two branches and run a 60-day intervention — most often it is technician billable utilization sitting below 70%, or CSA attach below 25% on new sales.

Run a CSA blitz on the top-50 customers without active agreements.

Days 61-90: rebuild the rental fleet age and mix plan. Target rental-fleet age under 30 months with a structured rotation into used inventory, and reset rental utilization targets at 65-72%. Roll out the territory share scorecard with the OEM regional manager.

Present the new operating model to the dealer principal with monthly absorption, CMP coverage, and CSA attach checkpoints.

FAQ

What is a healthy product support absorption rate? 100%+ is best-in-class, 85-100% is healthy, 70-85% is industry average (AED 2024 CODB put the median near 71%), and below 65% means a soft equipment cycle will produce an operating loss. The number is the master KPI for a reason.

How do CSA attach rates compare across OEMs? Cat's Equipment Protection Plans and Customer Value Agreements typically run 35-45% attach at top dealers, Komatsu's Komatsu Care 40-50% on new construction equipment because the first three years are bundled, and Deere's Smart Industrial PM programs 25-35%.

Higher attach equals more locked-in parts and labor revenue.

Is rental still a real growth lever in 2027? Yes. Rental penetration of dealer revenue has climbed from under 10% a decade ago to 15-25% today at most Cat and Deere dealers, and the rental fleet feeds both the used desk and the parts annuity. The risk is fleet age — keep it under 30 months.

How do you measure CMP coverage if customers do not opt in to telematics? Cat's VisionLink and Komatsu's Komtrax now ship enabled by default on every new machine post-2022, so the data is there. For older fleet you triangulate with parts purchase history and dealer-installed inspection records.

Healthy coverage tracking sits at 80%+ of the territory's post-2018 fleet.

Sources

Associated Equipment Distributors (AED) — Cost of Doing Business Report (2024 + 2025)
AED — Quarterly Operating Performance Benchmark Reports
North American Equipment Dealers Association — 2024 Cost of Doing Business Study
Equipment World — 2026 Dealer Profitability & Outlook Reports
Caterpillar Inc. — 2022 Investor Day Services Revenue Disclosures + FY2025 Form 10-K
Finning International — 2025 Annual Report and Q4 2025 Investor Materials
Toromont Industries — 2025 Annual Information Form and Q4 2025 Earnings
Komatsu Ltd. — FY2025 Annual Report and Komtrax Disclosures
Deere & Company — Construction & Forestry Segment 10-K Disclosures (FY2025)
Equipment Dealers Foundation — 2026 Technician Workforce Study

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### Direct Answer

The nine KPIs that actually run a heavy equipment dealership in 2027 are: **New Equipment Units Sold**, **Used Equipment Units Sold**, **Parts Revenue ($M, the recurring annuity)**, **Service Labor Revenue ($M)**, **Rental Revenue ($M)**, **Product Support Absorption %**, **Customer Machine Population (CMP) Coverage %**, **OEM Territory Market Share %**, **Technician Headcount and Billable Utilization %**, and **Customer Service Agreement (CSA) Attach Rate %**. Together they answer the only question that matters to dealer principals at Holt Cat, Empire Southwest, Finning, Toromont, RDO, and Brandt: is product support covering the entire fixed-cost base before a single new machine is sold?

> **TL;DR** — Equipment dealers do not make money on iron; they make money on parts, service, and rental. Best-in-class absorption is **100%+** (AED's 2024 Cost of Doing Business study pegged the industry average at **71%**), CSA attach should clear **35-45%** on new sales, and technician billable utilization needs to sit **above 75%** to fund the overhead. Track the nine KPIs weekly with the AED CODB and Equipment World benchmarks, and re-forecast CMP coverage every quarter as the territory's machine fleet ages.

## Why Heavy Equipment Dealerships Work Differently

A Cat or Komatsu dealership looks like a vehicle dealership on the surface and is nothing like one underneath. Four mechanics make it its own category.

**The absorption math runs the business.** Product support absorption is the single number every dealer principal recites at the AED Summit. It is parts and service gross profit divided by total dealership operating expense. At **100%+ absorption**, parts and service alone cover every dollar of overhead — rent, IT, sales comp, the executive team — and every new and used machine sold drops straight to operating income. AED's 2024 Cost of Doing Business study had the industry running near **71%**, with top-quartile dealers above **100%**. Below 70% and a soft equipment cycle will eat your year.

**Iron is the install base, not the product.** A new 980 wheel loader sold to a quarry in 2027 generates roughly **$200K-$300K of parts and service revenue over its 8-10 year life** — multiple times its sticker margin. The new-equipment salesperson is acquiring a 10-year annuity for the product support side of the house. That is why **CMP coverage** — share of the territory's installed Cat or Komatsu fleet that buys parts and service from you, not the independent shop — is the real growth metric, and why Finning, Toromont, and Holt Cat all run telematics-driven "machine ownership" programs to keep that number above **70%**.

**The CAT Rental Store changed the cycle.** Rental revenue used to be a small line. Today most Cat dealers run a full CAT Rental Store, John Deere dealers run a John Deere WorkSight rental program, and rental fleets routinely hit **15-25% of dealership revenue**. Rental rolls into used inventory after 18-24 months, which feeds the used desk and the parts annuity. A dealer without a real rental fleet in 2027 is leaving both revenue and used-equipment supply on the table.

**Technician capacity is the binding constraint, not demand.** The 2026 AED labor study showed **a national shortfall of ~73,000 diesel and equipment technicians**. You can sell all the CSAs you want; if you cannot staff the bays you cannot bill the hours, and your absorption number stalls. That is why **technician headcount, billable utilization, and apprenticeship pipeline** sit on the dealer principal's weekly scorecard alongside revenue.

## The 9 KPIs, In Depth

**1. New Equipment Units Sold (units, by category).** Reported by class — compact (skid steers, mini excavators), construction (excavators, dozers, loaders), heavy (large mining, pipeline), and power systems (gensets, marine). Finning sold roughly **$2.9B of new equipment** in full-year 2025, up **6.9% YoY**; Toromont Q4 2025 revenue hit **$1.42B with new equipment leading**. Unit count matters more than dollars at the territory level because each unit is a 10-year annuity.

**2. Used Equipment Units Sold (units + GP%).** Used is where a dealer's trade-in discipline and rental-fleet rotation show up. Finning's used-equipment sales were **$357M in 2025**, down 3.9% YoY as the cycle softened. Healthy used gross margin sits **12-18%**; below 8% means you over-paid on the trade.

**3. Parts Revenue ($M, the recurring annuity).** The single most stable line on the P&L. Caterpillar's Services revenue (the OEM-side proxy for dealer parts demand) ran at the **$24B annual run-rate** Cat targeted at its 2022 Investor Day. Top dealers grow parts **5-8% per year** through cycles by tying it to CMP coverage and CSA renewals.

**4. Service Labor Revenue ($M).** Billable technician hours times billed labor rate. Standard 2027 shop rates sit at **$185-$245/hour** depending on metro and machine class. Field service rates run **$210-$280/hr** with mileage. The KPI is not the rate; it is the **billable hour count**, because the rate is regional and the count is operational.

**5. Rental Revenue ($M).** CAT Rental Store revenue, plus the dealer's own rental fleet across compact and aerial. Finning's 2025 rental revenue was **$220.7M, up 2% YoY**. Industry rental penetration of dealer revenue is **15-25%**; United Rentals, Sunbelt, and Herc are the comp set, but the dealer's edge is OEM parts access and the trade-in path.

**6. Product Support Absorption %.** Parts + service gross profit divided by total dealership operating expense. AED's 2024 Cost of Doing Business study put the **industry average at 71%**; top-quartile dealers run **100%+**. North American Equipment Dealers Association's parallel 2024 study showed a **71.37% average absorption with 10.2% ROA** across ag and CE dealers. This is the master KPI.

**7. Customer Machine Population (CMP) Coverage %.** Of the OEM machines operating in your assigned territory (Cat tracks this via PIN-level telematics; Komatsu does the same via Komtrax), what percentage are buying parts and service from you versus going to independent shops or self-servicing? Healthy dealers run **65-75%**; Holt Cat and Empire Southwest reportedly clear **80%** in their Texas and Arizona territories on construction and quarry fleets.

**8. OEM Territory Market Share %.** Your share of new equipment sales in your territory versus competing OEM dealers (a Cat dealer measures share against Komatsu, Deere, Volvo, Hitachi, Liebherr in its AOR). Cat dealers typically defend **35-50% territory share** depending on segment; on large mining trucks the number can clear 60%. The KPI drives both volume and the future parts annuity.

**9. Technician Headcount + Billable Utilization % + CSA Attach Rate %.** Three sub-KPIs that travel together because they are operationally linked. Healthy billable utilization is **75-82%** of available hours. CSA (Customer Service Agreement, also called PM contracts or Cat Equipment Protection Plans) attach rate on new equipment should sit **35-45%** at top dealers — every CSA locks in 3-5 years of parts and labor and is the cleanest absorption boost a dealer can buy.

```mermaid
flowchart TD
    A[Territory Machine Population] --> B{Whose Iron?}
    B -->|Our OEM Sold by Us| C[Captive CMP]
    B -->|Our OEM Sold Elsewhere| D[Conquest Opportunity]
    B -->|Competing OEM| E[New Equipment Battle]
    C --> F[CSA Attach 35-45%]
    D --> F
    F --> G[Parts Annuity $200-300K per unit]
    G --> H[Service Labor 75-82% Utilization]
    H --> I[Product Support GP]
    I --> J{Absorption %}
    J -->|100%+ Top Quartile| K[New + Used + Rental = Pure Profit]
    J -->|71% Industry Avg| L[Need Equipment Cycle to Hit Plan]
    J -->|Below 65%| M[Cycle Risk - Restructure]
    E --> N[New Unit Sale]
    N --> A
    K --> O[Rental Fleet Reinvestment]
    O --> A
```

## Real Operators

**Holt Cat** runs the Texas Cat territory and is one of the largest privately-held Cat dealers in the world — diversified across construction, power systems, and oil and gas. **Empire Southwest** holds the Arizona and southeast California Cat territory with deep mining exposure to copper and aggregates. **Finning International** is the world's largest Cat dealer by revenue ($7.8B FY2025) across western Canada, the UK, Ireland, and South America. **Toromont Industries** runs the eastern Canada Cat territory plus CIMCO refrigeration ($1.42B Q4 2025). **Western States Equipment** covers the Pacific Northwest Cat territory. **Wagner Equipment** runs Colorado and New Mexico. On the Komatsu side, **Komatsu America** sells direct in some regions and through distributors elsewhere; **Modern Group** and **Road Machinery** are major Komatsu distributors. On Deere construction, **Brandt** runs Canada plus a growing US footprint, **RDO Equipment** spans the upper Midwest into the Mountain West, and **Murphy Tractor** covers the central plains. **Volvo CE** dealers like **ASC Construction Equipment** round out the competitive landscape.

## Failure Modes

The four that kill heavy equipment dealerships. **(1) Iron-led growth without absorption** — chasing new equipment volume to hit OEM quota while parts and service grow flat, so absorption drifts from 85% to 65% and the next downcycle wipes operating income. **(2) Rental fleet age creep** — letting average rental-fleet age climb past 36 months because you do not want to take the depreciation hit, then watching rental margins collapse and used-equipment supply dry up. **(3) Technician attrition with no apprenticeship pipeline** — losing 8-12% of techs per year without backfill from in-house apprentice programs or partnerships with the Equipment Dealers Foundation, so billable hours fall even as the parts counter takes orders. **(4) CSA program neglect** — letting CSA attach rate drift below 25% because the sales team treats it as an add-on instead of bundling it into every new equipment quote, surrendering the parts annuity to independents.

## Reporting Cadence

**Daily:** parts counter sales, work-order open/close, technician clock-in vs billable hours, rental fleet utilization. **Weekly:** new and used equipment units booked vs plan, CSA attach rate on the week's new sales, rental fleet on-rent percentage, top-10 customer parts spend. **Monthly:** absorption percentage, CMP coverage updates from Cat VisionLink or Komtrax data, technician billable utilization by branch, used-equipment aging report. **Quarterly:** territory market share update (OEM-provided), CSA renewal pipeline, full P&L by branch and department, AED CODB benchmark comparison.

```mermaid
flowchart TD
    A[Daily Branch Telemetry] --> B[Parts Counter + Work Orders + Tech Clock + Rental Util]
    B --> C[Weekly Dealer Ops Review]
    C --> D[Unit Bookings + CSA Attach + Top Customer Parts]
    D --> E[Monthly Dealer Principal Review]
    E --> F[Absorption % + CMP Coverage + Tech Util + Used Aging]
    F --> G[Quarterly OEM + Board]
    G --> H[Territory Share + CSA Renewals + AED Benchmark]
    H --> I[Re-plan Fleet + Tech Hiring + CSA Pricing]
    I --> A
```

## 30/60/90 Day Plan

**Days 1-30:** instrument the nine KPIs end-to-end in your DMS (DSI, e-Emphasys, CDK Heavy Truck, or the OEM-specific platform). Reconcile the territory machine population file from Cat or Komatsu against your active customer master — the gap is your CMP conquest list. Pull the AED CODB report and benchmark your absorption, gross margin, and operating expense ratios against peer-group medians.

**Days 31-60:** ship the absorption dashboard at the branch level. Wire it to parts gross profit, service gross profit, and the operating expense allocation per branch. Identify the bottom-two branches and run a 60-day intervention — most often it is technician billable utilization sitting below 70%, or CSA attach below 25% on new sales. Run a CSA blitz on the top-50 customers without active agreements.

**Days 61-90:** rebuild the rental fleet age and mix plan. Target rental-fleet age under 30 months with a structured rotation into used inventory, and reset rental utilization targets at **65-72%**. Roll out the territory share scorecard with the OEM regional manager. Present the new operating model to the dealer principal with monthly absorption, CMP coverage, and CSA attach checkpoints.

## FAQ

**What is a healthy product support absorption rate?** **100%+ is best-in-class**, **85-100% is healthy**, **70-85% is industry average** (AED 2024 CODB put the median near 71%), and **below 65% means a soft equipment cycle will produce an operating loss**. The number is the master KPI for a reason.

**How do CSA attach rates compare across OEMs?** Cat's Equipment Protection Plans and Customer Value Agreements typically run **35-45% attach** at top dealers, Komatsu's Komatsu Care **40-50% on new construction equipment** because the first three years are bundled, and Deere's Smart Industrial PM programs **25-35%**. Higher attach equals more locked-in parts and labor revenue.

**Is rental still a real growth lever in 2027?** Yes. Rental penetration of dealer revenue has climbed from under 10% a decade ago to **15-25% today** at most Cat and Deere dealers, and the rental fleet feeds both the used desk and the parts annuity. The risk is fleet age — keep it under 30 months.

**How do you measure CMP coverage if customers do not opt in to telematics?** Cat's VisionLink and Komatsu's Komtrax now ship enabled by default on every new machine post-2022, so the data is there. For older fleet you triangulate with parts purchase history and dealer-installed inspection records. Healthy coverage tracking sits at **80%+ of the territory's post-2018 fleet**.

## Sources

- Associated Equipment Distributors (AED) — Cost of Doing Business Report (2024 + 2025)
- AED — Quarterly Operating Performance Benchmark Reports
- North American Equipment Dealers Association — 2024 Cost of Doing Business Study
- Equipment World — 2026 Dealer Profitability & Outlook Reports
- Caterpillar Inc. — 2022 Investor Day Services Revenue Disclosures + FY2025 Form 10-K
- Finning International — 2025 Annual Report and Q4 2025 Investor Materials
- Toromont Industries — 2025 Annual Information Form and Q4 2025 Earnings
- Komatsu Ltd. — FY2025 Annual Report and Komtrax Disclosures
- Deere & Company — Construction & Forestry Segment 10-K Disclosures (FY2025)
- Equipment Dealers Foundation — 2026 Technician Workforce Study

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