Tool & Equipment Rental in the US Industry Market Research Report from IBISWorld has Been Updated

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Recovering from a downturn in demand from the construction sector, a long-term trend among consumer and businesses toward renting instead of purchasing outright will aid industry growth. For these reasons, industry research firm IBISWorld has updated a report on the Tool & Equipment Rental industry in its growing industry report collection.

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Higher levels of industrial and residential construction will drive rental demand

The Tool and Equipment Rental industry was significantly challenged by the economic recession's impact on consumer spending and construction activity. The industry rents a range of equipment on short-term basis, including contractors' tools and equipment, home repair tools, lawn and garden equipment and moving equipment. Most items are used during new construction, repair and renovation activities. According to IBISWorld industry analyst Matthew MacFarland, "as residential and nonresidential construction levels plummeted over the past five years, demand for tool and equipment rental suffered in turn."

High unemployment and the recession's adverse impact on household income levels forced homeowners to cut back on discretionary spending on gardening and remodeling projects, further hurting demand for tools and equipment rented out by this industry. On the other hand, lower disposable income also encouraged more consumers to undertake do-it-yourself projects rather than hire professional services, particularly as a way to increase property and home value during a period of low home prices. As such, "consumers and households became a more important market for industry operators during the past five years than in years prior," says MacFarland. On the whole, though, contractors remained the industry's primary customer base, and falling demand from new construction crippled this market, causing revenue to plunge 14.8% in 2009. In the five years to 2012, revenue for the Tool and Equipment Rental industry is expected to fall at an annualized rate of 3.3% to $2.2 billion.

The industry is largely characterized by a large number of small businesses operating in local contractor or household markets. For these small-scale companies, the downturn in demand over the past five years weighed heavily on their ability to turn a profit. As such, the industry has undergone some consolidation over the period, as larger players acquired these struggling entities to extend market share and grow in scale. As such, industry market share concentration has been on the rise, especially as major players United Rental and RSC Holdings merged operations.

After four years of declining revenue, the industry returned to growth in 2011 and is expected to grow 4.1% in 2012. Fueled by economic recovery, the industry is benefiting from a trend toward renting instead of purchasing tools and equipment, which gained prominence during the economic downturn. Increasingly, homeowners that need a tool to complete a home improvement project are renting instead of purchasing it, and contractors are renting equipment to outsource storage and tool maintenance. This trend, along with improved disposable income and a resurgence of construction activity across a range of markets, will drive growth for the industry in the five years to 2017. For more information, visit IBISWorld’s Tool & Equipment Rental in the US industry report page.

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IBISWorld industry Report Key Topics

This industry includes companies that primarily rent tools and small- to medium-size pieces of equipment, including contractors’ and builders’ tools and equipment (e.g. professional lawn mowers or tillers) and home maintenance tools (e.g. pressure washers). Rental of heavy construction equipment and earthmoving equipment are excluded from this industry.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

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Gavin Smith
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