Los Angeles, CA (PRWEB) July 02, 2013
The Industrial Equipment Rental and Leasing industry provides a wide range of products, including industrial machinery, some construction equipment, entertainment products and medical devices. “The variety of products included in the industry mitigates the impact of fluctuations in demand in any one market,” according to IBISWorld industry analyst Matthew McFarland. Nonetheless, the recession stifled demand for equipment and caused rental prices to drop. Consequently, industry revenue is expected to fall at an annualized rate of 0.3% to $20.5 billion in the five years to 2013.
The Industrial Equipment Rental & Leasing industry's reliance on heavy industry and manufacturing, as well as its diverse product offerings, tie its performance to the health of the overall US economy. When businesses grow or expand operations, the need for new office, retail and industrial spaces stimulates demand from contractors who rent equipment for carpet installation, woodworking, door manufacturing, carpet cleaning and other construction-related activities. “Manufacturers rent industrial machinery to increase capacity when demand calls for it,” says McFarland. Other factors, such as consumer spending on entertainment, can influence the frequency with which production studios rent audiovisual equipment. State and federal government budgets drive demand for rental equipment in institutional buildings.
The Industrial Equipment Rental and Leasing industry has a low level of market share concentration, with the top four companies accounting for less than 20% of total industry revenue. Concentration increased substantially in 2012 due to the merger of United Rentals and former rival RSC, which almost doubled United Rentals' market share.
The recession caused revenue to decline for three consecutive years, consistent with the general slowdown in economic activity. But the industry began to rebound in 2011, growing 3.4%, and revenue posted stronger 4.6% growth in 2012. Mild investment in nonresidential construction is expected to limit industry growth to 1.2% in 2013, but better performance is forecast through 2018. This growth will be driven by industrial activity across most sectors and by the stabilizing influence of the healthcare sector, which consistently demands medical devices for rent because current models become obsolete quickly. As rental becomes a more widespread tactic to combat volatile demand and make otherwise-fixed costs more flexible, IBISWorld forecasts industry revenue to rise during the next five years. For more information, visit IBISWorld’s Industrial Equipment Rental & Leasing in the US industry report page.
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IBISWorld industry Report Key Topics
Companies in this industry rent or lease a variety of equipment used in the manufacturing, medical, metalwork, carpentry, agriculture, telecommunications, motion pictures and entertainment industries. The industry also includes the renting of furniture for schools, theaters and other institutional buildings. The rental of heavy construction equipment, such as aerial lifts, forklifts and earthmovers, mining and forestry machinery, and office equipment, is not included in this industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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 http://www.ibisworld.com or call 1-800-330-3772.