Construction declines lessened the need for services, but recovery has bode well for the future
Los Angeles, CA (PRWEB) August 20, 2013
The Portable Toilet and Portapotty Rental industry has moderately contracted over the past five years. Industry operators serve construction contractors, concerts and other outdoor events. The US construction sector collapsed in 2008 due to the subprime mortgage crisis. “As construction activity ground to a halt, work sites idled and demand for portable toilets stalled,” explains IBISWorld industry analyst David Yang. While concert promoters, campgrounds and outdoor recreational activity providers experienced steady growth during the past five years, these downstream markets were unable to make up for the dismal demand from the construction sector. As a result, IBISWorld estimates industry revenue fell at an average annual rate of 0.7% to $1.2 billion over the five years to 2013.
Demand for portable toilet rentals has gradually recovered since the recession, thanks to improving activity in the construction markets. “Concerts, campgrounds and other outdoor recreational events have also experienced strong growth as consumer disposable income picked up,” Yang adds. Despite revenue contraction over the period, Portable Toilet and Portapotty Rental industry profitability has increased; however, the growth is mostly due to the recovery from the recession. Despite cost-cutting measures, profit remains below prerecession levels.
In the five years to 2018, IBISWorld forecasts the US housing market will recover strongly as economic growth picks up. The number of housing stats is projected to increase, while total construction expenditure rises. Consumer recreation expenditure will also increase, due to rising disposable income; increasing recreation expenditure will translate to greater attendance at concerts and outdoor entertainment events which require portapotties. At the same time, environmental regulations are also expected to intensify, resulting in higher compliance costs for industry operators. As such, industry profitability is anticipated to remain stagnant over the next five years despite rising demand for portable toilet rentals.
The industry consists of a large number of small, regional firms. Many of these privately owned companies that generate significant revenue, offer a variety of sanitation services and provide an assortment of temporary structures. Therefore, these companies derive only a small proportion of sales from industry relevant operations. Current industry players include United Site Services Inc., National Construction Rentals Inc. and Andy Gump Inc. For more information, visit IBISWorld’s Portable Toilet and Portapotty Rental in the US industry report page.
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IBISWorld industry Report Key Topics
This industry rents toilets to customers for specified periods of time. These customers include construction companies, live venue service providers and on-site remediation service firms.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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