Industrial Truck Rental Procurement Category Market Research Report Now Available from IBISWorld

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Renters of industrial trucks have high buyer power due to the market’s fragmentation and high competition in the market, which pushes prices downward. For these reasons and to help procurement professionals make better buying decisions faster, business intelligence firm IBISWorld has added a report on the procurement of Industrial Truck Rental to its growing collection of procurement category market research reports.

IBISWorld procurement market research
In the three years to 2013, the price of renting industrial trucks has gone up slightly with suppliers’ purchase costs and increased demand from industries with material handling needs.

Industrial truck rental has a buyer power score of 3.9 out of 5.0, where a higher score represents better negotiating conditions for the renter (i.e. lessee). Buyer power is relatively high because of the market's fragmentation, meaning that supplier competition (on the basis of price, fleet composition and availability, add-on services and location) is high. Also, while the only viable substitute for rented industrial trucks is purchased equipment, rental companies face considerable competition from this substitute due to low purchase prices; this further pressures rental prices downward. Buyer power is also enhanced by the broad availability of discounts, which are awarded for reducing suppliers' marginal costs by bundling rental equipment or renting in bulk.

Rental companies have kept renting an attractive alternative to buying in the post-recession years by raising the price of industrial truck rental at a slower rate than the purchase price of industrial trucks has grown. As such, IBISWorld expects trends in industrial truck rentals to mirror the secular shift occurring in equipment renting generally, in that equipment leasing has consistently grown over the past decade regardless of economic cycles. While this trend detracts from buyer power by placing renters in a growing pool of suppliers' customers, favorable rental price trends offset these losses. Major suppliers include United Rentals Inc., Hertz Equipment Rental Corporation, NES Rentals Holdings Inc. and Home Depot Inc.

The price of industrial truck rentals has grown slowly and with low volatility; low price volatility is particularly beneficial to renters because many rent ad hoc and without significant lead time, leaving lessees with no planning strategy to combat price volatility. Although prices will grow at a slightly faster rate in the three years to 2016, price growth will remain fairly subdued and low volatility will persist, keeping price trends favorable for renters. Lessees that can foresee heightened material handling needs will continue to accrue minor savings from locking down rates months in advance. Such savings are more pronounced for summer rentals, since rates peak in the summer months due to heightened construction demand.

For more information, visit IBISWorld’s Industrial Truck Rental procurement category market research report page.

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IBISWorld Procurement Report Key Topics

This report is intended to help renters of industrial trucks, which are nonroad going vehicles used for material handling. Industrial trucks include the following nonmotorized and motorized equipment: carts, dollies, hand trucks, pallet trucks, pushcarts, wheelbarrows, creepers, wagons, tilt trucks, shelf trolleys, power buggies, tuggers, platform trucks and electric tow tractors. This report does not cover lifting equipment such as stackers and forklifts.

Executive Summary
Pricing Environment
Price Fundamentals
Benchmark Price
Pricing Model
Price Drivers
Recent Price Trend
Price Forecast
Product Characteristics
Product Life Cycle
Total Cost of Ownership
Product Specialization
Substitute Goods
Quality Control
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Competitive Environment
Market Share Concentration
Market Profitability
Switching Costs
Purchasing Process
Buying Basics
Buying Lead Time
Selection Process
Key RFP Elements
Negotiation Questions
Buyer Power Factors
Key Statistics

About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement 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
IBISWorld Inc.
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