Industry Analysis & Industry Trends
The Tool and Equipment Rental industry was significantly challenged by the economic recession's impact on consumer spending and construction activity. As residential and nonresidential construction levels recovered over the past five years, demand for tool and equipment rental began its climb to prerecession levels. Over the next five years, the industry will benefit from a growing trend towards renting instead of purchasing tools and equipment, increased construction activity and growing disposable income will spur growth... purchase to read more
Industry Report - Industry Investment Chapter
Unlike most service industries, the Tool and Equipment Rental industry has a moderate level of capital intensity. The industry's higher-than-average depreciation costs are due to the purchase of many capital goods and equipment for rent to customers; larger products include aerial lifts, professional-grade lawn mowers, industrial pumps and pressure washers. Additionally, companies must continuously replace equipment with newer models to meet contractor demand and keep inventories in good working order. Technological developments also drive inventory replacement.
IBISWorld estimates that for every $1.00 spent in labor costs, the average operator typically spends $0.18 in capital investment... purchase to read more