Industry Analysis & Industry Trends
The industry ebbs and flows with its downstream construction markets. As such, when investment in the nonresidential construction and renovation sector dropped, industry revenue suffered as well. However, recovery is evident in each of the industry's markets, which is expected to bring about a rebound in industry revenue. Nonetheless, rising competition from home improvement stores will limit the industry's potential for growth.... purchase to read more
Industry Report - Industry Investment Chapter
Capital intensity within the Fence and Scaffolding Rental industry is moderate. For every dollar spent on labor, the average operator dedicates $0.32 to capital expenses in 2013. This ratio is up from $0.27 to the dollar in 2008, largely because rental firms cut back on capital purchases during the recession, especially as credit conditions tightened.
Industry operators must purchase a high volume and wide range of products to rent out, which makes depreciation costs relatively high. While companies do not have to buy heavy machinery like generators and pumps, they still must put forth a substantial portion of their revenue toward acquiring scaffolding, fences and related equipment. In 2013, IBISWorld estimates that depreciation accounts for 15.5% of industry revenue... purchase to read more