Leased resistance: Rebounding from sluggish demand, the industry will benefit from increased construction

Operators in the Heavy Equipment Rental industry rent or lease heavy construction and transportation equipment, ranging from excavators to airplanes. The industry's financial performance is subject to trends and activity in an array of downstream industries, including air, sea and rail transportation; highway, street, tunnel and bridge construction; and oil exploration and drilling. General economic conditions, such as interest rates, unemployment and disposable income, also play an important role in determining demand for the industry's products. Over the five years to 2017, growing demand from downstream markets, especially from the transportation segment, helped the industry continue its positive trajectory. IBISWorld estimates revenue to rise at an annualized rate of 1.3%...read more.

Industry Statistics & Market Size
Revenue
$9bn
Annual Growth 12-17
1.3%
Forecast Growth 17-22
Profit
Employment
6,711
Businesses
620
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Industry Threats & Opportunities

  • Operators benefited from growth in the value of construction and demand from rail transportation
  • Increased housing starts and growth in total construction spending have sustained industry demand
  • Demand for the industry’s machinery rentals and leases is anticipated to rise
  • Industry Report - Industry Locations Chapter

    Establishments in this industry tend to be located near downstream operations. Rental and leasing companies specializing in transportation equipment are concentrated near major cities like Los Angeles, San Diego and San Francisco thanks to access to large air, sea and rail ports. Operations specializing in construction, industrial and mining equipment tend to be more geographically dispersed throughout the state. Over 75.0% of all industry establishments offer construction, industrial and mining equipment rentals, however, the remaining establishments account for well over 75.0% of total revenue.Overall, Los Angeles County is home to the largest share of establishments (20.3%). Bei...purchase to read more.

    Additional Insights for the Heavy Equipment Rental in California Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Heavy Equipment Rental in California Industry are

  • Ability to effectively manage risk
  • Ability to alter goods and services produced in favor of market conditions
  • Prompt delivery to market
  • IBISWorld analysts also discuss how external factors such as International trips by US residents and Value of Residential Construction in California in the Heavy Equipment Rental in California industry impact industry performance..

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    What is the Heavy Equipment Rental in California Industry?

    Industry operators rent or lease heavy construction, off-highway transportation, mining and forestry machinery and equipment without operators. Operators may rent or lease products including aircraft, railcars, steamships, tugboats, bulldozers, earthmoving equipment, cranes or well-drilling machinery and equipment.

    Industry Products
  • Water transportation equipment
  • Rail transportation equipment
  • Air transportation equipment
  • Heavy construction and industrial equipment
  • Oilfield and well drilling equipment
  • Industry Activities
  • Aircraft rental or leasing
  • Barge rental or leasing
  • Boat, ship and steamship rental or leasing
  • Railcar rental or leasing
  • Tanker rental or leasing
  • Towboat and tugboat rental or leasing
  • Forestry and logging machinery and equipment rental or leasing
  • Heavy construction equipment rental
  • Mining machinery and equipment rental or leasing
  • Oil field machinery and equipment rental or leasing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • International trips by US residents
  • Value of Residential Construction in California
  • Value of nonresidential construction in California
  • Annual Crude Oil Production in California

  • Current Performance
  • Transportation demand
  • Heavy machinery demand
  • Industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Improving downstream demand
  • Industry structure
  • Table: Heavy Equipment Rental in California Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Heavy Equipment Rental in California Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Logging
  • Oil Drilling & Gas Extraction
  • Bridge & Elevated Highway Construction
  • International Airlines
  • Domestic Airlines
  • Rail Transportation
  • Ocean & Coastal Transportation
  • Commercial Building Construction
  • Road & Highway Construction
  • Road & Highway Maintenance

  • Key Selling Industries
  • Aircraft, Engine & Parts Manufacturing
  • Boat Building
  • Construction Machinery Manufacturing
  • Mining, Oil & Gas Machinery Manufacturing
  • Ship Building
  • Train, Subway & Transit Car Manufacturing

  • Products & Services
  • Air transportation equipment
  • Heavy construction and industrial equipment
  • Rail transportation equipment
  • Oilfield and well drilling equipment
  • Water transportation equipment
  • Chart: Heavy Equipment Rental in California Industry Products and Services Segmentation

  • Major Markets
  • Transportation operations
  • Construction, industrial, mining and forestry operations
  • Chart: Major Market Segmentation for the Heavy Equipment Rental in California Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Depreciation
  • Wages
  • Rent, Utilities and Marketing
  • Other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Heavy Equipment Rental in California

  • Basis of Competition
  • Internal
  • External

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Heavy Equipment Rental in California Industry

  • Air Lease CorporationGeneral Electric CompanyHerc Holdings Inc.Sunbelt RentalsUnited Rentals Inc.
  • Table: Air Lease Corporation - financial performance
  • Table: General Electric Company - financial performance
  • Table: Herc Holdings Inc. - financial performance
  • Table: Sunbelt Rentals - financial performance
  • Table: United Rentals Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Heavy Equipment Rental in California Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Heavy Equipment Rental in California Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Value of residential construction in California (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Finance Lease
  • A type of lease in which the lessee has use of the asset throughout most of its economic life and beyond. A nominal residual payment is common at the end of the lease term to assume ownership.
  • Operating Lease
  • A type of lease in which the lessee only uses the asset for some of the asset's life.
  • Whole-Of-Life Costing System
  • A system designed to minimize costs and assist owners with procurement and maintenance decisions throughout the life of an asset.
  • Why buy this report?

    IBISWorld’s industry research report on Heavy Equipment Rental in California provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Heavy Equipment Rental in California:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Heavy Equipment Rental in California market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Heavy Equipment Rental in California, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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