Heavy lifting: The steady recovery of construction markets will lead to moderate revenue growth

The Tool and Equipment Rental industry falls under a larger umbrella of rental industries that have largely benefited from growing nonresidential construction markets. However, the industry contended with initial contraction early in the period before growing for the remainder. Due to the nature of the industry and general construction, many of the tools rented by operators are used in the later stages of construction, with specialized and heavy equipment being used earlier in the process. Therefore, as multifamily and nonresidential construction grew slowly, revenue continued its decline. Early in the five-year period, the industry remained constrained as residential clients and nonresidential clients alike were wary of spending...purchase to read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • As construction projects increase, contractors will resume their prominence as the industry’s largest consumer group
  • Increased disposable income has enabled consumers to employ more industry services
  • The stability of construction markets will continue to help the industry
  • Industry Report - Starting a New Business Chapter

    Barriers to entering the Tool and Equipment Rental industry are low to moderate. Though companies and individuals can start with modest inventory levels, there is a relatively steep capital investment needed to maintain an inventory of tools, equipment and machinery demanded by local contractors and DIY consumers. At the beginning of the period, smaller companies and new entrants were able to acquire inventory from auctions by the larger companies that had excessive fleets due to lagging demand that carried over from the previous period. This made the start-up capital needed to enter the industry less over the period.High costs to purchase or lease building facilities vary across regions. These expenses can be considerable in well-established, highly populated cities. How...purchase to read more.

    Additional Insights for the Tool & Equipment Rental Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Tool & Equipment Rental Industry are

  • Ability to attract local patronage
  • Ability to quickly adopt new technology
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Value of residential construction in the Tool & Equipment Rental industry impact industry performance..

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    What's in this report

    What is the Tool & Equipment Rental Industry?

    This industry comprises companies that primarily rent tools and small- to medium-size pieces of equipment, including contractors’ and builders’ tools and equipment and home maintenance tools for a short period of time. Enterprises that primarily focus on other rentals like trucks and trailers without drivers, party and banquet equipment and personal and household goods are all excluded from this industry.

    Industry Products
  • Contractor equipment
  • Home tools and DIY equipment rental
  • Consumer goods rental
  • Rental of other goods
  • Delivery, repair and other services
  • Industry Activities
  • Rental of contractors' and builders' tools and equipment
  • Rental of home repair tools
  • Rental of moving equipment and supplies, except trucks and vans
  • Rental of floor-waxing and -sanding machines
  • Rental of lawn and garden equipment
  • Rental of various work tools and equipment
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Value of residential construction
  • Housing starts
  • House price index
  • Value of private nonresidential construction

  • Current Performance
  • Construction markets
  • Consumer markets
  • Profit and industry landscape
  • Chart: Revenue Growth

  • Industry Outlook
  • Steady construction activity
  • Structural shifts
  • Table: Tool & Equipment Rental Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Tool & Equipment Rental Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Home Builders
  • Apartment & Condominium Construction
  • Industrial Building Construction
  • Painters
  • Carpenters
  • Roofing Contractors
  • Municipal Building Construction
  • Plumbers
  • Consumers

  • Key Selling Industries
  • Farm, Lawn & Garden Equipment Wholesaling
  • Industrial Machinery & Equipment Wholesaling
  • Industrial Supplies Wholesaling
  • Tool & Hardware Wholesaling

  • Products & Services
  • Contractor equipment
  • Home tools and DIY equipment rental
  • Rental of other goods
  • Consumer goods rental
  • Delivery, repair and other services
  • Chart: Tool & Equipment Rental Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Private households
  • Independent builders and contractors
  • Construction and industrial companies
  • Government
  • Chart: Major Market Segmentation for the Tool & Equipment Rental Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesDepreciationOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Tool & Equipment Rental

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Tool & Equipment Rental Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Tool & Equipment Rental 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 Tool & Equipment Rental Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Value of Private Nonresidential Construction (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Aerial Lifts
  • Equipment used to raise workers or materials to work sites.
  • Do-It-Yourself
  • A project in which a consumer does the work themselves instead of hiring a professional contractor.
  • Nonemployer
  • An industry operator with one location and no employees (e.g. a sole proprietor).
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Tool & Equipment Rental 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
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    This report on Tool & Equipment Rental:
    • 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 Tool & Equipment Rental 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 Tool & Equipment Rental, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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