In good repair: The steady recovery of construction markets will lead to moderate revenue growth

The Tool & Equipment Rental industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.


Industry Threats & Opportunities

  • As construction projects increase, contractors will resume their prominence as the industry’s largest consumer group
  • With the recovery of construction markets, consumers have opted to hire contractors
  • Higher per capita disposable income will encourage households to hire professionals to undertake home improvement projects
  • Industry Analysis & Industry Trends

    The Tool and Equipment Rental industry is one of many renting industries to benefit from improving nonresidential construction markets. However, this industry's improvements have been gradual. It was not until these markets had mostly recovered that industry operators began experiencing increased demand for their services. Over the next five years, the industry will benefit from contractors resuming their prominence as the industry's largest consumer group. This will be aided by steady growth in the number of construction projects in both residential and nonresidential markets.

    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 $0.23 in capital investment. Depreciation costs account for 6.0% o

    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 Value of private nonresidential construction and Value of residential construction in the Tool & Equipment Rental industry impact industry performance..

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    Industry Products

    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

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Value of private nonresidential construction
  • Value of residential construction
  • Per capita disposable income
  • Homeownership rate

  • Current Performance
  • Construction markets
  • Consumer markets
  • Operating conditions
  • Chart: Revenue Growth

  • Industry Outlook
  • Rebounding 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

  • Products & Markets
    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
  • Independent builders and contractors
  • Private households
  • Construction companies
  • Industrial companies
  • Other
  • Government
  • Chart: Major Market Segmentation for the Tool & Equipment Rental Industry

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

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

  • Industry Globalization
    Major Companies
    Sunbelt RentalsHerc Holdings Inc.
  • Table: Sunbelt Rentals - financial performance
  • Table: Herc Holdings Inc. - financial performance

  • Operating Conditions
    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
    Key Statistics
    Table: Industry Data for the Tool & Equipment Rental Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Value of Private Nonresidential Construction (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    Aerial Lifts
  • Equipment used to raise workers or materials to work sites.
  • Do-It-Yourself
  • A project in which a consumer undertakes work him or herself instead of hiring a professional contractor.
  • Nonemployer
  • An industry operator with one location and no employees (e.g. a sole proprietor).
  • Why buy this report?

    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 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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