Companies in this industry rent and lease equipment to commercial and industrial entities for use in business operations. Major companies include US-based AMECO (owned by Fluor), Herc Rentals (formerly Hertz Equipment Rental), and United Rentals; UK-based Aggreko, Ashtead Group (owner of US-based Sunbelt Rentals), and Speedy Hire; and Japan-based Tokyo Century Leasing and Mitsubishi UFJ.
Demand is driven by business and industrial activity, particularly in nonresidential construction. The profitability of individual companies depends on the merchandising mix and cost of financing rental inventory. Large companies have economies of scale in buying equipment and having multiple outlets to share equipment. Small companies can compete effectively by providing specialty products for a local market and by offering superior customer service. The US industry is concentrated: the top 50 companies account for about 55% of revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major rental and leasing product categories are agricultural, construction, mining, and forestry equipment (25% of revenue); aircraft, steamships and tugboats, and railroad cars (20%); and medical equipment (5%). Other rental product categories include machinery; lawn and garden equipment; audio/visual, motion picture, and theatrical equipment; and office equipment and computers.