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Commercial and Industrial Equipment RentalProduct Type: Market Research ReportPublished by: First Research, Inc. Published: September 2009 Product Code: R3470-3053 Description The US commercial and industrial equipment rental industry includes more than 8,000 companies with combined annual revenue of about $42 billion. Major companies include United Rentals, Sunbelt Rentals, and Hertz. The industry is concentrated: the top 50 companies account for more than half of overall revenue.COMPETITIVE LANDSCAPE Demand is driven by economic growth, 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 advantages in buying equipment and having multiple outlets to share equipment. Small companies can compete effectively by providing specialty products for a local market and superior customer service. PRODUCTS, OPERATIONS & TECHNOLOGY Major rental product categories are heavy construction equipment (26 percent of revenue); aircraft (11 percent); computers and peripheral equipment (11 percent); medical equipment (8 percent); and railroad cars (8 percent). Other rental product categories include audio/visual and motion picture and theatrical equipment. Businesses rent rather than buy equipment due to the equipment's high cost or to meet a temporary business need. Commercial rental companies typically don't operate store-front facilities and are located in industrial zones. Company sites are generally about three acres and have a storage yard for the equipment, a maintenance center, offices, and, sometimes, a showroom. Companies can stock hundreds of items or specialize in a niche and provide just a few dozen items. Companies use full service leases where they ... Table of Contents
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