Rental Equipment Market Size
2015-08-14 Posted By:Infrabazaar
The Power generation and oil gas projects became the main factors for increase in rental demand of hydraulic crawler and rough terrain cranes in the year 2014. Companies that supplied machines in those segments benefited and enjoyed great growth over the past few years. Therefore the rental equipment industry enjoyed a very strong year in 2014 and is expected to break the market size records for the forecast 2016 period.
Aerial work platforms, telehandlers and compact equipment rental companies spent a lot of money refreshing and expanding their fleets especially in 2014. Traditional factors, such as residential and non-residential construction spending and employment levels improved demand as well. Therefore cash flows from the business, equipment utilization, dollar and time utilization, and higher prices contributed to a positive 2014.
Certain geographic areas due to high oil stocks and low gas prices, dramatical fall back of demand from oil and gas extraction and mining industries were observed in this year(2015). This decline was reflected in many segments of the economy from employment layoffs to reduced private construction spending for an indefinite period of time. Some industries, other than oil and gas extraction, as mentioned above, continued to be revenue drivers.
The rental equipment industry is very capital-intensive: equipment fleets and secure facilities are acquired and maintained to operate the business. In this environment the rental companies are continuing to refresh their fleets by selling off excess and old equipment, so they are prepared for the next drop. Depending on the timing, operation metrics might change, utilization rates might decline at the same time average fleet age would slowdown, but overall their operating metrics would drastically improve.