Where buying starts to make more sense is when there is a consistent and forecastable use case for the equipment. Renting can be up to three times more expensive over financing, but comes with the benefits of lower risk and commitment. Often times the decision to rent over financing or purchasing a piece of equipment will come down to a decision balanced in risk and the long term usefulness of the equipment.
It represents a low-risk way of obtaining equipment when market conditions are uncertain and allows companies to enter new markets or sectors without burdensome investments in machinery – capital that would otherwise be tied up in equipment can be channelled into a company’s core business. Rental allows companies to cope with peak workloads without having to invest in extra equipment.
By renting rather than owning, the user only pays for equipment when it is needed, and rental reduces the ongoing costs that come with equipment ownership, including maintenance, in-service inspections, repairs, transportation and storage. There are several reason why companies choose to rent equipment instead of buying it: financial and economic, operational and environmental.Įquipment rental helps companies reduce their fixed costs and minimises the financial risks of owning equipment fleets. In 2019, equipment rental companies and other companies providing rental services generated a total rental turnover of more than EUR 27.7 billion in these countries (EU-EFTA-UK), with the most recent estimates putting the number of rental companies in Europe at 17,280 and people employed in the industry at 133,480. The ERA (European Rental Association) annually publishes the ERA Market Report, based on a research carried out in 15 countries (Austria, Belgium, The Czech Republic, Denmark, Germany, Finland, France, Italy, The Netherlands, Norway, Poland, Spain, Sweden, Switzerland and the UK). Rental revenue in Canada was expected to grow 2.1 percent in 2019 to total nearly $5.5 billion North America īased on research by the ARA (American Rental Association), rental revenues in 2019 in the U.S were expected to be $55.7 billion, up 5 percent from 2018. In 2017 the Global Rental Alliance (GRA) estimated the combined rental revenue among the GRA member associations (US, Canada, Europe and UK, Japan, Australia and New Zealand) to be US$ 91.5 billion for 2015. The potential for growth is important in Southern, Central and Eastern Europe, where some countries saw a double-digit growth rate for rental in recent years.Įquipment rental market - key figures Equipment rental penetration is lower in Southern and Eastern Europe and highest in the UK and the Nordic Countries. The situation of the equipment rental industry in Europe varies from one country to another, with some markets being more mature. Concentration in the industry is expected to renew at a fast pace, following a pause in 2008–2009 as a consequence of the international credit crunch. The majority of companies in the industry still have fewer than 5 employees. Around 40 of the 100 largest equipment rental companies in the world are European. The industry has moved from mostly family-owned small businesses to the creation of a number of international groups, some of which have an annual turnover over €1billion.
In Europe alone there are over 17,000 equipment rental companies and the industry is now growing quickly in other areas of the world, including the Middle East, Latin America and Asia. Consolidation was slow in the 2000s but a buyout joined the two largest North American rental companies: United Rentals and RSC. It emerged in the UK after the First World War and has now become a multi-billion euro business providing a wide range of construction and industrial equipment for customers globally.The American Rental Association was founded as early as 1955, and the first waves of consolidation took place in the 1970s in North America, leading to the creation of companies with nationwide operations. 5.2 Location of the branch(s) or depot(s)Įquipment rental is a relatively new industry, first developed in Anglo-Saxon countries.4.6 Falsework, formwork and groundworks.4.3 Powered access, forklifts & telehandlers.3.3.1 Carbon footprint of construction equipment.2 Equipment rental market - key figures.