Brand Energy Competition
Now Viewing Brand Energy's competition in: Commercial and Industrial Equipment Rental
Recent Developments
Aircraft Leasing Interest Increases - Interest in aircraft leasing is rising due to the prolonged US economic downturn, according to industry experts. In response, rental companies are reportedly buying new aircraft to lease; International Lease Finance plans to buy 300 new aircraft to fill rising customer demand. Experts also say that manufacturers such as Boeing and Airbus have confirmed that some airlines are backing down from plans to buy aircraft.
Industry Growing, Despite Economic Challenges - The sour US economy, which is negatively impacting industries, hasn't slowed growth in commercial and industrial equipment rental. According to the Equipment Leasing and Finance Association's (ELFA) Monthly Leasing and Finance Index, April and May saw significant increases in new business, which was up 6.5 percent in May 2008 compared to May 2007, and 16 percent in April 2008 compared to April 2007. The reports indicate that equipment financing is a bright spot, despite credit problems in the broader economy.
Demand Drives Fuel Innovation - According to Crown Equipment Corporation, customers want battery-powered and fuel cell forklifts. To the extent that commercial and industrial equipment rental companies are seeing increased demand for this and other fuel-saving devices, some companies are working on producing them. Crown is developing a fuel cell-powered fork lift in partnership with the state of Ohio. Rental companies whose customers are demanding fuel-saving equipment should soon benefit.
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. Average revenue per worker is about $230,000.
Full Industry Overview For Commercial and Industrial Equipment Rental
Commercial and Industrial Equipment Rental Industry Forecast
from Hoover's/D&B subsidiary First Research
The output of US machinery and equipment rental and leasing is forecast to grow at an annual compounded rate of 4 percent between 2007 and 2012.
Equipment Rental Services Growth Even
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.
First Research Opportunity Rating
The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.
- Demand: Tied to industrial production
- Need low-cost financing
- Risk: Slowing economy cuts volume
Industries Where Brand Energy Competes
- Environmental Services & Equipment
- Remediation & Environmental Cleanup Services
- Industrial Manufacturing
- Construction, Mining & Other Heavy Equipment Manufacturing
- Industrial Equipment Leasing
- Industrial Machinery & Equipment Distribution
