5 Biggest Companies in The Construction Equipment Rental Industry

The 5 biggest companies in the construction equipment rental industry supply tools, equipment, machinery and vehicles of all sizes for rent to construction contractors and industrial users, as well as DIY customers. With an ever-increasing population, demand for the construction of new buildings and homes never ceases, so the equipment rental industry is one that should remain resilient for years and decades to come.

Indeed, the overall equipment rental market will only continue to grow, as is evident from the optimistic forecasts being made by industry experts. The North American rental industry is expected to remain solid, with IHS Markit forecasting CAGR of 4% from 2017 through 2021. The new five-year forecast for the equipment rental industry’s revenues, released by the American Rental Association, also confirms steady gains. U.S. equipment rental revenue is estimated to reach about $49 billion in 2017 and $56 billion by 2020. It is estimated that the North American equipment rental industry’s revenue grew by 4% year-over-year in 2016.

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There are a number of benefits to renting construction equipment instead of buying it. The rental industry is gaining momentum because of several inherent advantages that it has, like controlled expenses and inventory, better risk management, saving on storage and maintenance, reduced downtime, and capital conservation. The five companies on our list will continue to experience solid demand for their equipment rental services going forward, driven by increasing consumer spending. Strength in residential, commercial and industrial construction is further expected to fuel growth, with the residential segment expected to stay strong over the coming years.

Over the next few pages, we’ll rank the 5 biggest companies in the construction equipment rental industry. We have collated data from sources like International Rental News and Rental Equipment Register and have ranked the companies based on their full fleet value.

5. Home Depot Inc. (NYSE:HD)

Home Depot Inc. (NYSE:HD), the largest home improvement retailer in the U.S, opened tool rental centers within its chain stores in the 1990s. Today the rental business has grown into a vast segment of Home Depot Inc. (NYSE:HD)’s business, which is be classified into two segments – Truck rental and Tool repair. Apart from tools rental, they also offer equipment rentals, all for general construction purposes. The company provides a wide range of professional-quality tools and equipment for rent, including concrete and demolition tools, generators, moving and lifting equipment, and power tools at competitive prices. Home Depot Inc. (NYSE:HD)’s rental business definitely benefits from its huge customer base and vast geographic footprint. Customers can rent equipment from over 1,000 Home Depot Inc. (NYSE:HD) locations at hourly, daily, weekly, and monthly rates. Home Depot Inc. (NYSE:HD) does not specify its rental revenue, however its tool rentals are growing strong each year. And now, let’s see what else we have on our list of biggest companies in the construction equipment rental industry.

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4. BlueLine Rental

Full Fleet Value – $1.4 billion

BlueLine Rental (formerly known as Volvo Construction Equipment Rents, LLC), the number 4 on our list of biggest companies in the construction equipment rental industry is one of the nation’s fastest growing equipment rental companies. The company provides an extensive range of equipment for rent like aerial (38% of total portfolio), dirt & compaction (30%), material handling equipment (23%), and light towers and more (9%) through its 140 branches. Headquartered in Woodlands, Texas, the company has built a strong network, comprehensive fleet and dedicated employees over its 16 years of existence. BlueLine Rentals rents construction equipment to the construction, commercial, and industrial markets as well as retail consumers through its network of company-owned stores in North America. The company has gone through a major transformation since the appointment of its new CEO Asterios Satrazemis last year, who came with extensive experience in the industry. Since his appointment, Satrazemis has introduced many new initiatives and also cut back certain ineffective programs and systems.

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3. Hertz Global Holdings Inc (NYSE:HRI)

Full Fleet Value – $3.6 billion

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2. Sunbelt Rentals, Inc.

Full Fleet Value – $5 billion

The second place on our list of biggest companies in the construction equipment rental industry goes to Sunbelt Rentals, Inc. that is a private equipment rental company based in the U.S, accounting for 6% of the country’s equipment rental market. It is a subsidiary of UK-based Ashtead plc. The company’s extensive fleet exceeds $5 billion in value and it specializes in industrial machinery, construction equipment, vehicles, pumps, aerial platforms, and power generators and tools. It has a presence in about 40 states and operates 600 rental locations across the United States, serving industries, commercial, residential and municipal customers. The company reported 19.5% growth in its revenue for its fiscal 2016, which rose to $3.28 billion. Sunbelt Rentals, Inc. is focusing on acquisitions and is expanding its geographic footprint and markets. The company acquired four branches of BlueLine Rentals in New Mexico and Texas last year, in addition to Noble Iron’s Los Angeles-based equipment rental operations in March of this year.

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1. United Rentals, Inc. (NYSE:URI)

Full Fleet Value – $9 billion

United Rentals, Inc. (NYSE:URI) is the largest equipment rental company in the world. The company has been in business for the last two decades and accounts for 11% of the total U.S market. United Rentals, Inc. (NYSE:URI) has a presence in more than 968 locations across North America (in 49 U.S states and every Canadian province) and caters to a diversified mix of industrial (52%), non-residential (44%) and residential (4%) customers. With years of experience, the company has added to its key accounts, which now account for 71% of its total revenue.

United Rentals operates through two segments: General Rental and Specialty (trench, power and pump), and maintains a large and diversified fleet of tools and equipment. The company offers approximately 3,200 classes of rental equipment on an hourly, daily, weekly or monthly basis, including construction, aerial and industrial equipment, trench shields, aluminum hydraulic shoring systems, diesel generators, electrical distribution equipment, and much more. The company is also expanding organically through acquisitions, having recently acquired both the #2 North American rental company, RSC Equipment Rental, as well as National Pump, the #1 pure pump rental company in North America. Equipment rental revenue accounted for 86% of United Rentals, Inc. (NYSE:URI)’s total revenue of $5.8 billion in 2016, which is why United Rentals tops our list of the 5 biggest companies in the construction equipment rental industry.

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Disclosure: None