Heavy lifting: A preference for renting instead of purchasing by downstream markets will benefit the industry

The Heavy Equipment Rental industry in Canada consists of operators that rent or lease heavy machinery to clients primarily in downstream construction, transportation, mining, forestry and agricultural markets. The industry exhibited strong performance during the previous period and the beginning of the reporting period before a recession caused in part by declining commodity prices early in the period damaged industry performance and profit. Canada's economy began the current period performing well, with an expanding commodities sector. This prompted growth in nonresidential construction briefly, as infrastructure development was needed to connect commodities with markets, while residential construction was driven by government incentives and low interest rates...read more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies

Industry Threats & Opportunities

  • Rising consumer spending prompted international travel and increased demand for goods, boosting rentals of equipment
  • Industrial activity was fairly weak over the past five years
  • The industry is anticipated to experience slow but steady recovery
  • Industry Report - Industry Analysis Chapter

    Industry operators rent or lease heavy construction, transportation, mining, forestry and commercial equipment such as earthmovers, aircraft and drills to a variety of industries. As a result, demand for industry products largely depends on activity in downstream industries, including transportation and logistics, utilities, heavy construction and natural resource extraction. The Heavy Equipment Rental industry in Canada experienced strong growth in the years leading up to the reporting period due to rising commodity prices that prompted increased activity from a variety of key downstream markets, increasing demand for industry goods from these markets and for ancillary transport services. How...purchase to read more.

    Additional Insights for the Heavy Equipment Rental Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Heavy Equipment Rental Industry are

  • Ability to alter goods and services produced in favour of market conditions
  • Access to the latest available and most efficient technology and techniques
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as Industrial capacity utilization and Demand from oil and gas extraction in the Heavy Equipment Rental industry impact industry performance..

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    What's in this report

    What is the Heavy Equipment Rental Industry?

    This industry rents or leases heavy construction equipment, off-highway transportation, mining and forestry machinery and equipment without operators. Companies in this industry may rent or lease products including aircraft, railcars, steamships, tugboats, bulldozers, earthmoving equipment, cranes or well-drilling machinery and equipment.

    Industry Products
  • Construction, mining, agricultural and forestry equipment
  • Transport equipment
  • Other industrial equipment
  • Industry Activities
  • Aircraft rental or leasing
  • Barge rental or leasing
  • Boat, ship and steamship rental or leasing
  • Railcar rental or leasing
  • Tanker rental or leasing
  • Towboat and tugboat rental or leasing
  • Forestry and logging machinery and equipment rental or leasing
  • Heavy construction equipment rental
  • Mining machinery and equipment rental or leasing
  • Oil field machinery and equipment rental or leasing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Industrial capacity utilization
  • Demand from oil and gas extraction
  • Value of nonresidential construction
  • Value of residential construction
  • Demand from mining (except oil and gas)

  • Current Performance
  • Demand volatility
  • Profit and consolidation
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand grows, but at a slower pace
  • Industry structure
  • Table: Heavy Equipment Rental Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Heavy Equipment Rental Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Mining In Canada
  • Construction In Canada
  • Transportation and Warehousing In Canada

  • Key Selling Industries
  • Aircraft, Engine & Parts Manufacturing in Canada
  • Boat Building in Canada
  • Construction Machinery Manufacturing in Canada
  • Mining, Oil & Gas Machinery Manufacturing in Canada
  • Ship Building in Canada
  • Train, Subway & Transit Car Manufacturing in Canada

  • Products & Services
  • Construction, mining, agricultural and forestry equipment
  • Transport equipment
  • Other industrial equipment
  • Chart: Heavy Equipment Rental Industry Products and Services Segmentation

  • Demand Determinants
  • Construction sector
  • Mining sector
  • Commercial, industrial and transportation sectors
  • Advantages of renting and leasing

  • Major Markets
  • Extraction, forestry and construction industries
  • Transportation industries
  • Other markets
  • Government
  • Consumers
  • Chart: Major Market Segmentation for the Heavy Equipment Rental Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchasesDepreciationMarketingRentUtilitiesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Heavy Equipment Rental

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Heavy Equipment Rental Industry

  • Industry Globalization
    United Rentals Inc.,
  • Table: United Rentals Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Heavy Equipment Rental Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Heavy Equipment Rental Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Marketing (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)
  • Value of nonresidential construction (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Equipment Utilization Rate
  • The share of a company's equipment that is rented out.
  • Finance Lease
  • A type of lease in which the lessee has use of the asset throughout most of its economic life and beyond. A nominal residual payment is common at the end of the lease term to assume ownership.
  • Operating Lease
  • A type of lease in which the lessee only uses the asset for some of the asset's life.
  • Whole-Of-Life Costing System
  • A system designed to minimize costs and assist owners with procurement and maintenance decisions throughout the life of an asset.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Heavy Equipment Rental market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Heavy Equipment Rental:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Heavy Equipment Rental market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Heavy Equipment Rental, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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