Heavy lifting: Mining and construction sectors are expected to stabilize, driving industry growth

This industry exhibited strong performance during the first two years of the reporting period before a recession caused in part by declining commodity prices in 2015 damaged industry performance. While industry revenue has grown steadily since hitting its nadir in 2016, demand conditions are still weaker than during the years leading up to the reporting period, and overall industry revenue has been flat over the five years to 2018. Over the five years to 2023, industry revenue is forecast to climb. The price of crude oil has since recovered, although it is well below its peak, and as a result, demand from Canadian extraction markets is growing but at a far slower rate than it was in the years leading up to the reporting period...read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies

Industry Threats & Opportunities

  • Heavy equipment operators are likely to continue preferring rentals over purchases
  • The uncertainty created by the recent slowdown made renting and leasing equipment more attractive
  • The need to transport resources will boost demand for construction equipment and aid revenue
  • Industry Report - Industry Products Chapter

    Construction, agriculture, forestry and mining equipmentThe construction, mining, agricultural and forestry markets account for an estimated 44.7% of industry revenue. These industries rent or lease a variety of heavy equipment. For instance, construction markets require numerous trucks, asphalt pavers, excavators and road reclaimers. In recent years residential construction has increased, however struggling commodity prices sharply diminished activity in the mining sector, which helped lead to a decline in nonresidential construction activity as well as diminished demand from downstream oil and gas markets...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, agricultural and construction industries
  • Transport markets
  • Other industrial and utilities markets
  • Consumers
  • Government
  • 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
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • Rent, utility and marketing expenses
  • Other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Heavy Equipment Rental

  • Basis of Competition
  • Internal
  • External

  • 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 (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Value of nonresidential construction (2009-2023)

  • 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?

    The Heavy Equipment Rental market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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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