Sunbelt Rentals Competition
Now Viewing Sunbelt Rentals's competition in: Commercial and Industrial Equipment Rental (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
What industries does the company target? - Typical customers include construction companies, government agencies, and medical facilities.
What marketing strategies does the company use? - Equipment rental companies typically advertise in the Yellow Pages and trade publications; many participate in trade shows.
What are typical rental prices for the company's equipment? - Equipment rental can vary from $100 to thousands per month.
What is the average rental period? - Commercial contracts are generally for weeks or months.
How important are the company's largest customers? - While large companies rarely have a customer accounting for more than a small percentage of its revenue, small companies may rely on a few large customers.
Who is the company's largest competitor? - Companies compete with national rental chains, as well as other local competitors.
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.
Full Industry Overview For Commercial and Industrial Equipment Rental
Business Challenges
CRITICAL ISSUES
Dependence on Economic Growth - The industrial rental industry depends heavily on the growth of the US GDP, particularly nonresidential construction, which can be cyclical. Rental revenue rises and falls relative to overall economic activity. The late 2000s recession stalled nonresidential construction which led to a slowdown in the commercial rental industry. Because the industrial rental industry has high inventory acquisition costs, decreases in equipment use rates affect profitability.
Volatile Raw Material, Energy Prices - The commercial equipment rental industry is affected by price increases in raw materials and energy, which drive up prices from equipment manufacturers. Having new equipment for rental customers is important, so as equipment prices rise, costs are either absorbed by lower profits or passed on to customers. Increasing energy costs can also increase equipment transportation costs, which the rental company bears.
Industries Where Sunbelt Rentals Competes
- Industrial Manufacturing
- Industrial Equipment Leasing(primary)
