Development drives the heavy equipment rental industry. Whether digging foundations for high-rise apartment buildings, clearing land for shopping centers, trenching to install utility infrastructures or finishing the interior of an office building, more than half of all phases of construction use rented equipment.
Rental industry projections indicate that equipment rentals are a growing business. Construction and rental equipment revenue is projected to grow by 3.7 percent in 2017 and 4.2 percent in 2018, 5 percent in 2019 and 4.2 percent in 2020.
With the new federal government leadership’s plans to support increased investment in infrastructure – mainly roads and bridges; an energy policy that supports increased drilling of oil and natural gas; and business-friendly regulations and tax incentives may drive further rental industry growth in 2018 and in future years.
Contractors and industries rent equipment for several financial reasons:
· It frees up capital, controls costs, and provides access to the right equipment for a project.
· Additional staff is not required to maintain and transport the equipment, nor are additional spare parts or storage area needed.
· Rental customers rely on rental companies to deliver, service and support the equipment, and pay only when it is used.
Rental industry growth is tied to the construction and business sectors that support it, mainly home construction, non-residential construction and industrial operations, which are affected by factors such as interest rates, material costs, land costs, vacancy rates and business growth.
Economists see office construction in cities continuing the growth trend experienced during the past two years.
The warehouse, storage warehouse and distribution centers construction sector is projected to continue growing in 2017 due to e-commerce demand by consumers and businesses.
Colleges and universities are continuing to expand, particularly in the areas of research buildings and dormitories. The overflow of students that are not living in dorms will also drive off-campus student housing for the next year.
Hospital and health care facilities construction showed slight growth during the past four years while the Affordable Care Act was implemented and hospital chains and facilities were merged, and are expected to continue that trend over the next several years.
Neff Rental delivers rental equipment to infrastructure developers, residential builders, non-residential contractors, oil and gas drilling operations and other businesses. More than half of the company’s fleet is earthmoving and is used to prepare land for construction, such as clearing and contouring, digging foundations and opening trenches for utilities. Material handling equipment is used to move building supplies around job sites, and aerial equipment is typically used to finish jobs.
For more information about Neff Rental and the equipment that it rents to serve residential, commercial and industrial markets, visit www.NeffRental.com, or call 888-709-NEFF.
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