|Last Quarterly Update:||1/9/2017|
|SIC Codes:||4499, 4741, 6792, 6794, 7352, 7353, 7359, 7377, 7513, 7514, 7515, 7519, 7841|
|NAICS Codes:||532, 533|
|Industry Overview||Trends & Challenges||Industry Forecast|
|Quarterly Industry Update||Call Prep Questions||Website & Media Links|
|Business Challenges||Financial Information||Glossary & Acronyms|
Companies in this industry rent and lease a wide range of physical assets, including cars and trucks, consumer goods, and commercial and industrial machinery and equipment, as well as nonfinancial intangible assets. Major companies include Aaron's, Netflix, Rent-A-Center, Avis Budget Group, Hertz, U-Haul, United Rentals (all based in the US) along with Ashtead Group (UK), AerCap (Netherlands), Century Tokyo Leasing (Japan), Fuyo General Lease (Japan), and LeasePlan (Netherlands).
The global rental and leasing industry has focused on emerging countries for expansion projects. China is an important market for car and construction equipment rentals because of the growth of disposable income for the middle class and increased building activity. Other emerging markets include the Middle East, Brazil, and Eastern Europe.
The US industry includes about 53,000 establishments (single-location companies or units of multi-location companies) that rent and lease physical assets; combined annual revenue for those establishments is about $143 billion. About 2,500 US establishments with combined annual revenue of about $33 billion lease nonfinancial intangible assets (except copyrighted works).
Demand is driven by personal income and industrial activity. The profitability of individual companies depends on maintaining the right merchandise mix and controlling inventory financing costs. Large companies have economies of scale in purchasing, distribution, and advertising. Small companies compete effectively by providing superior customer service, alternative products, and catering to local demographics.
The US industry is concentrated: the 50 largest companies ...
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