|Last Quarterly Update:||12/19/2016|
|SIC Codes:||7359, 7377|
|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 lease technology and office equipment for use in business operations. Major companies include CSI Leasing, Electro Rent, Marlin Business Services, NFS Leasing, and SmartSource Rentals (all based in the US), along with Fuyo General Lease (Japan) and Syscap (the UK). Major manufacturers such as Hewlett Packard, Canon, and Xerox also offer technology leasing services.
Worldwide PC shipments, an indicator of demand for technology and office equipment leasing, have been declining in recent years, in part because of increased reliance on tablets and smartphones and longer upgrade cycles. Major markets for technology and office equipment leasing include the US and Europe. Demand is expected to grow in the developing markets of Asia, Latin America, and Eastern Europe.
The US technology and office equipment rental and leasing industry includes more than 600 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $2.4 billion.
Demand is driven by business activity, especially in industries that rely heavily on technology. The profitability of individual companies depends on the merchandising mix and the cost of financing rental inventory. Large companies have economies of scale in buying equipment and having multiple outlets to lease the equipment. Smaller companies can compete by providing specialty products for local markets and superior customer service. The US industry is concentrated: the top 50 companies account for about 75% of revenue.
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