For all of the things that Americans own, it is sometimes surprising that they are often in need of even more than what they have. Short term projects like outside painting projects lead to scaffolding rentals; acquiring a second or third full size refrigerator freezer requires renting an appliance dolly; hosting a wedding reception includes renting tables, chairs, tents, and fountains.
with all of these needs, it should not come as any surprise that reported rental revenue has grown at more than three times the rate of the general economy, according to statistics provided by the American Rental Association (ARA). In fact, according to the ARA, America’s total investment in the rental market was projected to reach $12.1 billion in the year 2014 and to grow to $14.3 billion in the year 2015. It seems that even though we are a society with houses and storage units full of belongings, we often still need to rent many things that we do not have.
The Construction Industry Accounts for Much of the Rental Income in America
Since 2013, the majority of new construction equipment that has been manufactured has made its way onto rental lots instead of to private owners. In fact, 51% of the construction equipment currently manufactured is managed and maintained by rental agencies instead of private construction companies and road crews. One reason for the majority of this equipment being purchased by rental agencies is simple: maintenance. the safety of every piece of construction equipment depends upon safety. Large scaffolding rentals that can be returned to an indoor warehouse for safe keeping until they are used again suffers less wear and tear than ladder scaffolding that has to sit outside at a construction companies fenced in lot.
Using scaffolding rentals as an example again, this is equipment that is never used by even the largest firms on a daily basis. It is used for painting large buildings, for example, but is often unneeded during many other parts of a job. For many companies, paying fees for a few days of scaffolding rental is far less expensive than having to purchase that same equipment.
Heavy pieces of machinery are also rented by many road companies. Some companies, for example, rent scissor lifts for projects requiring high elevation work in a variety of spaces. Installing all of the outdoor lighting on a new building, for example, is a difficult but short term job. Another example of a piece of construction equipment that is valuable but not used often is floor lifting rentals. Again, construction companies have to weigh the difference between a large financial investment or a much smaller rental fee. the guiding principle that many construction companies follow is if a piece of equipment more than 60 to 70% of the time, you should consider renting. And since construction equipment can be rented for any length of time, companies only need to pay for the amount of time that they need the equipment, whether it be a single day or an entire year.
Event Rentals Also Create a Significant Amount of Revenue
Although scaffolding rentals and other construction equipment creates much of the rental industry revenue, event rental revenue is also significant. Tent rental equipment, tables, chairs, and group seating options are significant during various times of the year. Although event rental is fairly consistent every month, high school and college graduations in the spring as well as weddings in the summer are especially busy times.
The latest research indicates that as much as 35% of weddings are outdoor affairs. And these events typically require tent, table, and chair rentals. Available in a variety of styles and colors, event rental options allow party planners to rent, instead of buy, a majority of the equipment and supplies that they need.
Most rental places also offer the additional option of paying for set up and tear down services. Outdoor party rental choices have expanded in the last few years. While ordering party rental choices in the past may have simply required specifics about how many chairs and tables you wanted, the information about quantity is only the beginning for many rental contracts.