Rental & Leasing
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, Avis Budget Group, Hertz Global Holdings, U-Haul, and United Rentals (all based in the US) along with AerCap (the Netherlands), Ashtead Group (UK), LeasePlan (the Netherlands), Sixt (Germany), and Tokyo Century Leasing (Japan).
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 54,000 establishments (single-location companies or units of multi-location companies) that rent and lease physical assets; combined annual revenue for those establishments is about $162 billion. About 2,500 US establishments with combined annual revenue of about $42 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 that rent and lease physical assets account for about 60% of revenue for the segment. The 50 largest lessors of nonfinancial intangible assets account for about 75% of revenue for that segment.
Products, Operations & Technology
Major sources of revenue for companies that rent and lease physical assets include passenger cars and light trucks (about 24% of sales for the industry
Sales & Marketing
Finance & Regulation
Regional & International Issues
Also includes the following chapters:
Quarterly Industry Update
Trends and Opportunities
Call Preparation Questions
Glossary of Acronyms