Equipment rental, also called plant hire in some countries (in the UK for instance), is a service industry providing machinery, equipment and tools of all kinds and sizes (from earthmoving to powered access, from power generation to hand-held tools etc.) for a limited period of time to final users, mainly to construction contractors but also to the industry and to individual consumers.
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History
The equipment rental industry is a relatively new industry, which first developed in Anglo-Saxon countries. The American Rental Association was founded as early as 1955, and first waves of consolidation took place as early as in the 70's in North America, leading to the creation of companies with nationwide operations.
Europe is catching up since the 80's. The industry has moved from mostly family-owned small businesses to the creation of a number of international groups, some of which have an annual turnover in excess of €1 billion. 40 of the 100 largest equipment rental companies in the world are European. The large majority of companies in the industry however still have fewer than 5 employees and concentration in the industry is expected to renew at a fast pace following a pause started in 2008-2009 as a consequence of the international credit crunch.
The situation of the equipment rental industry still varies largely from one country to another in Europe. The industry is indeed more mature in some markets than others. Equipment rentalpenetration is for example lowest in Italy and Spain and Poland and highest in the UK and Nordic Countries. The potential for growth is still important in Southern, Central and Eastern Europe, where some countries saw a double-digit growth rate for rental in recent booming years.
Growth
The main reasons for the industry's overall fast development are:
ERA
The European rental industry, through its representative association ERA, has published a manifesto for the Promotion of the sustainable Benefits of the Rental Concept. The motivation for the Manifesto comes from the 5 principles used in the rental business:
Key Figures on Equipment Rental in Europe
In 2016, the European Rental Association published the ERA Market Report, based on a research carried out in 15 countries (Austria,Belgium, The Czech republic,Denmark, Germany, Finland, France, Italy, The Netherlands, Norway, Poland,Spain, Sweden, Switzerland and the UK).
According to this study and previous research on countries not included in the study, the total size of the European equipment rental market without operator was €25 billion in 2016. In the 15 countries surveyed, 15,500 companies were active in rental in 2016 and they collectively employed 120,000 people.