Herc Rentals, Sunbelt, & United Rentals Competition
Former Branch Manager at HERC Rentals
inpractise.com/articles/herc-sunbelt-united-rentals-what-drives-the-dominance-of-the-big-three
Former Branch Manager at HERC Rentals
The expert has more than 30 years of experience in the equipment rental industry. He was the former Chief Operating Officer at a US equipment rental company, where he was an integral part of the company growth, expansion, development and implementation of a rate optimization program, and eventually the sale of the company to a competitor. He spent time at the acquiring company, where he went on to serve as Region Vice President for more than a year. The expert has a wide range of financial, operational, sales and fleet experience, as well as related due diligence and evaluation activities.
Interview Transcript
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My first topic is about understanding the variations in return based on the type of equipment and customer. I've seen different data points on these topics, but I'm curious to hear your breakdown. The goal of this line of questioning is to understand the extent to which differences in mix can drive different profiles in terms of return on investment for various companies. How important is the mix of customer type and equipment in driving those financial returns? That's the context, and I'll let you take it from there. I can follow up with specific questions afterward.
The revenue generated depends on the rental rates we're getting from the customer base or the customer mix, as not everyone pays the same rate. There can be a variation in rates, with some moving as high as 20%, but generally, the rate band is closer to 10% or 12% from top to bottom.
This is a snippet of the transcript, sign up to read more.
My first topic is about understanding the variations in return based on the type of equipment and customer. I've seen different data points on these topics, but I'm curious to hear your breakdown. The goal of this line of questioning is to understand the extent to which differences in mix can drive different profiles in terms of return on investment for various companies. How important is the mix of customer type and equipment in driving those financial returns? That's the context, and I'll let you take it from there. I can follow up with specific questions afterward.
The penetration rate for rental versus ownership is about 95% for these items, both in the United States and worldwide. Most of this equipment is sold to the rental chain and then rented back to the customer, rather than being bought new like a car. Customers usually rent these categories of equipment instead of buying them.
This is a snippet of the transcript, sign up to read more.
My first topic is about understanding the variations in return based on the type of equipment and customer. I've seen different data points on these topics, but I'm curious to hear your breakdown. The goal of this line of questioning is to understand the extent to which differences in mix can drive different profiles in terms of return on investment for various companies. How important is the mix of customer type and equipment in driving those financial returns? That's the context, and I'll let you take it from there. I can follow up with specific questions afterward.
The industry in the United States and Canada is expected to reach over $60 billion in total volume for 2022 and continue to grow in 2023.
This is a snippet of the transcript, sign up to read more.
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