Key Takeaways
- Rental companies are optimistic about the near-term outlook, driven by strong demand from both residential and non-residential construction sectors.
- With higher utilization rates and increased customer demand, many rental firms are boosting their fleet investments.
- Some equipment manufacturers are facing production delays due to component shortages, which may slow the addition of new machines to rental fleets.
- Most industry players expect these positive trends to continue in the coming months.
The fundamentals for equipment rental companies are improving as demand from both residential and non-residential construction rebounds post-pandemic. Rental rates and equipment utilization are on an upward trend, signaling a need for more capital investment in fleets. However, some manufacturers are struggling with supply chain issues, which could affect equipment deliveries in the second half of 2021.
Looking ahead, the rental sector is seeing strong momentum across key markets. Companies like Alta Equipment, United Rentals, Herc Rentals, and Ashtead (Sunbelt Rentals) are all reporting improved performance and are confident in the continued growth trajectory.
Company Outlooks
| Company | Outlook | Date |
| Alta Equipment | Positive | 8/12/2021 |
| United Rentals | Positive | 7/28/2021 |
| Herc Rentals | Positive | 7/22/2021 |
| Ashtead | Neutral | 6/15/2021 |
Alta Equipment
“Our second quarter performance reflects a strong operating environment across our material handling and construction markets. The constrained supply chain affecting our manufacturing partners has led to higher demand for our premium product support offerings and greater rental utilization. Tightened supply has also pushed up equipment pricing across the industry, creating unique opportunities to strategically sell our rental fleet, meet customer demand, and achieve field population targets typically reserved for new equipment installations,†said Ryan Greenawalt, CEO of Alta Equipment.
“The strength of our first-half results, along with a record backlog in our Construction and Material Handling businesses, positions us well to meet our full-year growth goals.â€
“Customer demand increased each month during the second quarter, while new equipment supply constraints persisted and delivery lead times extended. The supply-demand imbalance is also driving price appreciation for both new and used equipment, and we’re seeing increased rental rates.â€
View all Alta Equipment locations
United Rentals
“Our results reflect a continued recovery across our construction and industrial markets. Looking forward, we remain encouraged by the gains we’ve seen in end-market indicators, including our customers’ sentiment and project visibility. We are raising our guidance to reflect the expected contribution from our recent acquisitions, as well as accelerated momentum in our underlying business,†said Matthew Flannery, CEO of United Rentals.
“Our operating environment continues to recover. Our customers are increasingly optimistic about their prospects.â€
“Customer optimism is a great barometer, and the trend we see in the field supports their view. 2021 is a pivotal year for us. It confirms our return to growth, including 19% rental revenue growth in the second quarter. I’ll point to some of the drivers of that growth, starting with geography. The rebound in our end markets continues to be broadly positive, with all geographic regions reporting year-over-year growth in rental revenue.â€
“We are also seeing project starts in power, transit, and technology. The recovery has taken root across geographies and verticals on both coasts, with solid activity in heavy manufacturing, corporate campuses, schools, and transmission lines.â€
View all United Rentals locations
Herc Rentals
“Our second quarter performance provides momentum for the rest of 2021,†said Larry Silber, President and CEO. “Tight supply of new equipment and steady demand from key markets have created a positive operating environment. Second quarter total revenues rose 33%, and adjusted EBITDA increased 39% compared to last year. Adjusted EBITDA margin expanded 170 basis points year-over-year to 42.3%, reflecting solid overall performance and strong growth in our specialty businesses.â€
“Our strong free cash flow supports our fleet investments, greenfield expansion, and M&A activity. We are excited to carry this momentum into the remainder of 2021, which looks like it will be a record year for Herc Rentals in terms of revenue and net income.â€
“Given the current operating environment, we’ve decided to invest an additional fleet before the end of the year and have raised our 2021 net fleet capital expenditure guidance to $550 million. Our year-to-date momentum is expected to drive another year of record performance.â€
“The tight equipment supply and steady demand have supported our focus on pricing. Our team continues to deliver rate increases, and we believe we are leading the market thanks to our excellent pricing tools and the professionalism of our sales team.â€
“We are clearly in the early stages of the next construction cycle, with steady demand even before any potential boost from future infrastructure spending. Equipment suppliers are struggling with global supply chain bottlenecks, making it difficult for OEMs to manufacture and deliver new equipment.â€
“There is plenty of demand across most of our end markets to support growth through the rest of 2021 and into 2022.â€
View all Herc Rentals locations
Ashtead (Sunbelt Rentals)
“The current activity levels we're experiencing align with the positive Dodge momentum index, which is at its highest level since 2007, and the strong ABI figures. Importantly, we can say the same for our business and non-construction segments, such as MRO, emergency response, and the early return to live events. There seems to be an abundance of momentum in the markets,†said Brendan Horgan, CEO of Ashtead Group.
“Residential construction, which has been a positive surprise throughout the year, is showing no signs of slowing down.â€
“Our usual and extensive fleet planning exercise carried out last fall and early winter proved more important this year, as OEMs work through supply chain and workforce challenges while ramping up production.â€
View all Sunbelt Rentals locations
Find Similar Articles By Topic
#United Rentals #Sunbelt Rentals #Alta Equipment #Herc Rentals #Equipment Rental #Earnings Summary
Integration with other Equipment: Conveyor systems are often integrated with other packaging equipment, such as filling machines, sealing machines, labeling machines, or automated packaging systems. This seamless integration enables a continuous and automated operation, maximizing efficiency and reducing manual intervention.
Automatic Coding and Tracking: Conveyor systems can enable automatic coding or marking of products as they pass through the packaging line. This allows for the application of barcodes, batch or serial numbers, expiration dates, or other tracking information, facilitating inventory management and traceability.
Space Optimization: Conveyor systems are designed to optimize the available space on the packaging line. They can be customized to fit specific layouts or accommodate different types of packaging requirements, ensuring efficient use of floor space and maximizing production capacity.
By incorporating conveyor systems into packaging lines, manufacturers can streamline their operations, reduce manual labor, enhance productivity and efficiency, improve product quality, and ultimately meet the demands of a rapidly evolving packaging industry.
Conveyor,Conveyor System,Conveyor for Packaging Line,Conveyor Equipment
SUZHOU SHENGBAIWEI PACKAGING EQUIPMENT CO.,LTD , https://www.sbwpack.com