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JUNE 2013 issue of
Rental Management

By the numbers
05/31/2013

First quarter revenues

Editor’s note: Several rental companies as well as manufacturers and suppliers reported first quarter 2013 financial results in late April and early May, including the following selected businesses.

Mills Estruturas e Serviços de Engenharia S.A. (Mills), Rio de Janeiro, Brazil, up 24.4 percent to $84.8 million for first quarter 2013.

Essex Rental Corp., Buffalo Grove, Ill., up 22.5 percent to $24.6 million for the first quarter of 2013.

H&E Equipment Services, Baton Rouge, La., up 22.3 percent to $212.4 million for first quarter 2013.

Hertz Equipment Rental Corp. (HERC), Park Ridge, N.J., up 16.2 percent to $351 million for first quarter 2013.

Toromont Industries, Toronto, up 11 percent to $313.3 million for first quarter 2013.

Mobile Mini, Tempe, Ariz., up 10 percent to $97.9 million for first quarter 2013.

Finning International, Vancouver, British Columbia, Canada, up 8 percent to $1.6 billion for first quarter 2013.
JLG Industries, McConnellsburg, Pa., up 7.5 percent to $817.4 million for second quarter 2013.

Manitowoc Co., Manitowoc, Wis., up 5.4 percent to $898 million for first quarter 2013.

Haulotte Group, L’Horme, France, down 5 percent to $110 million for first quarter 2013.

Terex Corp., Westport, Conn., down 11 percent to $1.72 billion for the first quarter 2013.

Cummins, Columbus, Ind., down 12 percent to $3.9 billion for first quarter 2013.

Caterpillar, Peoria, Ill., down 17 percent to $13.2 billion for the first quarter 2013.

Volvo Construction Equipment, Stockholm, Sweden, down 33 percent to $1.8 billion for first quarter 2013.


530,000

Number of visitors from more than 200 countries attending Bauma 2013, the 30th International Trade Fair for Construction Machinery, Building Material Machines, Mining Machines, Construction Vehicles and Construction Equipment held April 15-21 at the Messe Munchen exhibition center in Munich, Germany. The total attendance is a record for the trade fair, which also had 2,420 exhibitors covering record exhibition space of 570,000 sq. m.

 

1,000,000

Number of machines that have been produced by JCB in the company’s 67-year history.

The milestone was marked with the whole of the glass frontage of the World HQ at Rocester, Staffordshire, U.K., being encased in a graphic wrap marking the achievement.

The picture covers an area of more than 9,700 sq. ft. and a total of 207 windows have each been individually covered with a section of the print — evolving like a giant jigsaw puzzle over a total of 50 hours as five people pieced it together.

Behind the glass in the reception area is the actual one millionth machine, a 22-ton JS220 tracked excavator in silver.

JCB Chairman Sir Anthony Bamford said, “It’s taken JCB more than 67 years to produce its millionth machine. Incredibly, one third of those machines has been produced in the last six years. Reaching the million milestone is the result of a huge effort by the JCB team past and present and it’s an achievement everyone can be justifiably proud of. Given our continuing growth, JCB’s two millionth machine will be produced in considerably less time.”

110

 

Percentage increase in 2012 revenue for Noble Iron, Houston, to $16.2 million. In 2012, the company launched its second equipment rental and distribution CELL (centralized equipment logistics location) in Houston. Standalone adjusted EBITDA at Noble Iron’s rental and distribution operations was $2.7 million and $1.0 million at the company’s software subsidiary, Texada Software. Net losses
for 2012 were $1.8 million.

“Noble Iron remains positioned for continued success in 2013, having achieved several important milestones in 2012, the first full calendar year of Noble Iron’s operating directly in the equipment rental and distribution business and the imminent launch of Texada’s cloud-based application,” said Willie Swisher, Noble Iron’s CEO.

“With two CELLs fully operational, the Noble Iron model, leveraging its technology and development path, will further demonstrate market acceptance through demand driven pricing, customer satisfaction and shareholder value.”

$38,200,000,000

The latest forecast for 2013 total equipment rental revenue in North America, according to the latest figures from the ARA Rental Market Monitor™ updated in May. This figure represents a 6.7 percent increase in North America over 2012 with revenue growth reaching 7.2 percent in the fourth quarter.

According to the ARA Rental Market Monitor North American Economic Analysis provided by IHS Global Insight, growth is projected to accelerate in all segments through 2015. The general tool segment will show the highest compound annual growth rate (CAGR) at 9.8 percent over the five-year forecast while construction and industrial equipment revenue is forecast to see a CAGR of 7.6 percent between 2013 and 2017.

In the U.S., the construction market and consumer spending is expected to be the most important drivers of growth of the equipment rental market in 2013. “The U.S. equipment rental market is expected to continue its upward trajectory and show strong growth through 2017. Strong growth in real residential construction through 2015 will fuel the construction and industrial equipment segment,
which is projected to grow 9.8 percent in 2014 and 11.8 percent in 2015,” according to the U.S. economic analysis from the ARA Rental Market Monitor.


92

 

Percentage of American Rental Association (ARA) member rental stores owners and managers responding to the April 2013 ARA Economic Survey who expect rental revenue to at least equal 2012. Nearly 80 percent expect an increase in rental revenue and more than 40 percent expect double-digit revenue growth.

The survey results show the enthusiasm and optimism ARA members brought to The Rental Show 2013 in Las Vegas has carried forward with continued optimism for additional growth in 2013.

The anticipated increase in rental revenue translates into positive purchasing expectations. Overall, nearly 85 percent of the respondents expect to buy at least as much new rental equipment as they did in 2012. In addition, 64 percent expect equipment purchases in 2013 to increase over 2012, with more than 36 percent expecting double-digit growth in equipment purchases.

In a separate survey for ARA associate members, also conducted in April 2013, 83 percent of respondents said they expect increased sales into the rental channel in 2013 over 2012 with more than 58 percent forecasting double-digit growth. Overall, 93 percent of those responding to the survey expect sales into the rental market to at least equal 2012.

The ARA economic surveys reflect a snapshot in time of those who responded and may not be representative of the industry as a whole. However, rental companies and suppliers/manufacturers can benchmark their businesses against these results.

— Sarah Peterson

 

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