Equipment rental, also known as plant hire in some countries, is a rapidly growing industry that provides a variety of machinery, equipment, and tools for short-term periods to individuals, industry, and construction contractors at competitive rates. The rental market is constantly evolving and has grown increasingly popular in recent years, thanks to its cost-efficient and flexible solutions. The industry has grown at a fast pace in Asia, Europe, and North America, with a majority of equipment rental companies having an annual turnover of over $1 billion.
The rental industry first developed in Anglo-Saxon countries and has since expanded globally. The American Rental Association was founded in 1955, and this led to the creation of several companies with nationwide operations in North America in the 1970s. Consolidation was slow in the 2000s, but things picked up again, with a significant buyout joining the two biggest North American rental companies, United Rentals and RSC.
In Europe, the rental industry started catching up a little later, from the 80s onwards. Initially, most companies in the rental market were small, family-owned businesses. However, things have changed rapidly, with the creation of several international groups in the sector, which have an annual turnover of close to $1 billion. Today, 40 of the 100 biggest equipment rental companies in the world are European, and this number continues to grow.
Despite these significant numbers, the overwhelming majority of rental companies in the industry still have fewer than 5 employees. However, given the current trend towards consolidation, many anticipate a sudden growth spurt in the sector, revitalizing the industry and generating higher competition.
The growth potential in the equipment rental industry is still enormous, especially in Eastern, Central, and Southern Europe. In recent years, rental growth rates have been recorded in double digits in some countries in these regions. For instance, countries like Italy, Poland, and Spain have seen the lowest rates of equipment rental penetration, while the Nordic countries and the UK have shown the highest growth rates.
The situation in the European rental industry varies from one country to another, and it is a relatively new area to commercially explore. However, with investment in the right equipment, product innovation, and modernization of the whole renting process using technology, the industry is expected to continue growing exponentially in the near future.
Well Drilling Equipment Rental – A Potential Winner
The equipment rental industry serves a variety of sectors. One particular area that has significant growth potential is the rental of well drilling equipment. Efficient drilling equipment can be costly to purchase, so many contractors prefer to rent their equipment on a short-term basis. The drilling process has evolved, and the drilling equipment has also undergone significant advancements in terms of accuracy, efficiency, and speed. In recent years, the use of computer-controlled drilling rigs has increased, boosting the level of accuracy and reducing drilling time. Renting these cutting-edge pieces of equipment can help contractors achieve faster drilling time, increased accuracy, and significantly reduced drilling costs.
Well drilling equipment rental has enormous growth potential, especially in regions with the potential for oil and gas exploration, mineral exploration, and geothermal drilling. By renting well drilling equipment, contractors and explorers can avoid the high costs associated with purchasing, operating, and maintaining their equipment. This makes it an attractive business strategy for start-ups or smaller businesses with limited financial resources, looking to penetrate these sectors.
Conclusion
Equipment rental is a rapidly growing industry that has gained popularity thanks to its cost-effective and flexible solutions. The industry has shown impressive growth in Europe, North America, and Asia, and there are no signs of it slowing down anytime soon. With the advent of modern technology, the rental of specialized equipment, such as well drilling equipment, has become even more accessible to businesses that may traditionally have found it out of their reach. As a result, the industry has opened up new horizons and provided massive opportunities for businesses that operate in sectors that require such specialized machinery.