Tuesday, September 7, 2021
As an entrepreneur in the software industry creating outsourced management solutions for the small business sector, Ron can speak from extensive first-hand experience and has a deep understanding of the hire & Rental industry. He has listened and collaborated with industry professionals and constantly redesigned and developed the CloudRent product to meet customer and industry requirements. This led to the development of the core infrastructure that has been sold to Hire & Rental business’s in 25+ countries over the past 14 years.
Worldwide government lockdown mandates and changes in consumer purchasing patterns halted construction jobs, and therefore, impacted the construction inventory rental industry as well. Luckily, the trends for construction inventory rental are on the upwards rise in 2021. As people all across the country return to creating, developing, and building, the construction inventory rental industry is experiencing rapid growth.
The global construction inventory rental industry was calculated to be around $88 billion USD in 2020. Comparatively, the global market is expected to surpass $95 billion in 2021. And it’s not stopping there. According to Market Research Future (MPFR), the growth of the market is expected to exponentially increase until 2027. This rate of economic growth is a positive sign for the construction inventory rental industry and promises more exciting growth to come.
There are a variety of factors that experts believe have contributed to the positive trend in the construction rental industry, in both 2021 and beyond. Firstly, the increase in the overall construction industry creates a need for the use of a greater number of construction tools. As construction firms have rapidly increased in size and scope, so has the need for equipment provided by rental companies. That need is then met by rental construction equipment, which increases safety, productivity, and saves in cost. By utilizing rental equipment, companies can increase return on investment at a higher —and faster— rate.
Innovation in the services that construction inventory rental companies offer might also attribute to some of the growth seen in the overall industry. As the construction rental industry includes various benefits, such as using updated tools, reduced fees, no maintenance costs, and lowered transport costs, using rental construction equipment is increasingly popular. The ease of use and overall affordability makes renting more appealing than owning to many companies.
All across the world, mining and construction industries are increasing, explaining some of the growth seen in the construction inventory rental industry in 2021. The earthmoving segment in particular (construction involves tools such as excavators and loaders, among others) is booming and generating income for the rental industry. Other profitable sectors for rental companies including government projects. As construction work in these sectors grows, so do the profits for the construction inventory rental industry.
The increase in construction jobs following the loosening of Covid-19 government mandates, as well as buyer trends, has overall positively affected the construction inventory rental industry in 2021. However, the increase in growth is not expected to end this year, but rather extend for years to come. Above all, the construction inventory rental industry has bounced back following the pandemic slump and shown remarkable health.
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