In the year 2013, the heavy construction company has faced a very low sales market. The experts forecast that this trend will continue in the recent year as well. The highest authority in the forecast industry of the United States of America, the IHS Global Insight company has analysed the global economic tradition and has come to the conclusion that since the global market has faced an economic downfall, the sales market of the heavy construction company will continue to face a bad fortune; but this will make the rental market of the heavy construction company a big business.
Why does the rental industry for heavy construction equipment grow so rapidly?
There have been two major reasons that have been instrumental in making the rental industry for the heavy construction equipment grow so rapidly. They are:
- As there has been a constant demand of the heavy construction equipment, the construction companies look for the equipment through various sources. The heavy construction equipment costs a lot due to the facilities and mechanism that it provides to the users while they use the equipment at the construction sites. The extremely high cost of the equipment has, however, been a very big reason for making sales of the heavy construction equipment reduce to a great extent. The construction companies, therefore, look out for options like renting the equipment.
- The downfall in the global market due to the extremely economic loss worldwide has been another major reason for the reduction of the sales of construction equipment. This leads to the increase of the rental business of the heavy construction equipment.
What has been the trend of the increment of the rental industry of the heavy construction equipment?
From the year 2010, the rental industry has been experiencing a very bright fortune in the heavy construction equipment business. If the growth rate of the rental industry of the heavy construction equipment is analysed, then it will be seen that every year there has been a huge increment in the rental business. The IHS Global Insight company of the United States of America forecasts that this heavy construction equipment rental company will experience a huge increment of up to $36.7 billion.
What is the future prospect of the rental for construction equipment during the end of 2014?
Towards the end of this running year, the increment of the rental demand for the heavy construction equipment will be increased much more. During the recession in U.S.A., many people had to stay with their relatives and as the housing industries are growing rapidly, there has been a continuous need for the equipment. Many construction equipment manufacturing companies are, therefore, manufacturing new equipment for rental purposes. With an easy solution to be able to utilize the equipment at a much reduced cost has gained a very positive response from the users. With new constructions developing every day, this need will grow more and the rental business will have a very popular demand.