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Herc Rentals Inc.

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Herc Rentals Inc. - Manufacturing & Construction showcase

Year Founded & Workforce

1965

4,800 Employees

Industry

Manufacturing & Construction

Services

Global Construction Equipment Rental MarketConstruction Equipment Rental Market
H

Herc Rentals Inc. Employee Contacts

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Herc Rentals Inc. Overview

Company Headquarters: Florida, United States

Founded: 1965

Workforce: ~ 4,800

Company Working: Herc Rentals Inc. is a premier, full-service equipment rental firm that provides their customers the equipment, services and solutions they need to achieve optimal performance safely, efficiently and effectively. The company has than 50 years of equipment rental expertise, approximately 4,800 employees and approximately 275 company-operated locations primarily in the United States and Canada. The company offers rental equipment such as aerial equipment, concrete and masonry equipment, air equipment, electrical tools and equipment, earthmoving equipment, lawn and garden equipment, safety equipment, material handling equipment, general equipment, and specialty equipment. Herc Rentals serves a broad range of customer markets, including large and small companies in construction; industrial customers such as large industrial manufacturing plants, refineries and petrochemical operations; and other customers such as governmental entities and government contractors, disaster recovery and remediation firms, infrastructure, railroads , utility operators, individual homeowners, entertainment production companies, agricultural producers, special event management and facility management firms. The company is also engaged in the sales of new as well as used equipment. It operates in the U.S., Canada, and other countries globally. Market presence in 39 states in the United States and 8 provinces in Canada. Herc Rentals Inc. officially separated from Hertz Global Holdings in July 2016.

Strategy

The company has established a long-term strategy comprising five "pillars." Each pillar includes the primary initiatives that are critical to its long-term success. They are building a strong culture, expanding and diversifying their revenue opportunities with a wider range of fleet, markets and customers, improving operational effectiveness, enhancing their customers' experience, maintaining financial discipline. Herc Rentals primarily focuses on providing equipment rental solutions to its customers. By specializing in this area, they can concentrate on maintaining a diverse fleet of equipment and offering reliable service. Herc Rentals maintains a broad range of equipment in its fleet to cater to the diverse needs of its customers. This includes equipment for construction, industrial, infrastructure, and commercial sectors. By offering a comprehensive selection, they aim to be a one-stop solution for equipment rental needs. Herc Rentals places a strong emphasis on understanding and meeting customer needs. They aim to build long-term relationships by providing tailored solutions, reliable equipment, and exceptional customer service. They work closely with customers to understand project requirements and offer the right equipment and support.

Company Snapshot

$1,781.3M

Revenue

4,800

Employees

1965

Founded

Florida, United States

Headquarters

SWOT Analysis

Strengths

  • Successful track record of integrating complimentary rms through mergers & acquisition.
  • The company has good Returns on Capital Expenditure
  • The company has strong distribution network

Weaknesses

  • Lack of Effective Financial planning could affect the growth of the company’s revenue.
  • The profitability ratio and Net Contribution % of Herc Holdings Inc. are below the industry average.
  • The profitability ratio and Net Contribution % of Herc Holdings Inc. are below the industry average

Opportunities

  • The new technology provides an opportunity to Herc Holdings Inc. to practice differentiated pricing strategy in the new market.
  • New customers from online channel could create lucrative opportunities for the growth of the company.
  • The new technology provides an opportunity to Herc Holdings Inc. to practice differentiated pricing strategy in the new market

Threats

  • Shortage of skilled workforce in some markets could pose a threat for the company’s growth.
  • Rising pay level especially movements such as $15 an hour and increasing prices in the China can lead to serious pressure on profitability of Herc Holdings Inc.
  • Shortage of skilled workforce in some markets could pose a threat for the company’s growth

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Key Developments

DateApproachDevelopment
March 2022AcquisitionHerc rentals entered into an agreement to acquire Cloverdale Equipment Company.
November 2021AcquisitionHerc rentals acquired Reliable Equipment LLC, a construction equipment rental company.
April 2021AcquisitionHerc rentals completed the acquisition of substantially all the assets of CBS Rentals.
September 2021AcquisitionHerc rentals acquired Dwight Crane Ltd and its US affiliate, LRX LLC.
December 2019ExpansionHerc rentals announced the addition of seven new greenfield locations in 2019, including in Boston, the New York City-New Jersey market, Orlando, Dallas, Raleigh, NC, and Hawaii

Product Offering

  • Herc Rentals Inc.
    • Global Construction Equipment Rental Market
    • Construction Equipment Rental Market

Financial Performance

Explore key financial metrics, segmented revenue, balance sheet health, and performance trends.

By Business Segment: Sales rose from USD 1,781.3 Mn in 2020 to USD 2,738.8 Mn in 2022.
Herc Rentals Inc. — By Business Segment
Series (USD Mn)202020212022
Sales1,781.32,073.12,738.8

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