Hertz 2015 Annual Report Download - page 19

Table of Contents
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of our operations in France (other than Corsica) and Spain. Subsequent to the sale of these operations, we generate almost all of our equipment
rental revenue in North America with approximately 1% of our equipment rental revenue driven by our remaining international operations.
The equipment rental industry is highly fragmented with few national competitors and many regional and local operators. We believe, based on
market and industry revenue data, that we are one of the leading companies (together with United Rentals, Inc. and Ashtead Group plc’s Sunbelt
Rentals brand) in the North American equipment rental industry. A number of the industry's competitors focus on a subset of equipment rental
offerings, making the overall industry fragmented with respect to types of equipment offered, services provided and geographic locations from
which such equipment is offered.
The principal end markets we serve, based on our customers’ Standard Industrial Classification (“SIC”) codes, consist of the following:
• Construction – Our construction rental operations serve large and small companies in the construction industry, and principally the
non-residential construction industry. Non-residential construction consists primarily of private sector rentals relating to the
construction, maintenance, and remodeling of commercial facilities. According to Dodge Data & Analytics, U.S. non-residential
construction spending remained flat in 2015 and is estimated to grow at an annual rate of 9% in 2016.
• Industrial – Our industrial rental operations serve renters across a broad range of industries, including large industrial plants, refineries
and petrochemical operations, industrial manufacturing, power, pulp, paper and wood and other industrial verticals. According to
Industrial Info Resources, spending in the U.S. industrial sector grew at an annual rate of approximately 7% in 2015 and is estimated
to grow at an annual rate of 5% in 2016.
• Other Customers – In addition to the specific markets cited above, we service a variety of other customers across a diverse group of
industries, including governmental entities and government contractors, disaster recovery and remediation firms, utility operators,
infrastructure, railroad, individual homeowners, entertainment production companies, agricultural producers and special event
management firms.
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Equipment Rental
We offer equipment for rent, including aerial, earthmoving, material handling, and specialty equipment, such as air compressors, compaction
equipment, construction-related trucks, electrical equipment, power generators, contractor tools, pumps, and lighting, studio and production
equipment. This equipment is available for rent by our customers on an hourly, daily, weekly, monthly or yearly basis and we provide a suite of
comprehensive services to support, maintain and service the equipment we rent to our customers.
Equipment Re-Rental
In the event that a customer has a rental need that is not contained within our diversified fleet or an unexpected request, our experienced staff can
provide re-rental options to meet that customer’s needs. In this instance, we will rent a piece of equipment from another company and then provide
it to our customer. Our re-rental capabilities help us expand the portfolio of solutions available to our customers, particularly within our national and
industrial accounts programs.
Sales of Rental Equipment
We routinely sell our used rental equipment through a variety of channels, including retail sales to customers and other third parties, sales to
wholesalers, brokered sales and auctions. Our website includes a catalog of equipment for sale to third parties. We also provide a source of
potential financing to buyers of our rental equipment, which is designed to promote sales of used equipment to private parties.
We also sell new equipment for many leading equipment manufacturers in the United States and Canada.
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The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,
except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.