Paying the rent: Downward pressure on pricing has caused profit margins to fall

Revenue for the Furniture, Appliance and Equipment Rental industry is expected to grow at a slow pace over the five years through 2018-19. The industry is partially counter-cyclical, as rental firms generally benefit from increased demand when economic conditions are uncertain or weak. Lower unemployment, only small gains in real household discretionary income, and declining household debt over the past five years have hindered demand growth for rental goods supplied by the industry. Industry revenue is projected to grow at an annualised 1.0% over the five years through 2018-19, reaching $6.3 billion. This includes expected growth of 2.0% in the current year, with higher household debt and an increase in business confidence contributing to revenue more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Growth in business and household numbers have provided a larger potential market for the industry to service
  • Some rental firms have capitalised on business demand for rapidly evolving computer technology
  • Rapidly advancing home entertainment technology is forecast to help drive rental demand
  • Industry Report - Industry Investment Chapter

    The industry is characterised by a high degree of capital intensity. As industry operators rent furniture, equipment and appliances, labour is needed only to facilitate business. For each dollar required for wages in 2018-19, approximately $0.53 is projected to be invested in goods for rental, plant and equipment. These figures are characteristic of a highly capital-intensive industry. Capital intensity has decreased slightly over the past five years, due to wages increasing as a portion of revenue at a faster rate than depreciation.Capital intensity is not expected to change significantly over the next five years. However, businesses will look to automate where possible. The...purchase to read more.

    Additional Insights for the Furniture, Appliance and Equipment Rental Industry

    IBISWorld has determined the most important Key Success Factors for the Furniture, Appliance and Equipment Rental are:

  • Prompt delivery to market
  • Ability to carry out credit checks on clients
  • Marketing of differentiated products
  • IBISWorld analysts also discuss how external factors such as Number of businesses and Business confidence index in the Furniture, Appliance and Equipment Rental industry impact industry performance..

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    What's in this report

    What is the Furniture, Appliance and Equipment Rental Industry?

    Companies in the industry rent out a variety of household goods, equipment, appliances and furniture to consumers and corporate clients.

    Industry Products
  • Electronic equipment rental
  • Party equipment rental
  • Appliance rental
  • Furniture rental
  • Clothing rental
  • Other product rentals and sales
  • Industry Activities
  • Domestic appliance rental
  • Furniture rental
  • Sporting equipment rental
  • Computers and computer peripheral equipment rental
  • Electronic equipment rental
  • Suit and costume rental
  • Hand tools and DIY equipment rental
  • Bike, artwork, amusement machine and other household goods rental
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of businesses
  • Business confidence index
  • Household debt to assets ratio
  • Number of households
  • Real household discretionary income
  • Demand from online shopping

  • Current Performance
  • Weak industry growth
  • Technological change
  • Rent-to-buy options
  • High student rental
  • Chart: Revenue Growth

  • Industry Outlook
  • Pricing and demand
  • Industry opportunities
  • Industry expansion
  • Table: Furniture, Appliance and Equipment Rental Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Furniture, Appliance and Equipment Rental Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Professional, Scientific and Technical Services
  • Public Administration and Safety
  • Health Services
  • Consumers

  • Key Selling Industries
  • Clothing Wholesaling
  • Computer and Computer Peripheral Wholesaling
  • Furniture and Floor Covering Wholesaling
  • Household Appliance Wholesaling
  • Toy and Sporting Goods Wholesaling

  • Products & Services
  • Electronic equipment rental
  • Furniture rental
  • Appliance rental
  • Party equipment rental
  • Clothing rental
  • Other product rentals and sales
  • Chart: Furniture, Appliance and Equipment Rental Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Businesses
  • Households
  • Government agencies
  • Other sectors
  • Chart: Major Market Segmentation for the Furniture, Appliance and Equipment Rental Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Furniture, Appliance and Equipment Rental

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Furniture, Appliance and Equipment Rental Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Furniture, Appliance and Equipment Rental Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Furniture, Appliance and Equipment Rental Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Computerised Inventory Tracking
  • A computerised tracking system that allows firms to manage rental stock use, monitor popular styles, carry out database queries and manage inventory effectively.
  • Leasing
  • An agreement between a leasing company and a client where the client takes ownership of the home appliances at the end of the lease period after payment of a pre-determined residual value.
  • Rental-Purchase Agreement
  • A type of flexible purchase agreement that allows a customer to take ownership of merchandise after an agreed-upon rental period.
  • Renting
  • An agreement between a rental company and a client where the client chooses to return the home appliances at the end of the rental period, or purchase the appliances outright.
  • What Our Customers Say

    Why buy this report?

    The Furniture, Appliance and Equipment Rental market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Furniture, Appliance and Equipment Rental:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Furniture, Appliance and Equipment Rental market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Furniture, Appliance and Equipment Rental, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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