Specialist
Former VP at United Rentals Inc
Agenda
- United Rentals’ (NYSE: URI) fleet analysis and demand outlook
- Key customers and competitive landscape
- United Rentals’ December 2022 acquisition of Ahern Rentals and rental industry consolidation trends
- Innovation pipeline and new equipment analysis
Questions
1.
What macroeconomic factors are impacting United Rentals and the rental industry overall that we should be noting? Are there any specific trends or any specific headwinds or tailwinds that we should be aware of?
2.
You just mentioned the large-cost projects, and as you said, USD 6bn-10bn is unique in the industry. Is that a trend that you think we’ll continue to see play out in 2024-25 with these megaprojects, or is that just an anomaly in the industry, relating back to pandemic constraints? Do you think this is something we’ll see in the future?
3.
Is there any lag between demand for commercial construction and rental equipment? When do you imagine United Rentals would start to feel demand softening, if it is to soften? You mentioned potentially late 2023, but how should we assess its timeline?
4.
Could you outline United Rentals’ fleet and typical customer base? What type of fleet diversification are we seeing in the face of a looming recession, as you mentioned?
5.
Are there any particular areas within speciality rentals or other equipment lines that you imagine United Rentals will continue to grow inorganically and be acquisitive in? Is there anything that the company is missing from its product portfolio?
6.
What do you see as the biggest synergies in United Rentals’ acquisition of Ahern Rentals? Are there any challenges?
7.
How can we quantitatively assess the difference in maintenance costs for equipment at the 44-month stage vs the 66-month stage? Is there any estimate or ballpark figure there that we should be looking at?
8.
You mentioned diversification of United Rentals’ customer base as a way to stack up against a looming recession. Who are the company’s most notable customers? Can you compare the Ahern customer base vs the United customer base, and will those Ahern customers stick with United during integration?
9.
How long do you think this period of industry consolidation will last? Will we see other players such as Sunbelt, Herc or H&E also add on regional companies and continue to be acquisitive?
10.
You named a lot of United Rentals’ key competitors – Sunstate, Sunbelt, H&E and Herc. Could you break down market share in the rental industry and how this landscape has shifted following the Ahern acquisition?
11.
Are there any specific regional competitors or rental companies that would be attractive to potential larger companies looking to grow or diversify their customer base or expand their geographic base?
12.
What technology innovation from EquipmentShare could be reflected across the larger rental industry? Where is that company innovating? Are any other potential disruptors in the industry primed to take share from United Rentals in any markets? I know EquipmentShare, as you said, is across a lot of the metropolitan areas with a base in the Midwest.
13.
How has demand historically trended for United Rentals’ key equipment? Where does demand currently stand, and what type of equipment is the most revenue-generating?
14.
What signs should we monitor to assess if demand does start softening? Are there any leading indicators to assess demand peaks and troughs in rental equipment?
15.
You mentioned OEM supply chain constraints as one of the reasons for pent-up demand. Are you seeing OEMs repair their supply chain to pre-pandemic health? How can we assess the strength of that supply chain as it recovers?
16.
If customers are going to choose between United Rentals and a company such as Sunbelt, what are the key differentiators? How does its pricing compare vs competitors’?
17.
How well is United Rentals positioned in innovation and new product development, especially vs Sunbelt and EquipmentShare? Has the company been successful in implementing fleet management software in telematics?
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