The global construction equipment rental market is booming as never before, thanks to a vast array of infrastructure mega projects taking shape in countless arenas across the planet.
These huge and complex multi-billion-dollar endeavours are creating jobs, boosting connectivity, driving economic growth and delivering unrivalled returns for lovers of money everywhere. Moreover, each of the power generating facilities, land reclamation programmes, high speed rail links, mass transit systems, expressways, ports, bridges and tunnels that make up these awesome undertakings, require massive amounts of construction equipment to bring them into being.
What this means is that whether they’re invested in India, the Middle East or anywhere else in the world, the owners of that machinery are enjoying the most phenomenal returns by renting it out to contractors on the ground responsible for delivering the projects in question.
In India, where some 18 per cent of the world’s population reside, flagship projects include a much-needed second international airport for Mumbai, the country’s most populous city. Considered an essential addition to the city’s infrastructure portfolio, this new super hub will serve to ease congestion to the tune of 90 million passengers annually when it opens in 2023.
Meanwhile, in Hyderabad, a comprehensive new metro rail system is currently under construction. This includes a 31km express link to the city’s airport, with elevated or underground sections making up the majority of its length, meaning an army of specialised equipment is needed.
In fact, across India, the machines are out in force, toiling day and night on projects ranging from power, road, rail and telecoms, to shipping; all part of a strategic decision to prioritise connectivity and enhance business and trading opportunities across the country.
In the Middle East, the world’s richest country, Qatar, is busy crafting a 300km metro at a cost of $36 billion, while an expressway programme spread across 78 major projects will deliver 800km of new road and 200 interchanges; all part of the “Qatar National Vision 2030”.
Elsewhere in the region, Dubai’s Al Maktoum International Airport is being built at a staggering cost of $82 billion dollars, and comes complete with unprecedented demand for material handlers, earth movers and other construction equipment. What’s more, this demand will persist until 2030 at the very least, when the colossal new facility’s first phase is due for completion.
Meanwhile, Dubai International City, a mixed-use development of residences, businesses and tourist attractions, has a $95 billion price tag, while a further $65 billion is being thrown at “Dubailand” to make it the world’s largest retail and entertainment site when it opens in 2025.
Abu Dhabi is also a hotbed of activity, exemplified by the ongoing construction of super-sustainable $22 billion Masdar City, while the $36 billion homage to pleasure that is Yas Island, is sure to keep the machines gainfully employed for many years to come.
It is the same story anywhere in the world one cares to look, with big, bold, beautiful building projects dominating skylines from Rio to Riyadh and from Jakarta to Johannesburg.
And, with so many new mega projects coming on stream, the demand for construction equipment has gone through the roof, delivering for the owners of that machinery unrivalled rental income.
Across the globe, throughout history, the smartest investors have understood that fabulous fortunes can be made simply by renting things out. And, today is no different, with construction equipment rental the most lucrative modern-day example of this tradition.
It stands to reason, of course, when one considers that global construction output is set to grow by 85 per cent to reach an awesome $15.5 trillion by the end of the decade! And, with increased automation, growing populations and urbanization combining to drive this rapid growth, the global construction equipment rental market is forecast to reach an almighty $230 billion by 2025!
With figures like that, even those with the biggest appetites for making money are getting in on the act and feasting on the fruits of this bonanza business.