Canada’s heavy equipment rental industry is expanding with earthmoving, forestry, and mining being the leading sectors. As per statistics, the industry is expected to reach annual growth figures of $14.59 billion by the end of 2029. Currently, it employs over 23,000 workers and has an estimated market value of $9.9 billion. The primary growth factors driving Canada’s heavy equipment industry are government infrastructure development projects, commercial development projects, increasing preference for sustainable business practices, and more.
However, to support the growing needs of the industry, contractors require more reliable sources for procuring heavy equipment. Their demands can be easily matched by launching a new online equipment rental website that can be accessed throughout the country, or by taking the digital leap for your existing offline equipment rental business. You can establish a network of contractors by launching your online equipment store and helping them complete diverse projects to boost the country’s growth.
In this article, we have thoroughly covered how you can launch an equipment rental store in Canada. Let’s take a closer look at the growth factors and business model before moving towards the development approach.
Table of Contents:
Key Growth Factors of Heavy Equipment Rental Industry in Canada
Business Model of Online Heavy Equipment Rental Businesses
Key Features Required on an Online Heavy Equipment Rental Store
The Best Approach to Develop Your Heavy Equipment Rental Store
Conclusion
Key Growth Factors of Heavy Equipment Rental Industry in Canada
The heavy equipment rental industry in Canada has stayed relatively stable and resilient because of certain factors. Some of those that validate the industry’s potential and growth prospects are:
1. High Rate of Interest on Financing Options
The exorbitant costs of purchasing heavy equipment have always been the primary deterrent behind heavy equipment sales. Even if a contractor or construction company considers financing the heavy equipment, the interest rate of the finance is way too high. These interest rates have only amplified in recent years. Thus, renting out heavy equipment seems to be a more capital-friendly option than both direct purchasing and sourcing.
2. Adaptation of Sustainable Practices
To control carbon emissions, the entire heavy equipment industry is drifting towards sustainable practices. One of which is rental as it relies on the sharing economy that does not produce any additional carbon emissions. Moreover, the rental model aligns with Canada’s carbon-neutral goal which the government aims to achieve by 2050. The entrance of renewable energy sources and electric vehicles in the heavy equipment rental industry further aids this goal.
3. Government Lead Infrastructure Development Plans
The Canadian government is working to improve the public infrastructure including roads, bridges, railways, airways, and more to provide the public with superior facilities. It has also launched several plans such as the Investing in Canada Infrastructure Program (ICIP) which pledges $33 billion for infrastructure development and the Ontario 30-year Transit Plan which pledges $65.7 billion toward transport network development. All such plans are positively impacting Canada’s heavy equipment rental industry. As the government is also allocating around 5% of its GDP every year towards infrastructure development, the equipment rental industry will benefit from a continuous demand.
4. Commercial Development Projects
Along with public infrastructure development plans, there are several commercial project undertakings in the country that are facilitating growth in the heavy equipment rental industry. These include the development of large establishments such as shopping malls, corporate buildings, stadiums, innovation work, and more. A few projects to name are The Bow, The Edge office building, 11333 Yonge Street offices, Absolute Towers, Royal Ontario Museum, New Etobicoke Civic Centre, and the SmartMill Head Office.
5. Growth in the Mining Sector
The mining sector of Canada contributes about 6% to its entire economy. Canada is also the leading provider of potash and supplies other minerals such as gold, diamonds, aluminum, titanium, platinum, palladium, and uranium. The extraction of these minerals on a large scale requires diverse types of equipment including drills, excavators, graders, loaders, and trucks. Due to the huge demand in the mining sector, the equipment rental industry is also witnessing growth.
Business Model of Online Heavy Equipment Rental Businesses
As said earlier, to capitalize on the opportunity, you can launch an online equipment rental store. Here’s an exemplary workflow for your online store:
Workflow of Equipment Rental Website
Step 1: The business owner adds equipment listings on the website
Step 2: The customer browses the website and selects equipment
Step 3: To place an order online, the customer selects the rental dates and makes payment along with the security deposit
Step 4: The business owner fulfills the order via the selected fulfillment method (delivery or self-pickup)
Step 5: On return, the business owner inspects the equipment for any damages and reimburses the same from the customer’s rental security. The remaining security amount is returned.
Invest in a Readymade Rental Solution to Save Development Costs
Key Features Required on an Online Heavy Equipment Rental Store
For smooth business operations, a heavy equipment rental store requires several rent-centric features. These features assist the admin in automating day-to-day operations and bringing efficiency to the entire business. When selecting a heavy equipment rental solution to build your online store, you can look out for these features.
Tiered Rental Pricing: The tiered pricing module will allow you to define varying rental charges for daily, weekly, and monthly rentals and meet varying consumer demand.
Advanced Booking Calendar: The rental booking calendar is essential to take rental date inputs from customers and prevent double booking. Additionally, it also shows accurate product availability to customers.
Rental Invoicing and Checkout: Via the traditional business method or on websites with no direct checkout option, new businesses often face the problem of payment delays. This is because new businesses often fulfill orders based on business trust and credit. This problem can be easily avoided by placing a rental invoicing and direct checkout option on the online rental store website.
Request for Quote Module: Like direct checkout, the Request for Quote (RFQ) module is important as it helps businesses in processing large and complex rental orders. For large orders, contractors often prefer getting a custom price quote and to target such an audience, both RFQ module and direct checkout options are important.
Agreement Management & eSign: Every equipment business owner has their own rental terms and conditions to ensure safe and secure rentals. These can be stored and sanctioned with the help of an agreement management & eSign option.
Rental Security Management: Another option to encourage the safe usage of rental equipment is to collect a rental security amount at the checkout. This rental security will be later used to reimburse any damages or charge penalties in case of violation of any rental terms.
Unavailability Management: Many times, business owners rent out equipment via offline means. This results in inaccuracies in online inventory and can lead to overbooking. To avoid this problem, you can rely on an unavailability management module that helps you mark a certain amount of inventory as unavailable for a specified period.
Maintenance Buffer Period: After the equipment is returned, it is put under an inspection period to run any maintenance and servicing tasks. During this period, the equipment cannot be synced with the online inventory. Thus, the maintenance buffer period allows you to set the maintenance duration in the system and sync all under-maintenance inventory with the online inventory.
Rental Add-ons: When renting out equipment, you can offer complimentary add-ons and services along with the equipment. These can include operator services, machine attachments, on-site cleaning, and more.
Late Returns Management: The rental website should have a feature to let you track and send reminders for any pending returns. Likewise, it should allow you to create varying late return periods and charge a late return fee accordingly.
The Best Approach to Develop Your Heavy Equipment Rental Store
Developing a business solution used to be a highly cost-inclusive task because of hourly development rates and long project delivery timeframe. However, readymade software solutions have solved this problem. Readymade solutions are tried and tested software that come with all necessary features out of the box. In most cases, you are only required to deploy them and configure your store. As these solutions are readily available and exclude long delivery time frames and hourly payments, they are highly cost-effective for all entrepreneurs. To support any additional requirements, some readymade solutions are also fully customizable.
Benefits of Using Readymade Equipment Rental Software:
Already tried-and-tested for heavy equipment rental business models
Come with all essential features to manage rental operations
Reduce the overall development time
Are more cost-effective than bespoke development
Help and support are also readily available
Can be used by businesses of all sizes.
The Most Advanced Features Packed Heavy Equipment Rental Software
Although there are several rental solutions available in the market, Yo!Rent emerges to be unrivaled with state-of-the-art and user-friendliness. It comes with all essential and advanced features to keep your business running 24/7 and streamline even the most complex operations including managing inventory, returns, taxes, rental agreements and more. Unlike other solutions, Yo!Rent is also a self-hosted solution that provides you the flexibility to select your own hosting server, making your rental website more secure and easily scalable. Going a step further, Yo!Rent provides you with complete pricing control, helps in damage recovery, automates paperwork, streamlines inventory and also assists in marketing and preparing business reports.
Learn More About Yo!Rent in a One-to-One Personalized Demo Session
Key Reasons to Select Yo!Rent are:
It is a self-hosted solution available at a one-time cost. This makes Yo!Rent highly cost-effective in the long run.
It has in-built capabilities to streamline B2B operations, such as bulk duration discount, rental duration discount, RFQ module, rental agreement management and more.
To help you meet the rental requirements of different customer cohorts, Yo!Rent supports hourly, daily, weekly and monthly rental bookings.
Yo!Rent is a multi-currency and multilingual software. It can help you target different regions with a single rental website.
Yo!Rent supports unlimited listings, transactions and user profiles. This makes it a highly scalable solution. Right from startup level to enterprise level, Yo!Rent accommodates all stages of business growth.
To support your brand vision and help you align your rental store website with the market standards, Yo!Rent has a fully personalizable homepage. All of its content blocks, homepage sliders, and more can be personalized from the admin dashboard.
To support any additional functionalities and requirements, Yo!Rent is also fully customizable.
Yo!Rent supports both single-vendor and multi-vendor business operations, making it easier to expand your business and diversify revenue generation streams.
For streamlining payments, Yo!Rent comes pre-integrated with 20+ payment gateways. You can select the ones as per your target regions and transaction charges.
Yo!Rent also comes with 12 months of free technical support so that your business operations run smoothly.
Conclusion
Setting up a heavy equipment rental store allows you to establish a network of reliable equipment dealers and capitalize on their rental inventories. In Canada, as the growth projections for the industry are high and also backed by numerous government and private development programs, launching an equipment rental business can reap impressive returns. However, for a successful launch, you will need to keep in mind a few important things that include the business model, development approach, launch time and your Go-to-Market strategy. To keep a clarity in all these, you can devise a business plan which will assist you in execution and cost savings.
The post Guide to Build a Rental Website for Canada-Based Equipment Rental Business appeared first on FATbit Blog.
The large-scale development plans in Canada are driving growth in the region’s heavy equipment rental sector. To meet the increasing demand, offline players and interested entrepreneurs can launch an online equipment rental store.
The post Guide to Build a Rental Website for Canada-Based Equipment Rental Business appeared first on FATbit Blog.
Amazon’s Foray into Entertainment: From Prime Video to MGM Acquisition
Amazon’s journey from a humble online bookstore to one of the world’s most powerful companies is a well-known story. However, its foray into the entertainment industry, which began with the launch of Amazon Prime Video and culminated in the acquisition of MGM, is a compelling narrative that illustrates the company’s ambition to become a dominant force in every aspect of modern life. This article delves into Amazon’s entertainment strategy, exploring how it has evolved, the significance of key milestones like the MGM acquisition, and the broader implications for the entertainment industry.
The Genesis of Amazon Prime Video
Amazon’s entry into the entertainment sector was a calculated move, born from a desire to enhance its ecosystem and drive customer loyalty. The launch of Amazon Prime Video in 2006 was initially part of the Amazon Prime subscription service, which offered members faster shipping for an annual fee. The addition of streaming video content was a strategic decision aimed at increasing the value proposition of Prime membership, thereby encouraging more customers to sign up and stay within the Amazon ecosystem.
At its inception, Prime Video was a relatively modest offering, featuring a limited library of licensed films and TV shows. However, Amazon quickly recognized the potential of the streaming industry, especially as competitors like Netflix and Hulu were gaining traction. The company began to invest heavily in acquiring more content and, crucially, in producing its own original programming.
The Rise of Amazon Studios
The establishment of Amazon Studios in 2010 marked a significant turning point in the company’s entertainment strategy. Initially, Amazon Studios took an unconventional approach to content development by inviting aspiring filmmakers and writers to submit scripts and project ideas. This crowdsourcing model was innovative but ultimately unsustainable, leading Amazon to pivot toward a more traditional production model.
In 2013, Amazon Studios made its first major splash with the release of Alpha House and Betas, two original series that were well-received but did not achieve widespread popularity. The real breakthrough came in 2014 with Transparent, a drama series that received critical acclaim and won multiple awards, including a Golden Globe. Transparent established Amazon as a serious player in original content production, paving the way for future successes like The Marvelous Mrs. Maisel, Fleabag, and The Boys.
Amazon’s investment in original content has been substantial, with billions of dollars poured into production each year. The company’s willingness to spend big on high-quality programming reflects its commitment to becoming a leader in the entertainment space. However, content production is only one piece of Amazon’s broader entertainment strategy.
The Acquisition of MGM: A Game-Changing Move
Amazon’s $8.45 billion acquisition of MGM in 2021 was a bold and significant step in its entertainment journey. MGM, one of Hollywood’s most iconic studios, boasts a vast library of content, including the James Bond franchise, Rocky, The Handmaid’s Tale, and thousands of other films and TV shows. The acquisition was not just about adding content to Prime Video’s library but also about gaining valuable intellectual property (IP) that could be leveraged across Amazon’s various platforms.
For Amazon, the MGM acquisition provided a treasure trove of content that could be used to attract new subscribers, retain existing ones, and compete more effectively with other streaming giants like Netflix, Disney+, and HBO Max. The move also underscored Amazon’s broader strategy of integrating its entertainment offerings with its other services, creating a seamless ecosystem that keeps customers engaged and loyal.
The acquisition was met with a mixed response from industry analysts. Some viewed it as a savvy move that would strengthen Amazon’s position in the highly competitive streaming market. Others, however, questioned whether the price tag was justified, especially given the challenges of integrating a traditional studio like MGM into Amazon’s tech-driven corporate culture.
The Broader Implications for the Entertainment Industry
Amazon’s aggressive push into entertainment has had significant implications for the broader industry. The company’s deep pockets and willingness to spend have forced traditional studios and other streaming platforms to rethink their strategies. The rise of streaming has already disrupted the traditional film and television business models, and Amazon’s entry into the space has accelerated this transformation.
One of the most notable impacts has been the escalating “streaming wars,” where companies are competing fiercely for content and subscribers. Amazon’s willingness to invest in original content and its acquisition of MGM have raised the stakes, prompting other companies to make similar moves. Disney’s acquisition of 21st Century Fox and WarnerMedia’s merger with Discovery are examples of how traditional media companies are consolidating to better compete in the new landscape.
Moreover, Amazon’s integration of entertainment with its broader ecosystem—ranging from e-commerce to cloud computing—represents a unique approach that other companies are beginning to emulate. The ability to cross-promote content across multiple platforms, offer exclusive deals to Prime members, and leverage data analytics to tailor content to individual preferences gives Amazon a competitive edge that few can match.
However, Amazon’s growing influence in entertainment has also raised concerns. Critics argue that the company’s dominance in multiple sectors, including retail, cloud computing, and now entertainment, could lead to antitrust issues. There are fears that Amazon’s expansion into entertainment could stifle competition, reduce diversity in content, and concentrate too much power in the hands of a single corporation.
The Future of Amazon in Entertainment
Looking ahead, Amazon shows no signs of slowing down its push into entertainment. The company continues to invest heavily in original content, with upcoming projects like the highly anticipated The Lord of the Rings series, which reportedly cost over $1 billion to produce. Amazon is also exploring new ways to integrate its entertainment offerings with its other services, such as bundling Prime Video with other Amazon subscriptions and offering exclusive content for Alexa-enabled devices.
Additionally, the MGM acquisition opens up new possibilities for Amazon to expand its content offerings, including potential reboots, spin-offs, and new franchises based on MGM’s extensive library. The acquisition also positions Amazon to be a major player in the licensing and distribution of content, giving it more leverage in negotiations with other studios and platforms.
In conclusion, Amazon’s foray into entertainment, from the launch of Prime Video to the acquisition of MGM, is a testament to the company’s ambition and vision. By investing in original content, acquiring valuable IP, and integrating its entertainment offerings with its broader ecosystem, Amazon has positioned itself as a formidable player in the entertainment industry. As the streaming wars continue to heat up, Amazon’s role in shaping the future of entertainment will be one to watch closely.