Essex Rental reports increased demand

12 August 2014

Nicholas Matthews

Nicholas Matthews

Demand and rental duration for cranes is increasing across the USA, according to the second quarter results from Essex Rental Corp.

The crane rental specialist announced a 29.1 % increase in crawler cranes on rent for the second quarter of 2014, compared to figures for the end of 2013.

Crawler crane rental backlog as of 30 June 2014 increased 69.2 % compared to the backlog a year earlier.

Use of rough terrain cranes also increased; with utilisation at 68.2 % for the three months ended 30 June 30, 2014 compared to 60.3 % for the same three months in 2013.

Utilisation of city class and other tower crane utilisation increased to 46.0 % for the for the second quarter of 2014 compared to 42.4 % for the quarter ended 30 June 2013.

Essex said longer leases were also being demanded, as the average duration of signed leases increased 26.7 % for the first half of 2014, compared to the first half of 2013.

Nick Matthews, Essex president and CEO, said, "Strong hydraulic crawler crane order intake throughout the first half of 2014 has resulted in a 29.1 % increase in units on rent at June 30, 2014 as compared to year end 2013, and also a 69.2 % increase in backlog as compared to prior year.

"Hydraulic and traditional crawler crane utilisation has grown each month throughout the second quarter and hydraulic crawler crane utilisation for the month of June was at its highest level since 2008.

"Rough terrain cranes continued to increase utilisation sequentially for the third consecutive quarter and are also approaching prior peak levels, while city tower cranes also showed year over year and sequential improvements."

Stronger demand, however, had not yet translated into higher profits, the company said. Equipment rental revenue for Essex Rental was US$16.4 million (€12.2 million) for the second quarter of 2014, down from US$18.9 million (€14.2 million) for the same period in 2013.

Total gross profit decreased 17.1 % to US$5.3 million (€4 million) for the second quarter 2014 from US$6.4 million (€4.8 million) for the same three months in 2013.

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