Analyst Note| Dawit Woldemariam |
Herc posted another strong quarter of results, thanks to continued strength in rental demand. The industry has been lifted by tight supply in the equipment market over the past year. The heavy equipment industry has been hampered by the component shortage, leading to a shortage of new equipment. Heavy equipment manufacturers have had machinery sit on factory floors waiting for chips to be put in. As a result, contractors have increasingly turned to rental equipment companies like Herc to get the equipment they need to complete jobs.