Growth in civil construction and infrastructure works stimulate equipment rental sector

Long-term projections leave lessors optimistic and increase expectations for the 3rd ANALOC Rental Show, in Belo Horizonte (MG)

The Brazilian machinery rental market is experiencing a promising moment, driven by increased investments in civil construction and infrastructure. The balance sheet for 2024 and projections for 2025 indicate robust expansion, with the Brazilian Chamber of the Construction Industry (CBIC) revising its growth estimate for the sector from 3% to 3.5%, thanks to the recovery of the real estate market, job openings in the sector and optimistic economic expectations.

The infrastructure works segment follows this trend. The Brazilian Association of Infrastructure and Base Industries (ABDIB) highlights that 2024 will be a record year for investments in the sector, with a total of R$259.3 billion, with most of this amount coming from the private sector. This scenario increases expectations for the 3rd ANALOC Rental Show, the main equipment fair for the machinery rental sector in Brazil, which will be held on June 4, 5 and 6, 2025, at Expo Minas, in Belo Horizonte (MG).

The result of a partnership between the Brazilian Association of Unions and Associations Representing Equipment, Machinery and Tool Rental Companies (ANALOC) and the LocadoresBR Group, the fair will bring together the industry’s leading names and showcase the latest developments in the segment. With 90% of the stands sold eight months before the event, this shows that companies see the exhibition as a unique opportunity to strengthen commercial partnerships, launch products and expand their businesses.

Market data shows that the fair will take place at a favorable time for rental. According to a report by Mordor Intelligence, the global construction machinery rental market is estimated at US$134.88 billion in 2024 and is expected to reach US$170.92 billion by 2029, with a compound annual growth rate (CAGR) of 4.85%. In Brazil, the sector is following the same trajectory, accompanying the robust growth of the construction industry.

In turn, ABDIB reinforces that several projects of the New PAC Infra are being structured by agencies such as BNDES, Caixa Econômica and private entities, to be offered to the market in the near future. There are 30 airports, 17 railways, 47 electric power projects, 5 communications projects, 31 administrative infrastructure projects, 184 social infrastructure projects, 45 urban mobility projects, 46 in the port area, 68 in the highway sector and 25 in sanitation.

“CBIC’s projections show that the boom in the affordable housing segment and the consistent program of public and private works are driving this sector’s expansion. Although the construction market also faces challenges such as the impact of high interest rates and the limited supply of real estate credit, the current situation directly benefits equipment rental companies,” acknowledges Reynaldo Fraiha, director of ANALOC Rental Show.

This means that rental has been an efficient solution for companies of all sizes seeking competitiveness in the civil construction sector. “Even the increase in the prices of new machinery has motivated construction companies and contractors to seek equipment rental as a more economical alternative. The emergence of advanced technologies and increased automation should also contribute to this growth, making the sector increasingly attractive to investors,” adds Fraiha.

Landlord perception

In the first half of 2024, Grupo LocadoresBR conducted a survey with 95 landlords from several Brazilian states to diagnose the performance of their companies. Entitled ‘The scenario of rental companies in Brazil’, the survey was answered by 95 small and medium-sized entrepreneurs, and 62.1% of those interviewed responded that they consider the current economic scenario to be favorable for rental. Of these, 57.9% consider the moment to be good and 4.2% recognize the current situation as excellent.

“Based on this analysis, we realized that the market has improved due to the increase in the number of civil works, with small renovations, residential maintenance, projects in the housing and infrastructure areas, largely driven by the growth of sectors such as mining, oil and agribusiness”, recognizes Leônidas Ferreira, known as Leo Sisloc, executive director of Sisloc Softwares de Gestão and president of Grupo LocadoresBR.

Furthermore, Leo notes that people already understand the practical and economic benefits of renting and are adopting it. “Today, not only contractors, industries and construction specialists seek equipment rental, but end consumers also turn to rental companies to meet their needs in machines and tools for small repairs and residential maintenance,” he adds.

At the last edition of ANALOC Rental Show, held in Rio de Janeiro, the organizers also realized that the rental market is more competitive. Rental companies have left the amateur status they had been in for many years to improve their management, invest in technology, corporate governance, structured sales processes with CRM, customer conversion rates, good tax management and analysis of indicators. “This evolution is a consequence of the improvement of processes, the growth of the activity and the dissemination of new resources and technologies in specific business events for rental companies, who operate in an increasingly demanding market”, notes Reynaldo Fraiha.

More information for the press:
Santelmo Camilo – (13) 98178-7338 – santelmo@timepress.com.br
Eliana Zani – (11) 99781-2402 – elianazaniomnipress@gmail.com

Posted in Release