What is Customer Demographics and Target Market of Herc Rentals Company?

Herc Rentals Bundle

Get Full Bundle:

	BCG	$15	$10
	5 FORCES	$15	$10
	CANVAS	$15	$10
	4P's MIX	$15	$10
	PESTLE	$15	$10
	SWOT	$15	$10

TOTAL:

ADD TO CART

Who are Herc Rentals' customers?

Understanding customer demographics and target markets is paramount for any company's strategic planning and market success, especially in a dynamic industry like equipment rental. A pivotal moment for Herc Rentals, reflecting a significant demographic shift and market strategy evolution, was its spin-off from The Hertz Corporation in 2016. Founded in 1965 as Hertz Equipment Rental Corporation (HERC), the company initially operated as a subsidiary, with its early fleet primarily serving construction-related industries.

Herc Rentals, now a premier, full-service equipment rental company, has significantly expanded its offerings beyond basic equipment to include value-added services such as equipment maintenance, repair, and safety training. This contrasts sharply with its original market focus as a subsidiary, demonstrating an adaptation to the evolving needs of its diverse client base.

The company's strategic acquisitions, such as the completion of the H&E Equipment Services acquisition in June 2025, further underscore its commitment to expanding its market presence and diversifying its customer base. This move, the largest in the industry, has accelerated Herc's strategy to deliver market-leading growth by providing geographic and customer diversification, a substantially expanded footprint, and a larger fleet. This introduction sets the stage for a deep exploration into who Herc Rentals' customers are, where they operate, what their specific needs entail, and how the company strategically adapts to serve them in an ever-changing market. Understanding the Herc Rentals BCG Matrix can provide further insight into their market positioning.

Herc Rentals primarily serves a Business-to-Business (B2B) clientele across construction, industrial, and government sectors. This focus is evident in its revenue distribution, with contractors making up the largest segment. The company's equipment and specialized solutions are designed to meet the rigorous demands of these professional markets.

Contractors: The Largest Segment

Contractors represent the most significant portion of Herc Rentals' revenue, accounting for 37% as of Q2 2025. This indicates a strong reliance on the construction industry for business.

Industrial and Infrastructure Clients

Industrial clients contribute 25% to revenue, while the infrastructure and government sectors make up 17%. These segments highlight the company's broad reach beyond traditional construction.

Commercial Facilities and Other Sectors

Commercial facilities account for 14% of Herc Rentals' revenue, with other sectors comprising the remaining 7%. This diversification shows an ability to serve a variety of business needs.

Specialized Solutions and Fleet Expansion

Herc Rentals offers specialized solutions through its ProSolutions® line, including power generation and climate control. The company has also strategically expanded its fleet to include specialty equipment, which represented 23% of its fleet by the end of 2024, supporting mega projects and new end markets.

Herc Rentals' Evolving Target Market

Herc Rentals has a history of adapting its target market, initially focusing on construction and later incorporating industrial equipment. The recent emphasis on specialty equipment, which constituted 23% of the fleet in 2024, reflects a strategy to cater to large-scale projects and diversify its customer base. The acquisition of H&E Equipment Services in June 2025 further enhances its ability to serve national accounts and expand into urban markets, broadening its overall Target Market of Herc Rentals.

• Construction sector: 37% of revenue.
• Industrial sector: 25% of revenue.
• Infrastructure and government: 17% of revenue.
• Commercial facilities: 14% of revenue.
• Specialty equipment: 23% of fleet by end of 2024.

Herc Rentals SWOT Analysis

• Complete SWOT Breakdown
• Fully Customizable
• Editable in Excel & Word
• Professional Formatting
• Investor-Ready Format

GET TEMPLATE ➔

Herc Rentals' customer base, predominantly business-to-business entities, prioritizes operational efficiency, safety, and cost-effectiveness in their equipment rental decisions. These clients, spanning construction, industrial, and government sectors, are influenced by project demands, equipment reliability, and the availability of specialized solutions.

Operational Efficiency

Customers seek to streamline operations and maximize productivity on job sites. They value equipment that performs reliably and minimizes downtime.

Safety and Compliance

Ensuring a safe working environment and adhering to industry regulations are paramount. Customers look for partners who support these critical aspects.

Cost-Effectiveness

Avoiding the capital expenditure and ongoing costs of equipment ownership is a key driver. Customers appreciate flexible rental options that align with project budgets.

Equipment Reliability

Dependable equipment is crucial for project timelines. Customers expect well-maintained machinery that functions as intended.

Specialized Solutions

Access to a broad selection of premium, often specialized, rental equipment is a significant preference. This allows customers to meet unique project requirements.

Flexibility and Scalability

The ability to adjust equipment inventory based on fluctuating project demands is highly valued. This provides agility and optimizes resource allocation.

Customers are drawn to the practical advantages of renting, such as circumventing the significant overhead associated with equipment ownership, including maintenance, repairs, and storage. This flexibility allows them to scale their operations up or down swiftly in response to project needs. The company addresses common customer pain points by offering comprehensive equipment maintenance, repair, and safety training services, which are vital for ensuring continuous operation and compliance on job sites. Furthermore, Herc Rentals' commitment to minimizing customer downtime is underscored by its provision of 24/7 emergency services.

Market Trends and Innovation

Market trends and direct customer feedback play a pivotal role in shaping Herc Rentals' product development and service enhancements. The growing demand for sustainable and electric equipment, driven by environmental concerns and regulatory requirements, has prompted significant investment in eco-friendly options.

• As of 2024, 38% of Herc Rentals' fleet comprised electric or hybrid equipment, with strategic plans for further expansion in this area.
• The increasing expectation for 'smart equipment' featuring telematics for real-time data, remote diagnostics, and geofencing is enhancing productivity and reducing maintenance costs for contractors.
• Herc Rentals is actively developing its digital capabilities, including its 'ProControl by Herc Rentals™' platform, to support customer efficiency goals through advanced data and telematics integration.
• The company also focuses on tailoring its offerings to support large-scale mega projects and facilitates cross-selling opportunities by emphasizing specialty equipment. Understanding these evolving needs is key to the Growth Strategy of Herc Rentals.

Herc Rentals PESTLE Analysis

• Covers All 6 PESTLE Categories
• No Research Needed – Save Hours of Work
• Built by Experts, Trusted by Consultants
• Instant Download, Ready to Use
• 100% Editable, Fully Customizable

GET TEMPLATE ➔

Herc Rentals maintains a significant geographical presence with 622 company-operated branches across the United States and Canada as of June 30, 2025. This extensive network is further strengthened by strategic acquisitions, notably H&E Equipment Services, which has bolstered its position in key rental regions.

North American Footprint

Herc Rentals operates across the United States and Canada, with 622 branches as of mid-2025. The acquisition of H&E Equipment Services enhanced its presence in 11 of the top 20 rental markets.

Market Revenue Balance

The company aims for a balanced revenue stream, with local markets currently contributing 53% and national accounts 47%. The long-term goal is to shift this to 60% local and 40% national.

Growth Drivers in 2025

Herc Rentals benefits from projected increases in construction spending, with non-residential starts up 7% to $478 billion and infrastructure starts up 10% to $360 billion in 2025.

Strategic Expansion

In the first half of 2025, Herc Rentals opened 11 new greenfield locations. They also plan to convert general rental branches to ProSolutions facilities to boost specialty equipment capacity.

Herc's geographic strategy is deeply intertwined with its expansion efforts, including the opening of 11 new greenfield locations in the first six months of 2025 and the integration of over 160 acquired branches. This approach allows the company to capitalize on forecasted construction spending increases, such as the projected 7% rise in non-residential construction starts to $478 billion and a 10% rise in infrastructure starts to $360 billion for 2025. The company's focus on localizing offerings and marketing ensures it can effectively cater to diverse regional customer demographics and preferences, supporting both large-scale projects and the needs of smaller, local businesses. This strategic positioning is crucial for capturing market share, as highlighted in the Brief History of Herc Rentals, which details the company's growth trajectory.

Local Market Focus

Herc Rentals tailors its services and marketing to specific regions, aiming to capture local demand effectively.

National Account Strategy

The company balances its local presence with services for national accounts, seeking a 60/40 split in favor of local markets.

Impact of Acquisitions

The acquisition of H&E Equipment Services significantly expanded Herc's reach, particularly in urban areas and top rental markets.

Adapting to Market Trends

Herc Rentals leverages growth in mega projects and infrastructure spending to drive its geographic expansion and service offerings.

Greenfield Expansion

Opening new branches in strategic locations allows Herc to tap into anticipated increases in construction activity.

Specialty Equipment Focus

Repurposing branches into ProSolutions facilities enhances capacity for specialized equipment rental needs.

Herc Rentals Business Model Canvas

• Complete 9-Block Business Model Canvas
• Effortlessly Communicate Your Business Strategy
• Investor-Ready BMC Format
• 100% Editable and Customizable
• Clear and Structured Layout

GET TEMPLATE ➔

Herc Rentals employs a comprehensive strategy to attract and retain its customer base, focusing on network expansion and superior service delivery. The company's approach includes strategic acquisitions and the establishment of new greenfield locations to broaden its reach and service capabilities.

Customer Acquisition Through Expansion

Herc Rentals actively grows its footprint through acquisitions and new site openings. In 2024, the company completed nine acquisitions, adding 28 locations, and launched 23 greenfield sites, with 15 dedicated to specialty rentals. By mid-2025, an additional 11 greenfield locations were established.

Retention via Enhanced Service and Relationships

Customer loyalty is fostered through exceptional service, value-added offerings, and robust relationship management. The company emphasizes its 'Team Herc' ethos to ensure an optimal customer experience, including maintenance, repair, and safety training.

Leveraging Technology for Efficiency

Digital advancements play a key role, with platforms like 'ProControl by Herc Rentals™' enhancing customer efficiency through data and telematics. This technology aids in fleet optimization and anticipating market needs.

Strategic Product Diversification

The company focuses on cross-selling its diverse product portfolio to deepen customer ties and increase lifetime value. Increased investment in specialty equipment supports mega projects and facilitates cross-selling opportunities.

The acquisition of H&E Equipment Services in June 2025 was a significant move, expanding Herc's network to 622 locations across North America. This strategic integration enhances its capacity to serve national accounts and mid-market clients by broadening product availability and sales support. This expansion reflects a commitment to meeting diverse customer needs across various industries, from construction to industrial maintenance, and aligns with broader market trends, including the demand for specialized equipment for large-scale projects. Understanding the Competitors Landscape of Herc Rentals is crucial for appreciating these strategic maneuvers.

Network Expansion

Herc Rentals grew to 622 locations by mid-2025 through acquisitions and new openings, enhancing its market presence.

Customer Experience Focus

A commitment to superior customer service, including 24/7 emergency support and training, is central to retention efforts.

Digital Integration

Technology like 'ProControl by Herc Rentals™' is utilized to improve operational efficiency and customer service through data analytics.

Specialty Equipment Investment

Increased focus on specialty equipment caters to demand from mega projects and facilitates cross-selling.

Strategic Acquisitions

The acquisition of H&E Equipment Services significantly expanded the company's scale and service capabilities.

Cross-Selling Initiatives

Diversified product offerings are leveraged to strengthen customer relationships and increase overall value.

Herc Rentals Porter's Five Forces Analysis

• Covers All 5 Competitive Forces in Detail
• Structured for Consultants, Students, and Founders
• 100% Editable in Microsoft Word & Excel
• Instant Digital Download – Use Immediately
• Compatible with Mac & PC – Fully Unlocked

GET TEMPLATE ➔