“ORCA” rents specialized equipment to engineering firms and municipalities to support industrial and municipal water infrastructure operations. Typical rental periods range from 1 month to 5 years with most rental units in the field more than 12 months at a time. The equipment is needed when critical water infrastructure gets expanded, repaired or replaced. Typical payback on putting a rebuilt machine is fast, making the ± 40-piece rental fleet very valuable. Rental rates vary based on length of rental, supply and demand of equipment available and mobilization fees. Most rentals are $10k to $18k monthly for a single piece of equipment. The Company boasts a strong technical team who repair and maintain this equipment for their own fleet, as well as, customer fleets. ORCA will have its full fleet rented for many periods throughout the year. In addition to the equipment, the Company provides consumable products and other technical services to its customers. The demand for this niche rental is consistently steady and the Company believes it can quadruple in size with geographic expansion. This expansion can include both greenfield locations and acquisition of other specialty rental firms.
The Company leases facilities and a large equipment yard from a related entity owned by the owners of the Company.
Market Outlook / Competition
The Company usually keeps its full fleet rented and can grow locally and geographically by adding to its specialized fleet of specialty equipment. The Company will invest between $150k to $250k to put a fully rebuilt piece of equipment in the field. It often turns down work due to not having equipment available to rent.