When valuing a modular fleet, our professionals will perform site visits to observe the condition of idle units and observe overall business operations. The valuation methodology will also include an analysis of monthly utilization, rental rates, contract length and the age of your modular fleet in order to understand its key economic drivers. We pay attention to where the industry is currently concentrated, as well as required maintenance for off-rent units.
The modular building and storage container industry is affected by trends in education, construction, oil and gas, healthcare, retail sectors, and even natural disasters. Industry concentration can prove to be a burden on modular fleets; however, given the variety of the industries that influence modular buildings, fleets may be able to diversify around some of the industry specific risks. Modular companies can thrive during shifting and cyclical environments, but managing downside risk should be a priority when analyzing the leased and idle fleet.
Modular buildings and storage containers comprise an industry of pre-assembled buildings designed to meet a need for temporary space, with the added ability to relocate when necessary. These buildings are designed to be repurposed through multiple uses, often as portable classrooms, construction offices, medical clinics, retail sites, temporary housing, or sales centers. Advantages of modular buildings include fast setup, lower costs, and ease of reconfiguration/relocation. Modular units are typically held as inventory by modular dealers to be rented or sold for the uses mentioned.