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Rental Nikken's 2024 Fiscal Year Report

On July 4, 2025, Rental Nikken Co., Ltd. released its financial report for the 61st fiscal year (2024). This overview examines the company's performance and strategic initiatives as it navigates a landscape filled with economic uncertainties.

Economic Environment

The Japanese economy showed signs of gradual recovery during the fiscal year due to robust corporate earnings, improved employment conditions, and increased capital investment. However, challenges such as high global raw material prices and tightening financial conditions have resulted in a mixed outlook for the future. Within the construction sector, steady capital investments have driven performance, especially in semiconductor factories and logistics warehouses, alongside urban redevelopment projects. In non-construction areas, production shutdown projects in various domestic plants contributed positively to sales.

As a result, Rental Nikken achieved record revenues of 134.9 billion yen, representing a 6% increase from the previous year. The net profit for the period reached 6.6 billion yen, marking an impressive 18% growth.

Financial Highlights

• - Total Revenue: 134,900 million yen (106% YoY)
• - Net Profit: 6,600 million yen (118% YoY)

Strategic Initiatives for FY2024

As FY2024 marks the third year of the company's mid-term growth strategy, the Nikken Green Company (NGC) plan, Rental Nikken established two new departments directly under the President: the Data Management Promotion Office and the Business Process Re-engineering (BPR) Promotion Office.

Data Management Initiatives

The Data Management Promotion Office is focused on refining management accounting practices, visualizing profits across various categories, which will lead to timely actions for improving profitability and revenue strength.

BPR Initiatives

The BPR Promotion Office aims to enhance operational efficiency and workplace comfort simultaneously. Last year, the team worked on digitizing procurement invoices and other tasks to streamline operations.

Additionally, Rental Nikken is investing in digital sectors, enhancing product and solutions development, and advancing partnership strategies. Successes in online rental services, launched four years ago, have led to a steady increase in user numbers. To further sustainability initiatives, the company has developed new rental products that contribute to carbon offsetting by utilizing biofuels for portable generators used in shopping mall illuminations.

As part of its strategic partnership, Rental Nikken also welcomed Measurement Network Service, a leader in automatic measurement services, into its group as of March 2025.

Challenges Ahead

The construction equipment rental sector anticipates a favorable business environment for FY2025, with total construction investment expected to be 74.9 trillion yen (up 1.3% YoY) and government construction investment at 24 trillion yen (up 1.6% YoY). Despite the projected increase in corporate capital investments, uncertainties from inflation, service price surges, the slowdown of the Chinese economy, and geopolitical instability could impact the business environment.

In Japan, the population above 65 years old is nearing 30%, raising concerns about further declines in the labor force and increasing social security costs. Rental Nikken must respond to productivity improvement demands across industries, especially construction, while also focusing on internal operational efficiency.

Organizational Restructuring

Effective April 1, 2025, Rental Nikken implemented an organizational restructuring to enhance speed in decision-making. This involved shifting from a structure of six headquarters and four branches to four headquarters and five branches, delegating authority to enhance decision-making speed.

Digital Transformation (DX)

Since the launch of online rental services in 2021, Rental Nikken is committed to ongoing improvements, adding new functionalities to meet customer needs for operational efficiency. RFID tags are being progressively integrated into rental products to streamline inventory management in sales offices and centers.

Development Focus

To differentiate in the market, Rental Nikken is strengthening its development capabilities, with plans to launch new products that address customer needs, including a high-performance portable battery.

Employee Wellbeing Initiatives

To ensure employees feel secure amid rising costs, Rental Nikken will continue its trend of annual base salary increases, marking three consecutive years of growth. Furthermore, they will raise starting salaries for new recruits entering in 2026. The company aims to enhance employee engagement through robust training programs and improve work-life balance.

In conclusion, as Rental Nikken navigates a complex economic landscape, its strategic initiatives underscore a commitment to growth, sustainability, and employee wellbeing.