Confidential — Investor Materials
Layer 2 — Strategic Moat
The Closed Ecosystem
We are the infrastructure for the $80B Equipment Rental oligopoly. A walled garden where only the vetted survive.
The Equipment Rental Oligopoly
Three companies control 70%+ of the North American equipment rental market. Core is the #1 specialized freight brokerage serving all three.
Top Brokerage in Equipment Rental
Rigorous vendor vetting by Fortune 500 customers creates an impenetrable barrier. Competitors can't get in. We're already inside.
Defensive Moat
Three Pillars of Defensibility
High Barriers to Entry
Rigorous vendor vetting by Fortune 500 customers creates a protective moat. Average onboarding time for new vendors: 5+ years.
Deep Integration
Branch-level integration with customer operations creates a self-reinforcing flywheel. Once integrated, switching costs are prohibitive.
Operational Velocity
Real-time bidding and dispatch systems optimized for rental urgency. 85% of shipments move within 36 hours of tender.
Perpetual Motion
The Equipment Flywheel
Rental equipment never stops moving. Every piece of equipment generates freight revenue each time it moves — to a job site, back to a branch, or on to the next project. The same asset creates recurring freight demand forever.
Herc + H&E: More Branches, More Freight
In June 2025, Herc Holdings completed its $5.3 billion acquisition of H&E Equipment Services, nearly doubling its branch network. For Core Logistics, this means one thing: more freight opportunity.
Core is one of only 2 brokerages invited to present to Herc Rentals on managing their local haul operations. This represents a transformative opportunity to become their strategic logistics partner.
- 1Proven track record with equipment rental freight
- 2AVRL automation for cost-efficient local moves
- 3Existing relationship with 21% branch penetration
Recession Proof
Equipment rental freight is counter-cyclical. When the economy contracts, rental companies rebalance fleets—moving equipment from weak markets to strong ones. The freight doesn't stop; it just changes direction.
Growth Freight
Equipment moves to job sites. New construction, infrastructure projects, and industrial expansion drive outbound freight from branches to customers.
Rebalancing Freight
Equipment returns and redistributes. Fleet rebalancing, consolidation moves, and inter-branch transfers create sustained freight demand.
Always Moving
We move equipment in both directions. Our deep integration means we capture freight regardless of economic cycle—growth or contraction.
See the Growth Opportunity
Layer 3: How we expand within this closed ecosystem.