WillScot Mobile Mini Holdings Corp. (WSC): Business Model Canvas [10-2024 Updated]

WillScot Mobile Mini Holdings Corp. (WSC) has carved a niche in the modular space and portable storage market, leveraging its extensive inventory and strong brand recognition. This blog post delves into the Business Model Canvas of WSC, illustrating how the company effectively balances its key partnerships, value propositions, and revenue streams to cater to diverse customer segments. Read on to discover the intricacies of WSC's business strategy and the factors driving its success.

WillScot Mobile Mini Holdings Corp. (WSC) - Business Model: Key Partnerships

Collaborates with suppliers for modular and portable units

WillScot Mobile Mini relies on a network of suppliers to provide modular and portable units essential for its operations. In 2024, the company reported a total revenue of $1.793 billion, with modular product revenue contributing approximately 77.8% of this total, amounting to $467.8 million. The company engages multiple suppliers to ensure a steady supply of high-quality modular units, which are critical for meeting customer demand. The average modular space monthly rental rate increased by 6.1% year-over-year to $1,199.

Engages financial institutions for capital and acquisition funding

Financial institutions play a crucial role in WillScot's ability to fund its operations and acquisitions. As of September 30, 2024, the company had outstanding debt totaling approximately $3.6 billion, which includes $547.6 million due within the next twelve months. In January 2024, WillScot entered into interest rate swap agreements with financial counterparties relating to $500 million of variable-rate debt, helping to manage interest rate exposure. The company’s capital expenditures for rental equipment reached $207 million for the nine months ended September 30, 2024, marking a significant increase from $166 million in the prior year.

Partners with contractors and service providers for delivery and installation

To enhance its service offerings, WillScot collaborates with various contractors and service providers for the delivery and installation of its units. The company reported delivery and installation revenues of $114.8 million for the three months ended September 30, 2024. This partnership model not only streamlines operations but also allows WillScot to leverage specialized expertise in logistics and installation, which is critical for customer satisfaction. The average portable storage monthly rental rate increased by 9.5% to $265.

Partnership Type	Financial Impact	Key Metrics
Suppliers	$467.8 million in modular product revenue	77.8% of total revenue
Financial Institutions	$3.6 billion total outstanding debt	$207 million capital expenditures
Contractors and Service Providers	$114.8 million in delivery and installation revenue	9.5% increase in portable storage rental rates

WillScot Mobile Mini Holdings Corp. (WSC) - Business Model: Key Activities

Leasing modular space and portable storage units

WillScot Mobile Mini Holdings Corp. primarily engages in leasing modular space and portable storage units. For the three months ended September 30, 2024, the leasing revenue totaled $455.6 million, representing a decrease of $11.2 million, or 2.4%, compared to the same period in 2023. The average monthly rental rate for modular space increased by 6.1% year-over-year to $1,199. In terms of units, the average modular space units on rent decreased by 3,270 units, or 3.3%, year-over-year.

Providing value-added products and services (VAPS)

WillScot also offers value-added products and services (VAPS) that enhance the leasing experience. Total VAPS revenues for the nine months ended September 30, 2024, increased by $4.9 million, or 1.7%, to $296.6 million. The penetration of VAPS has been a strategic focus, contributing significantly to overall revenue. For the three months ended September 30, 2024, VAPS revenues slightly increased by $0.3 million to $100.2 million.

Maintaining and managing rental equipment fleet

The management of the rental equipment fleet is critical to WillScot’s operational efficiency. The company reported a gross profit of $321.5 million for the three months ended September 30, 2024, a decrease of $18.2 million from the previous year. The depreciation of rental equipment increased by $9.3 million to $76.2 million during the same period. The average utilization rate for modular space units was reported at 62.1%, down from 63.9% a year earlier.

Metric	Q3 2024	Q3 2023	Change
Leasing Revenue	$455.6 million	$466.8 million	$(11.2 million)
Average Monthly Rental Rate (Modular Space)	$1,199	$1,130	$69
Average Modular Space Units on Rent	94,899	98,169	$(3,270)
Total VAPS Revenues	$100.2 million	$99.9 million	$0.3 million
Gross Profit	$321.5 million	$339.7 million	$(18.2 million)
Depreciation of Rental Equipment	$76.2 million	$66.9 million	$9.3 million
Average Utilization Rate (Modular Space)	62.1%	63.9%	(180 bps)

WillScot Mobile Mini Holdings Corp. (WSC) - Business Model: Key Resources

Extensive inventory of modular and portable storage units

WillScot Mobile Mini Holdings Corp. maintains a significant inventory of modular and portable storage units, which is critical for its leasing operations. As of September 30, 2024, the company reported:

• Average modular space units on rent: 95,456
• Average portable storage units on rent: 126,163
• Average modular space monthly rental rate: $1,175
• Average portable storage monthly rental rate: $263
• Total revenue from modular space leasing: $760.4 million (nine months ended September 30, 2024)
• Total revenue from portable storage leasing: $263.6 million (nine months ended September 30, 2024)

Strong brand recognition in North America

WillScot has established a strong brand presence in North America, recognized for its quality and reliability in providing modular space and portable storage solutions. This brand recognition supports customer loyalty and facilitates business growth. The company has undergone a rebranding initiative to unify its identity under the WillScot name, transitioning from the Mobile Mini brand. This strategic move aims to consolidate its market presence and enhance brand value.

Diverse customer base across multiple industries

WillScot serves a diverse array of industries, including construction, education, healthcare, and retail. This diversification mitigates risks associated with economic fluctuations in specific sectors. The company reported the following financial metrics for the nine months ended September 30, 2024:

• Total revenue: $1,793.2 million
• Leasing revenue: $1,374.8 million
• Delivery and installation revenue: $323.3 million
• New unit sales revenue: $52.7 million
• Rental unit sales revenue: $42.4 million

Metric	Value
Average modular space units on rent	95,456
Average portable storage units on rent	126,163
Average modular space monthly rental rate	$1,175
Average portable storage monthly rental rate	$263
Total revenue from modular space leasing	$760.4 million
Total revenue from portable storage leasing	$263.6 million
Total revenue	$1,793.2 million
Leasing revenue	$1,374.8 million
Delivery and installation revenue	$323.3 million
New unit sales revenue	$52.7 million
Rental unit sales revenue	$42.4 million

WillScot Mobile Mini Holdings Corp. (WSC) - Business Model: Value Propositions

Offers flexible leasing options with month-to-month renewals

WillScot provides flexible leasing options that cater to diverse customer needs, allowing clients to opt for month-to-month renewals. This adaptability is crucial for clients who require temporary space solutions without long-term commitments. The average modular space monthly rental rate increased to $1,199 for the three months ended September 30, 2024, reflecting a 6.1% year-over-year increase.

Provides comprehensive turnkey solutions for various customer needs

WillScot offers comprehensive turnkey solutions that encompass modular space and portable storage. The modular product revenue accounted for 77.8% of consolidated revenue for the three months ended September 30, 2024, totaling $467.8 million, an increase of 3.8% year-over-year. This revenue growth is attributed to enhanced delivery and installation services, which rose by 8.6%.

Customer Segment	Service Type	Revenue Contribution	Growth Rate
Modular Space	Turnkey Solutions	$467.8 million	3.8%
Portable Storage	Flexible Leasing	$133.6 million	-13.4%

High-quality customer service and support

WillScot emphasizes high-quality customer service, aiming to enhance customer satisfaction and retention. For the nine months ended September 30, 2024, the company reported Adjusted EBITDA of $778.4 million, representing a slight increase of 1% compared to the previous year. This stability in earnings, despite fluctuations in revenue, highlights the effectiveness of their customer support strategies amidst changing market conditions.

The company faced challenges in the portable storage segment, where average units on rent decreased by 27,551 or 18.3% year-over-year, reflecting a need for continuous improvement in customer engagement and service delivery.

Performance Metric	Value	Change
Adjusted EBITDA	$778.4 million	+1%
Units on Rent (Portable Storage)	122,730	-18.3%
Average Portable Storage Monthly Rental Rate	$265	+9.5%

WillScot Mobile Mini Holdings Corp. (WSC) - Business Model: Customer Relationships

Builds long-term relationships through flexible leasing agreements

The leasing model employed by WillScot Mobile Mini Holdings Corp. is centered on flexibility, catering to diverse customer needs. The average modular space monthly rental rate increased to $1,199 for the three months ended September 30, 2024, marking a rise of 6.1% year-over-year. This pricing strategy supports customer retention and attractiveness to new clients.

As of September 30, 2024, total average units on rent were 217,629, a decrease from 248,450 in the same period the previous year, indicating a shift in demand dynamics. The decrease in average modular space units on rent, down 3,270 units or 3.3%, reflects a cautious approach by customers amid fluctuating market conditions.

Offers ongoing support and maintenance services

WillScot Mobile Mini provides comprehensive support and maintenance services that enhance customer satisfaction. For the three months ended September 30, 2024, total revenues reached $601.4 million, a slight decline of 0.6% from the prior year. Despite this, the company reported a 75.8% increase in new unit sales revenue, reflecting effective service offerings that encourage repeat business.

The company’s delivery and installation revenue decreased by $0.8 million, or 0.7%, indicating a need for continuous improvement in service efficiency. The ongoing support structure is crucial, particularly in maintaining high levels of customer engagement and satisfaction.

Engages in customer feedback to enhance service offerings

WillScot actively engages with customers to gather feedback, a critical component for service enhancement. The total VAPS (Value-Added Products and Services) revenues for the three months ended September 30, 2024, reached $100.2 million, a marginal increase of 0.3% year-over-year. This stable revenue stream from VAPS showcases the effectiveness of customer feedback mechanisms in refining product offerings.

Furthermore, the average portable storage monthly rental rates increased to $265, up 9.5% year-over-year. This increase can be attributed to improved customer insights leading to better pricing strategies and service enhancements.

Metric	Q3 2024	Q3 2023	Change
Average Modular Space Monthly Rental Rate	$1,199	$1,130	$69 (6.1%)
Average Portable Storage Monthly Rental Rate	$265	$242	$23 (9.5%)
Total Revenue	$601.4 million	$604.8 million	($3.4 million, -0.6%)
Total Average Units on Rent	217,629	248,450	(30,821 units, -12.4%)
New Unit Sales Revenue Increase	$7.7 million	N/A	75.8%

WillScot Mobile Mini Holdings Corp. (WSC) - Business Model: Channels

Direct sales through company branches and online platforms

WillScot Mobile Mini utilizes a robust direct sales strategy through its company branches and online platforms. For the three months ended September 30, 2024, total revenues were $601.4 million, slightly down from $604.8 million in the same period of 2023, reflecting a decrease of $3.4 million, or 0.6%. The leasing revenue for this period was $455.6 million, while delivery and installation revenue reached $114.8 million.

The average modular space monthly rental rate was reported at $1,199, which indicates a year-over-year increase of $69, or 6.1%. Additionally, the average portable storage monthly rental rate increased to $265, reflecting a growth of $23, or 9.5%. The company reported an average of 122,730 portable storage units on rent, down from 150,281 units in the previous year, representing a decrease of 27,551 units, or 18.3%.

Partnerships with contractors and project managers

Partnerships with contractors and project managers are critical to WillScot's business model. Collaborative efforts with these stakeholders enhance the company's market reach and service delivery. In the nine months ending September 30, 2024, leasing revenue increased by $18.7 million, or 1.4%, driven by improved pricing and value-added product penetration. The company’s modular space leasing revenue accounted for 77.8% of consolidated revenue during this period.

Moreover, total average units on rent decreased from 256,744 to 221,619 units, highlighting challenges in demand largely attributed to decreased new construction project starts. This strategic partnership approach is essential for navigating market fluctuations and driving sales growth in a competitive landscape.

Marketing through industry events and trade shows

WillScot Mobile Mini actively markets its services through industry events and trade shows, enhancing brand visibility and customer engagement. The company recognizes the importance of these platforms in generating leads and fostering relationships with potential customers and partners. For the three months ended September 30, 2024, the company reported adjusted EBITDA from continuing operations of $266.9 million, a slight increase from $265.5 million in the same quarter of 2023.

The company’s marketing efforts also include showcasing its value-added products and services (VAPS), which contributed significantly to revenue. Total VAPS revenues increased by $0.3 million, or 0.3%, to $100.2 million for the three months ended September 30, 2024. This focus on VAPS is indicative of the company’s strategy to differentiate itself in a crowded market through enhanced service offerings.

Channel Type	Revenue (Q3 2024)	Revenue (Q3 2023)	Change (%)
Leasing Revenue	$455.6 million	$466.8 million	-2.4%
Delivery and Installation Revenue	$114.8 million	$115.6 million	-0.7%
New Unit Sales Revenue	$17.9 million	$10.2 million	75.8%
Rental Unit Sales Revenue	$13.2 million	$12.3 million	7.5%

WillScot Mobile Mini Holdings Corp. (WSC) - Business Model: Customer Segments

Construction companies

WillScot Mobile Mini Holdings Corp. serves a wide range of construction companies by providing modular space solutions and portable storage units. The construction sector is a primary customer segment due to the need for temporary office spaces, storage solutions, and site accommodations.

As of September 30, 2024, the average modular space monthly rental rate for construction-related services was $1,199, reflecting a year-over-year increase of 6.1%. The average utilization rate for modular space units in this segment was 62.1%.

The total average units on rent for modular space in the construction sector decreased by 3,270 units, or 3.3%, compared to the previous year.

Retail and wholesale businesses

Retail and wholesale businesses also represent a significant customer segment for WillScot. These clients utilize portable storage units for inventory management and modular spaces as temporary retail outlets or storage during renovations.

In the nine months ended September 30, 2024, the average portable storage monthly rental rate for retail businesses was $263, which is an increase of 16.4% compared to the same period in 2023. However, the average portable storage units on rent decreased by 31,603 units, or 20.0%, indicating a reduction in demand.

The average utilization rate for portable storage units in the retail and wholesale segment was 59.8%.

Government and educational institutions

Government and educational institutions are key clients for WillScot, particularly in providing modular classrooms, administrative offices, and storage solutions for various projects. These entities often require flexible space solutions for temporary needs.

As of September 30, 2024, WillScot's modular product revenue accounted for 77.8% of consolidated revenue, driven by significant contracts with government and educational sectors. The average modular space units on rent in this segment was 95,456 units, with an average utilization rate of 62.3%.

Customer Segment	Average Monthly Rental Rate	Average Units on Rent	Utilization Rate
Construction Companies	$1,199	94,899	62.1%
Retail and Wholesale Businesses	$263	126,163	59.8%
Government and Educational Institutions	$1,175	95,456	62.3%

WillScot Mobile Mini Holdings Corp. (WSC) - Business Model: Cost Structure

Equipment acquisition and maintenance costs

As of September 30, 2024, capital expenditures for rental equipment amounted to $206.99 million, up from $166.10 million during the same period in 2023, reflecting an increase of $40.89 million or approximately 24.6% . The depreciation of rental equipment for the nine months ended September 30, 2024, was $226.73 million, which is a significant increase of $36.18 million compared to $190.56 million in the previous year .

Operational expenses including SG&A

For the nine months ended September 30, 2024, Selling, General and Administrative (SG&A) expenses rose to $493.04 million, representing an increase of $43.38 million or 9.6% from $449.66 million in the prior year . The increase in SG&A was largely driven by discrete expenses for one-time projects, primarily legal and professional fees related to the terminated acquisition of McGrath, which accounted for $42.7 million of the total increase . Other notable increases included $11.8 million for real estate and occupancy costs and $2.1 million for stock compensation expense .

Costs associated with delivery and installation services

Delivery and installation costs for the nine months ended September 30, 2024, totaled $250.79 million, a rise of $12.35 million compared to $238.44 million in the same period of 2023 . This increase is attributed to a combination of heightened demand for these services, despite a slight decrease in overall leasing revenues . The average modular space monthly rental rate increased to $1,199, which is a 6.1% increase year-over-year .

Cost Category	2024 Amount (in millions)	2023 Amount (in millions)	Change (in millions)	Percentage Change
Capital Expenditures for Rental Equipment	$206.99	$166.10	$40.89	24.6%
Depreciation of Rental Equipment	$226.73	$190.56	$36.18	19.0%
SG&A Expenses	$493.04	$449.66	$43.38	9.6%
Delivery and Installation Costs	$250.79	$238.44	$12.35	5.2%

WillScot Mobile Mini Holdings Corp. (WSC) - Business Model: Revenue Streams

Recurring lease income from modular and portable units

For the three months ended September 30, 2024, leasing revenue totaled $455.6 million, reflecting a decrease of $11.2 million or 2.4% compared to the same period in 2023. Modular space leasing revenue contributed $254.5 million, while portable storage leasing revenue was $85.7 million. The average modular space monthly rental rate increased by $69 or 6.1% to $1,199, and the average portable storage monthly rental rate increased by $23 or 9.5% to $265.

Revenue from value-added products and services

Value-added products and services (VAPS) revenue for the three months ended September 30, 2024, amounted to $100.2 million, an increase of $0.3 million or 0.3% year-over-year. For the nine months ended September 30, 2024, total VAPS revenues reached $296.6 million, reflecting a $4.9 million or 1.7% increase from the previous year.

Sales of new and used rental units

Sales revenue from new units for the three months ended September 30, 2024, was $17.9 million, marking an increase of $7.7 million or 75.8% compared to the same period in 2023. Rental unit sales revenue increased to $13.2 million, which is a $0.9 million or 7.5% increase year-over-year. For the nine months ended September 30, 2024, new unit sales totaled $52.7 million, while rental unit sales reached $42.4 million.

Revenue Stream	Q3 2024 Revenue (in millions)	Q3 2023 Revenue (in millions)	Change (%)
Leasing Revenue	$455.6	$466.8	-2.4%
Modular Space Leasing	$254.5	$243.9	4.3%
Portable Storage Leasing	$85.7	$98.2	-12.6%
VAPS Revenue	$100.2	$99.9	0.3%
New Unit Sales	$17.9	$10.2	75.8%
Rental Unit Sales	$13.2	$12.3	7.5%

Overall, the total revenue for the three months ended September 30, 2024, was $601.4 million, a decline of $3.4 million or 0.6% from $604.8 million in Q3 2023.

Article updated on 8 Nov 2024

Resources:

1. WillScot Mobile Mini Holdings Corp. (WSC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of WillScot Mobile Mini Holdings Corp. (WSC)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View WillScot Mobile Mini Holdings Corp. (WSC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.