Equipment Rental Revenue Shows Ongoing Growth
Despite reduced demand in the oil and gas market, equipment rentals are poised to set a revenue record in 2015, according to the American Rental Association's updated industry forecast. Though modified slightly from February, the industry is projecting 7.9% total revenue growth for construction/industrial, general tool, and party and event.
ARA’s current five-year forecast calls for steady growth of 7.2 % in 2016, 8 % in 2017, 7.9 % in 2018 and 6.8 % in 2019 to reach $51.3 billion. Construction/industrial rental revenue is now forecast to increase 8.2 % in 2015 to $25.9 billion, with general tool projected to grow 7.9 % to $9.8 billion this year and party event to show a 4.7 % increase to $2.7 billion.
Sales into the rental channel by equipment manufacturers also continue to grow, meaning the penetration rate could climb higher this year. In addition, ARA is forecasting an increase of 8.3 %in investment in equipment by rental companies this year.
“Those in the rental industry have learned how to thrive in different economies and customers continue to learn that renting equipment is a smart move as market conditions today can change rapidly,” says Christine Wehrman, ARA’s executive vice president and CEO.
“Even as several forces, including harsh weather, held back U.S. economic growth in gross domestic product (GDP) to 0.2 % in the first quarter, total rental revenue was up 4.9 % in the same time period and is expected to exceed 9 % in the second half of the year,” Wehrman says.
You can read the ARA's complete article here.
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