U.S. Equipment Rental Revenue Forecasts Growth This Year, Record High Next Year
The equipment rental industry in the United States is forecast to grow 7.6% this year, and 10.5% next year, according to the American Rental Association’s (ARA) latest data from the ARA Rental Market Monitor. This year, revenues are expected to hit $35.8 billion, then move to $39.5 billion next year. The previous record was $36.9 billion, set in 2007, according to the association.
Economic data and analysis for the ARA Rental Market Monitor are compiled by IHS Global Insight.The study projects growth through 2018: 10.2 percent in 2016, another 8.9% in 2017 and 7.7 % in 2018, taking total rental revenue to $51.2 billion.
“The U.S. economy slowed more than expected in the first half of the year, but equipment rental demand has remained strong and rental growth will still handily outperform the overall economy. Looking forward, commercial construction and housing starts will contribute to growth in the construction and industrial and general tool segments,” says Scott Hazelton, managing director with IHS Global Insight.
Over the next two years, the construction and industrial segment and the general tool segment will experience double-digit growth in U.S. rental revenue. In 2015, construction and industrial rental revenue is projected to increase 10.7 percent and general tool 11.7 percent and again in 2016 with increases of 10.4 percent and 11.6 percent respectively.
It also is expected that rental companies in the U.S. will continue to invest more than 30 percent of their revenue in new equipment over the next five years. Total investment, according to the ARA Rental Market Monitor, is projected to reach $12.1 billion in 2014 and grow to $16.1 billion by 2018.
Here's the complete news release.
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