Hardware Retailing The Industry's Source for Insights and Information
According to the latest forecast released by the American Rental Association (ARA), the equipment rental industry should experience stable growth through the next few years. Reflecting the continued growth in residential and nonresidential construction combined with a downward shift in energy market investments, ARA predicts the equipment rental industry should see total revenue increases of 6.6 percent in 2016 and 5.6 percent in 2017.
“There is no doubt that the secular shift to renting equipment continues in the markets those in the equipment rental industry serve. Many customers continue to take advantage of the benefits that equipment rental offers,” says Christine Wehrman, ARA’s CEO and executive vice president.
“Rental companies also are adept at identifying customers and relocating equipment to different areas to take advantage of increased demand. This is a dynamic industry that continues to have a bright future for revenue growth.”
The forecasted numbers have been revised to reflect the latest data released by the federal government from the 2012 U.S. Economic Census. According to revised numbers, which includes construction/industrial, general tool/homeowner and party/special event categories, total rental revenue in 2012 was $36.5 billion compared to the previous estimate of $31.3 billion. That changed the forecast for 2016 to $48.2 billion and up to $53.7 billion in 2019.
“The residential construction market is expanding and, in some markets, housing literally cannot be built fast enough and new home prices are rising,” says Scott Hazelton, managing director for IHS Economics, a respected research firm that helps ARA compile its forecast numbers.
“The passage of the Highway Bill has improved the outlook for infrastructure-related spending for the first time since the stimulus package of 2009. These considerations bode well for construction/industrial and general tool rental.”
