Despite today’s mixed and uncertain economic indicators, the latest updated quarterly American Rental Association (ARA) forecast expects equipment rental revenue to rise 11.2% in 2022 and reach $55.9 billion in the United States.
The update, released Aug. 3, projects equipment rental revenue, including the construction and general tool segments, to grow 11.2% to nearly reach $55.9 billion in 2022.
ARA expects growth of 6.2% in 2023, 2.5% in 2024, 3.3% in 2025 and 3.7% in 2026 to total more than $65.1 billion.
Tom Doyle, ARA vice president for program development, says that despite today’s challenging economy, rental revenue continues to experience significant growth.
“The longer-term forecast, while showing slower growth than this year, remains bullish. It is generally a good time to be in the equipment rental industry,” Doyle said.
He continued, “In these times of higher uncertainty, it is prudent to closely watch the driving factors to the forecast for changes that will affect build schedules for original equipment manufacturers (OEMs) or demand for rental companies. Depending on how long we have high inflation, supply chain constraints, labor shortages and climbing interest rates, those econometric drivers can have an impact on the rest of 2022 and the outlook for 2023.”
For construction equipment rental revenue, the forecast calls for a 12.5% increase in 2022 to surpass $41.6 billion, with growth slowing to 7% in 2023, 2% in 2024, 3% in 2025. and 3 percent in 2026.
General tool growth is expected to be 7.4% in 2022 and then remain fairly steady with 5% growth in 2023, 3% in 2024, 5% in 2025, and 5% in 2026.
For Canada, the ARA forecast for equipment rental revenue mirrors the positive expectations of the United States. It calls for 14.4% growth in 2022 to reach nearly $4.7 billion, followed by growth of 6% in 2023, 2% in 2024, 3.4% in 2025 and $3.3% in 2026 to exceed $5.4 billion.
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