MOLINE, Ill. - The American Rental Association (ARA) adjusted its five-year forecast to project that U.S. equipment and event rental industry revenue will continue to grow on an annual basis, resulting in total revenue of $64.1 billion in 2022.
The May 2018 update of ARA’s quarterly Rentalytics report is the first to project larger increases in revenue across the board, after the past few years showing minor fluctuations. The latest update expects revenue to total $52.3 billion in 2018 instead of the $51.5 billion forecast in February.
“The economy is growing somewhat faster than expected and much of that is related to capital spending,” said Scott Hazelton, managing director of IHS Markit in Cambridge, Massachusetts, the information provider that compiles data and analysis for ARA Rentalytics. “While construction is not particularly strong, it has improved. On a year-over-year basis, through the April Census report, construction spending had picked up, with the six-month annualized increase of 8.7%, up significantly from the 12-month increase of 3%. Despite uncertainty on tariffs, trade and Middle East policy dangers, business and consumer sentiment remain strong.”
According to ARA Rentalytics, U.S. construction rental revenues will grow by 6.1% to reach $36.2 billion and to increase another 5.7% in 2019, 5.3% in 2020, 4.2% in 2021, and 3.5% in 2022.
The general tool forecast calls for 5.7% growth in 2018 to $12.5 billion with growth of 6.5% in 2019, 8.7% in 2020, 7% in 2021, and 6.5% in 2022.
In Canada, the forecast calls for equipment and event rental revenue to total $5.4 billion in 2018 and grow each year to reach $6.3 billion in 2022.
The construction rental revenue forecast for Canada is for $4.3 billion in 2018, up 4.7 percent, with growth rates of 4.2% in 2019, 5.3% in 2020, 4.7% in 2021, and 3% in 2022.
For general tool in Canada, the forecast is for $860.1 million in rental revenue in 2018, up 4.5%, with expected increases of 2.9% in 2019, 3.5% in 2020, 2.7% in 2021, and 0.7% in 2022.
“This has been a slow, but durable expansion and rental has held its own in penetration within construction markets and there is anecdotal evidence to suggest that it has gained penetration outside rental markets,” Hazelton said. “The rental industry has been able to not only maintain pace with economic growth but exceed it.”
Lift & Access is part of the Catalyst Communications Network publication family.
