Rental Revenue to Top $38 Billion in 2013
The equipment rental industry in the United States is expected to generate $33.6 billion in revenue in 2013, according to the American Rental Association’s (ARA) latest forecast from the ARA Rental Market Monitor, updated in May. This figure represents a 7.3 percent increase over 2012, with revenue growth reaching 7.9 percent in the fourth quarter according to the latest quarterly forecast.
In the U.S., the construction market and consumer spending are expected to be the most important drivers of growth of the equipment rental market in 2013. “The U.S. equipment rental market is expected to continue its upward trajectory and show significant growth through 2017. Strong growth in real residential construction through 2015 will fuel the construction and industrial equipment segment, which is projected to grow 9.8 percent in 2014 and 11.8 percent in 2015,” according to the U.S. economic analysis from the ARA Rental Market Monitor.
In Canada, the equipment rental industry is forecast to generate nearly $4.6 billion in revenue in 2013, a 3.1 percent increase. In total for North America, equipment rental revenues in 2013 are expected to reach $38.2 billion.
By the end of the current five-year forecast in 2017, North American equipment rental revenue is expected to surpass $50 billion to reach $51.6 billion, with U.S. rental revenue at $46.3 billion and rental revenue in Canada at $5.3 billion.
“The industry continues to build customer demand, which drives the growth of the equipment rental industry. Listening to ARA members from around the country and looking at the forecast of IHS Global Insight, there is unlimited potential for the equipment rental industry,” says Christine Wehrman, ARA’s executive VP and CEO.
“Rental has grown during the anemic economic recovery through increased penetration. As industrial and construction markets continue to improve, rental will see further growth from a larger share of the equipment market, leading to double-digit revenue gains by 2014,” says Scott Hazelton, a senior partner with IHS Global insight, which compiles data and analyses for the ARA Rental Market Monitor.
The ARA Rental Market Monitor is a subscription-based service for American Rental Association (ARA) members provided by ARA and Rental Management as part of a partnership with ISH Global Insight, an economic forecasting firm based in Lexington, Mass.