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The equipment rental industry stands poised to set an industry record for revenues in 2015, according to the latest updated industry forecast from the American Rental Association (ARA).
The latest quarterly review in the ARA Rental Market Monitor predicts that the rental industry will reach new heights as a result of a gradual improvement in the economy as and several sectors.
Industry revenue is expected to grow by 7.9% this year, reaching USD38.5 billion in the US. And the positive trend is tipped to continue, with steady growth of 7.2% in 2016, 8% in 2017, 7.9% in 2018 and 6.8% in 2019 to reach USD51.3 billion.
“Those in the rental industry have learned how to thrive in different economies and customers continue to learn that renting equipment is a smart move as market conditions today can change rapidly,” says Christine Wehrman, ARA’s executive vice president and CEO.
“Even as several forces, including harsh weather, held back US economic growth in gross domestic product (GDP) to 0.2% in the first quarter, total rental revenue was up 4.9% in the same time period and is expected to exceed 9% in the second half of the year,” Wehrman says.
Construction/industrial rental revenue is now forecast to increase 8.2% in 2015 to USD25.9 billion, with general equipment hire projected to grow 7.9% to USD9.8 billion this year.
“The equipment rental industry will achieve its new peak level as a result of a prolonged gradual improvement in the economy as a whole, and construction, industrial and consumer markets, in particular,” says Scott Hazelton, managing director, IHS Economics and Country Risk, the forecasting firm that compiles data for the ARA Rental Market Monitor.
“There also was some lift from energy markets, which are slowing, but the majority of the growth has come from solid fundamentals. Given a current level of activity based on solid ground, an economy that continues to improve will lead to rental revenues that are achievable and lasting,” Hazelton says.
The American Rental Association represents owners of equipment rental businesses and the manufacturers and suppliers of construction/industrial, general tool and party/event rental equipment. ARA members include more than 9,400 rental businesses and nearly 1,000 manufacturers and suppliers.