Rental Revenue to Top $38 Billion in 2013
The equipment rental industry inthe United States is expected to generate $33.6 billion in revenue in 2013,according to the American Rental Association’s (ARA) latest forecast from theARA Rental Market Monitor updated in May. This figure represents a 7.3 percentincrease over 2012 with revenue growth reaching 7.9 percent in the fourthquarter according to the latest quarterly forecast.
In the United States, theconstruction market and consumer spending are expected to be the most importantdrivers of growth of the equipment rental market in 2013. “The U.S. equipmentrental market is expected to continue its upward trajectory and showsignificant growth through 2017. Strong growth in real residential constructionthrough 2015 will fuel the construction and industrial equipment segment, whichis projected to grow 9.8 percent in 2014 and 11.8 percent in 2015,” accordingto the U.S. economic analysis from the ARA Rental Market Monitor.
In Canada, the equipment rentalindustry is forecast to generate nearly $4.6 billion in revenue in 2013, a 3.1percent increase. In total for North America, equipment rental revenues in 2013are expected to reach $38.2 billion.
By the end of the current five-yearforecast in 2017, North American equipment rental revenue is expected tosurpass $50 billion to reach $51.6 billion, with U.S. rental revenue at $46.3billion and rental revenue in Canada at $5.3 billion.
“The industry continues to buildcustomer demand, which drives the growth of the equipment rental industry.Listening to ARA members from around the country and looking at the forecast ofIHS Global Insight, there is unlimited potential for the equipment rentalindustry,” says ARA executive vice president and CEO Christine Wehrman.
“Rental has grown during theanemic economic recovery through increased penetration. As industrial andconstruction markets continue to improve, rental will see further growth from alarger share of the equipment market, leading to double-digit revenue gains by2014,” says Scott Hazelton, a senior partner with IHS Global insight, whichcompiles data and analyses for the ARA Rental Market Monitor.
The ARA Rental Market Monitor is asubscription-based service for American Rental Association (ARA) membersprovided by ARA and Rental Management as part of a partnership with ISH GlobalInsight, one of the world’s most respected economic forecasting firms based inLexington, Mass.
