U.S. Equipment Rental Revenue Projected to Exceed $51 Billion in 2018
August 11 2014 - 10:15AM
Business Wire
The equipment rental industry in the United States is expected
to generate $35.8 billion in revenue and outpace gross domestic
product (GDP) by more than four times in 2014, according to the
American Rental Association’s (ARA) latest forecast from the ARA
Rental Market Monitor™. Economic data and analysis for ARA
Rental Market Monitor are compiled by IHS Inc., (NYSE: IHS),
the leading global source of critical information and insight.
In the U.S., total equipment rental revenue is forecast to grow
7.6 percent in 2014 to reach $35.8 billion, 10.5 percent in 2015 to
reach $39.6 billion and another 10.2 percent in 2016 to reach $43.6
billion, surpassing the previous industry record of $36.9 billion
in 2007. The growth rate is expected to be 8.9 percent in 2017 and
7.7 percent in 2018, with total rental revenue of $51.2
billion.
“The U.S. economy slowed more than expected in the first half of
the year, but equipment rental demand has remained strong and
rental growth will still handily outperform the overall economy.
Looking forward, commercial construction and housing starts will
contribute to growth in the construction and industrial and general
tool segments,” says Scott Hazelton, managing director with IHS
Global Insight.
Over the next two years, the construction and industrial segment
and the general tool segment will experience double-digit growth in
U.S. rental revenue. In 2015, construction and industrial rental
revenue is projected to increase 10.7 percent and general tool 11.7
percent and again in 2016 with increases of 10.4 percent and 11.6
percent respectively.
The party and event segment is expected to continue it same
steady growth, with revenue increasing 4.2 percent in the U.S. in
2014 to reach $2.6 billion.
The forecast for Canada calls for 5.2 percent growth in 2014 to
$4.9 billion, with growth of 6.0 percent in 2015, 6.6 percent in
2016, 3.5 percent in 2017 and 3.6 percent in 2018 to total $5.9
billion at the end of the latest forecast.
It is also expected that rental companies in the U.S. will
continue to invest more than 30 percent of its revenue in new
equipment over the next five years. Total investment, according to
the ARA Rental Market Monitor, is projected to reach $12.1
billion in 2014 and grow to $16.1 billion by 2018.
About ARA: (www.ARArental.org) The American
Rental Association, Moline, Ill., is an international trade
association for owners of equipment rental businesses and the
manufacturers and suppliers of construction/industrial, general
tool and party/event rental equipment. ARA members, which include
nearly 9,000 rental businesses and nearly 1,000 manufacturers and
suppliers, are located in every U.S. state, every Canadian province
and more than 30 countries worldwide. Founded in 1955, ARA is the
source for information, advocacy, risk management, business
development tools, education and training, networking and
marketplace opportunities for the equipment rental industry
throughout the world.
About IHS (www.ihs.com)IHS (NYSE: IHS) is
the leading source of information, insight and analytics in
critical areas that shape today’s business landscape. Businesses
and governments in more than 165 countries around the globe rely on
the comprehensive content, expert independent analysis and flexible
delivery methods of IHS to make high-impact decisions and develop
strategies with speed and confidence. IHS has been in business
since 1959 and became a publicly traded company on the New York
Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA,
IHS is committed to long-term, sustainable growth and employs more
than 8,000 people in 31 countries around the world.
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Copyright © 2014 IHS Inc. All rights reserved.
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ARATom Hubbell, 800-334-2177, Ext. 248;
309-277-4248tom.hubbell@ararental.org
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