2015 Equipment Rental Industry Forecast to Grow 8.1%

A strengthened economy, growth in employment and lower gas prices at the pump, generating increased disposable income, all spell favorable news for consumers as well as the equipment rental industry in the United States.

Overall, the American Rental Association (ARA), through its ARA Rental Market Monitor™ subscription service, forecasts equipment rental industry total revenue growth of 8.1 percent in 2015 to reach $38.5 billion in the U.S., including all three segments — construction/industrial, general tool, and party and event.

Construction/industrial rental revenue is now forecast to increase 8.5 percent in 2015 to $26 billion, with general tool projected to grow 8.3 percent to $9.9 billion this year and party event to show a 4.5 percent increase to $2.7 billion.

“The equipment rental industry continues to grow at a fast pace with strong equipment rental demand within all markets,” says Christine Wehrman, ARA’s executive vice president and CEO. “While the news focuses on the energy sector of the economy, our industry is fortunate to have a balanced marketplace in which rental is in demand and energy represents only one of those markets. Rental companies have always been flexible in meeting customer demand by adapting quickly to changing markets. The industry growth forecast remains more than double that of the overall economy.”

“The number of positive offsets in commercial construction, multifamily housing, healthcare and manufacturing help to counteract the drop in oil prices and contribute to the strong 2015 growth projections for the equipment rental industry,” says Scott Hazelton, managing partner, IHS Inc. (NYSE: IHS), a leading global source of critical information and insight and the company that compiles data for the ARA Rental Market Monitor.

Also, a decrease in oil prices does not mean the energy sector growth stops. “Natural gas and oil extraction growth will likely be slower in 2015 and 2016, but it is important to note that extraction actually increases, just at a slower rate, even with lower oil prices,” says Hazelton.

Projected revenue increases for equipment rental due to more direct and indirect demand from the energy sector may be lower now than previously expected, but Hazelton says the other rising segments for the equipment rental industry will remain a positive factor for 2016 as well.

“IHS already had projected softness in the energy markets in 2016, so the quick drop in oil prices now presents less of a change in the overall forecast for the equipment rental industry,” says Hazelton.

The forecast for Canada calls for 3.7 percent growth in 2015 to $4.1 billion, with growth of 6.3 percent expected in 2016 to nearly $4.4 billion.

“We continue to monitor our industry on a quarterly basis to ensure that our members have the best information available in a changing economic environment,” says Wehrman.

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 more than 9,300 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 insight, analytics and expertise in critical areas that shape today’s business landscape. Businesses and governments in more than 150 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 sustainable, profitable growth and employs about 8,800 people in 32 countries around the world.

ARATom Hubbell, 800-334-2177, Ext. 248; 309-277-4248tom.hubbell@ararental.org

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