Rental revenue expected 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," according to the U.S. economic
analysis from the ARA Rental Market
Monitor. "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."
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.
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.
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,"
said Christine Wehrman, ARA's executive
vice president and CEO. "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."
"Rental has grown during the anemic
economic recovery through increased
penetration," said Scott Hazelton, a senior
partner with IHS Global insight, which
compiles data and analyses for the ARA
Rental Market Monitor. "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."
The ARA Rental Market Monitor is
a subscription-based service for ARA
members provided by ARA and Rental
Management as part of a partnership
with Lexington, Mass.-based ISH Global
Insight, one of the world's most respected
economic forecasting firms.
OUTDOOR POWER EQUIPMENT
JULY 2013
11