The US equipment rental market is expected to grow 9.8% in 2014, according to a report released this week by the American Rental Association. And it is expected to increase even further, to 11.8%, in 2015.
During 2013, the US equipment rental industry grew 7.3% over 2012, with $33.6 billion in revenues projected, the ARA report stated. The reason for the strong forecast was anticipated growth in residential construction as the nation continues to bounce back from the housing crisis of the past several years.
“The US equipment rental market is expected to continue its upward trajectory and show significant growth through 2017,” according to a summary of the report, called the ARA’s Rental Market Monitor. “Strong growth in real residential construction through 2015 will fuel the construction and industrial equipment segment.”
Strong Industry Growth Throughout North America
Canada’s equipment rental industry also will see growth, up $4.6 billion in revenue in 2013, an increase of 3.1 %. Combined North American equipment rental revenues will reach $38.2 billion in 2013, according to the report. By 2017, North American equipment rental revenue will top $50 billion, with revenues of $46.3 billion in the US and another $5.3 billion in Canada.
New housing starts, combined with anticipated economic growth as the country lumbers out of the recession, makes the equipment rental industry’s future bright, at least for the next few years.
Christine Wehrman, ARA CEO and executive vice president, said there is no limit to the potential growth of the rental equipment industry. “The industry continues to build customer demand, which drives the growth of the equipment rental industry,” Wehrman said. “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 Equipment Less Impacted by Recession Than Other Industries
Scott Hazelton, a senior partner with Lexington, Mass., based IHS Global Insight — the company that compiles data and analyses for the ARA Rental Market Monitor — said equipment rental has remained strong even when other construction-related industries were receding during the past several years.
“Rental has grown during the anemic economic recovery through increased penetration,” Hazelton said. “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 gains by 2014.
ARA is an international trade association for the equipment rental industry. It is based in Moline, Illinois. It has more than 8,600 members in the rental business and another 1,000 members who are manufacturers and suppliers.