MOLINE, Ill.--(BUSINESS WIRE)--Revenue growth for the equipment rental industry in the United States will continue to outperform the general economy in 2013. According to the latest American Rental Association (ARA) forecast from the ARA Rental Market Monitor™ updated last week, industry revenue will grow another 7.6 percent to reach $33.5 billion next year.
The forecasted growth rate for the equipment rental industry — including construction/industrial, general tool/homeowner and party/special event segments — is more than four times the expected 2013 growth in gross domestic product (GDP) in the United States.
This, however, is just the beginning. Equipment rental industry revenue is forecasted to grow even faster in 2014 and 2015 with total annual revenues surpassing $45.3 billion in the U.S. before the end of 2016.
“Next year will be a year of transition to 2014 and beyond and it will get even better for the equipment rental industry,” says Scott Hazelton, director of consulting for IHS Global Insight, which compiles data for the ARA Rental Market Monitor service.
“The equipment rental industry will continue to be on the leading edge of the U.S. economic recovery,” says Christine Wehrman, ARA’s executive vice president and CEO.
“ARA continues to track the market via IHS Global Insight data and reported through the ARA Rental Market Monitor. The outlook through 2016 reflects significant growth, with double-digit increases forecasts for 2014 and 2015. Our members have an excellent opportunity in the coming year and beyond to grow their businesses and continue to show customers the value of rental,” Wehrman says.
ARA also forecasts a significant increase in equipment investment by equipment rental companies of more than 20 percent in 2014 and 2015.
“Our forecasts show growth in construction spending will be double-digit in 2014 and 2015, so there will be strong demand with a broad-based recovery,” Hazelton says.
“If you have a fleet designed for the present market, you will need to pick that up in 2014 to meet increased demand. In a recovery, you see increases and plateaus. You will see an increase next year and more in 2014 with a new peak or plateau in 2015 as higher demand and higher rental penetration pushes up revenue and investment,” he says.
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 8,500 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 rental equipment 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 employs more than 6,000 people in more than 30 countries around the world.