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.
This figure represents a 7.3% increase over 2012, with revenue growth reaching 7.9% in the fourth quarter, according to the latest quarterly forecast.
In the United States, 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. Strong growth in real residential construction through 2015 will fuel the construction and industrial equipment segment,” reads the analysis from the Rental Market Monitor.
Projections call for 9.8% growth in 2014 and 11.8% growth in 2015.
In Canada, the equipment rental industry is forecast to generate nearly $4.6 billion in revenue in 2013, a 3.1% increase. In total for North America, equipment rental revenues in 2013 are expected to reach $38.2 billion.
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.
“Rental has grown during the anemic economic recovery through increased penetration. 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,” said Scott Hazelton, a senior partner with IHS Global insight, which compiles data and analyses for the ARA Rental Market Monitor.
The ARA Rental Market Monitor is a subscription-based service for American Rental Association (ARA) members provided by ARA and Rental Management as part of a partnership with ISH Global Insight, one of the world’s most respected economic forecasting firms based in Lexington, Mass.