Equipment Rental Industry on track for record revenues
This entry was posted on May 10, 2016.
The American Rental Association (ARA) released its second quarter outlook for the equipment rental industry last week. The projection indicates that industry revenue in the United States will increase by 5.6 percent for the remainder of this year and increase by 4.9 percent in 2017.
These numbers cover all three segments of the equipment rental industry, including construction/industrial, general tool and party and event.
While the projection is a slight change from the first quarter forecast, total revenue for the industry as a whole is still expected to reach record levels over the next four years. The ARA projects that total revenue for equipment rental industry will reach nearly $48 billion this year and climb to $55.6 billion by 2019.
“The adjustments in our forecast reflect changes in the outlook for the entire economy. The fact that the equipment rental industry continues to have revenue growth more than double that of the U.S. economy as a whole underscores the positive aspects of this latest forecast by IHS Global,” says John McClelland, ARA vice president for government affairs and chief economist.
“The U.S. economy continues to expand. The wild card is that much of the global economy has failed to ignite. Sluggish growth from U.S. trading partners continues to weigh on oil prices, preserve the high value of the dollar and subdue business confidence in key industries,” says Scott Hazelton, managing partner, IHS Global, Lexington, Mass., the respected global forecasting firm that compiles data and analyses for the ARA Rental Market Monitor.
“The lingering weakness in manufacturing and energy markets will limit rental revenue growth somewhat more than expected, but construction and home renovation remain strong. We have lowered the national growth rate by about 150 basis points, but the outlook remains fundamentally strong at about twice the growth rate of gross domestic product (GDP) in the U.S.,” Hazelton says.
Tent and Table can provide you with the tools you need to expand your commercial party and event rental business and take advantage of these encouraging trends.