North American Rental Revenue to Reach $38 Billion in 2013
MOLINE, Ill. -- November 4, 2013
Total equipment rental revenue in North America for 2013 is expected to reach
$38.0 billion, according to the latest figures released by the American Rental
Association (ARA) from its ARA Rental Market Monitor™ service updated in late
October. This figure represents a 6.2 percent increase over 2012 with fourth
quarter revenue growth projected to be 7.1 percent.
The figure includes revenue for all three segments of the equipment rental
industry — construction/industrial, general tool/DIY and party/special event —
in both the U.S. and Canada combined.
In the U.S. alone, equipment rental revenue is projected to grow 6.5 percent
in 2013 to reach $33.3 billion.
“The general economy in the U.S. has slowed down slightly this year with the
gross domestic product (GDP) now forecast to grow 1.5 percent in 2013. That
means equipment rental industry revenue continues to grow at more than four
times the general economy,” says Christine Wehrman, ARA’s executive vice
president and CEO.
“The industry remains vibrant, strong and will benefit even more in the coming
years due to nonresidential growth, supplemented with residential construction
growth and the strong influence of the energy boom in North America. We expect
revenue in the U.S. to grow 8.4 percent in 2014 and 11.3 percent in 2015,”
According to the late October update, the ARA Rental Market Monitor North
American Economic Analysis provided by IHS Global Insight projects revenue
growth to accelerate in all segments through 2015 before leveling off in 2016
and 2017. The general tool segment will show the highest compound annual
growth rate (CAGR) at 10.1 percent over the five-year forecast while
construction and industrial equipment revenue is forecast to see a CAGR of 7.8
percent between 2013 and 2017.
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 2014.
According to the U.S. economic analysis from the ARA Rental Market Monitor™
and IHS Global Insight, the U.S. equipment rental market is expected to
continue its upward trajectory and show strong growth through 2017. Strong
growth in residential and commercial construction through 2015 is expected to
fuel the construction and industrial equipment segment, which is projected to
grow 9.1 percent in 2014 and 10.5 percent in 2015.
The U.S. general tool segment is expected to grow 7.9 percent in 2014 and 15.5
percent in 2015. The ARA Rental Market Monitor also forecasts party and event
rentals to benefit from continued improvement in consumer spending with rental
revenue projected to show a 3.2 percent CAGR over the five-year forecast to
Overall in the U.S., total equipment rental revenue is expected to grow at a
CAGR of 8.6 percent between 2013 and 2017, exceeding pre-recession totals in
2015 and reaching $46.3 billion in 2017.
ARA members who are subscribers to the service also participated in a webcast
last week with Scott Hazelton, a senior partner with IHS Global Insight,
outlining the key economic factors impacting the equipment rental industry.
Hazelton said the U.S. economic expansion, after a slowdown in the third
quarter this year, will pick up in 2014 with homebuilding to surge through
early 2016. He also said the North American energy boom will continue to
create jobs, investment and a competitive advantage in manufacturing, which
will benefit equipment rental companies.
Investment in equipment by equipment rental companies also is expected to grow
in 2014, but jump in 2015 to surpass $14 billion.
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
8,600 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 is committed to sustainable, profitable growth
and employs approximately 8,000 people in 31 countries around the world.
IHS is a registered trademark of IHS Inc. All other company and product names
may be trademarks of their respective owners. Copyright © 2013 IHS Inc. All
American Rental Association
Tom Hubbell, 1-800-334-2177 ext. 248
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