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HIRE AND RENTAL NEWS • AUGUST 2016
The numbers are slightly modified when
compared to the first quarter forecast,
but continue to tell a positive story about
equipment rental’s future.
Total revenue in the US, including the
three segments of the equipment rental
industry – construction/industrial, general
tool, and party and event – in 2016 is
expected to reach a record $47.9 billion
and climb to an unprecedented $55.6
billion in 2019.
“Following the recession, we decided to
update our forecast on a quarterly basis
so subscribers to the ARA Rental Market
Monitor service would have up-to-date
information to help with managing their
businesses,” Christine Wehrman, ARA’s
CEO and Executive Vice President said.
“Things can change so rapidly and a
forecast can be quickly outdated. While
there may not be a lot of variation quarter
Equipment rental industry stays on course for record revenues in 2016
The American Rental Association (ARA), which offers quarterly updates to its five-year
forecast for equipment rental industry revenue to reflect more current economic factors,
has released its second quarter outlook, which calls for continued revenue growth of 5.6%
in 2016 and 4.9% in 2017 in the US.
to quarter, it can help us spot trends
faster and take advantage of market
conditions,” Christine said.
The forecast for Canada now calls for a
2.2% decrease in total rental revenues to
$4.83 billion because of a 2.9% decrease
in construction and industrial equipment
rental revenue in 2016. General tool is
expected to show an increase of 0.8%
and party and event is forecasted to be
up 0.5% in 2016. The trend in Canada
is expected to reverse in 2017, with
Canadian equipment rental revenue
expected to show a 4.7% increase and
grow in successive years to reach $5.64
billion in 2019.
In the US, several factors also pose
potential risk to the industry’s growth,
including unexpected government policy
changes, oil price changes and more.
“The fact the equipment rental industry
continues to have revenue growth more
than double the US economy as a whole
underscores the positive aspects of this
latest forecast by IHS,” John McClelland,
ARA Vice President for government
affairs and chief economist said.
“The US economy continues to expand.
The wild card is much of the global
economy has failed to ignite. Sluggish
growth from US trading partners
continues to weigh on oil prices, preserve
the high value of the dollar and subdue
business confidence in key industries,”
Scott Hazelton, Managing Partner, IHS
Global Insight, Lexington, Mass, said,
from the respected global forecasting
firm that compiles data and analyses for
the ARA Rental Market Monitor.
Visit: www.ARArental.org (Rental Market
Monitor in the drop-down menu under
‘Business Resources’).
EQUIPMENT SHOWCASE