Hire and Rental News - February 2016

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ACCESS in ACTION
FEBRUARY 2016
VOL17 NO 3
6,953 (Audit period September 2015)
CAB Member since March 2010
ELEVATING WORK PLATFORM ASSOCIATION INC
ABN 70 093 630 847
EWPA
PO Box 1304, Mona Vale NSW 1660
Tel: 02 9998 2222 Fax: 02 9998 2299
Email:
Web:
THE BOARD
President: Rick Mustillo
Tel: 02 9817 7610 Fax: 02 9817 7630
Vice President: Mitch Ely
Tel: 07 3456 4508 Fax: 07 3456 4400
Past President: Tim Nuttall
Tel: 03 9547 7700 Fax: 03 9547 7766
Chief Executive Officer: James Oxenham
Tel: 0410 704 979
Operations Manager: Nicolas Chiew
Tel: 0410 468 468
NSW President: John Glover
Tel: 02 9735 7600 Fax: 02 9735 7699
VIC President: Tim Hille
Tel: 03 9555 1116 Fax: 03 9555 3332
QLD President: Richard Gannon
Tel: 07 3277 7255 Fax: 07 3277 8611
SA President: Ben Pritchard
Tel: 08 8262 1000 Fax: 08 8262 1697
WA President: Will Reilly
Tel: 08 9456 4400 Fax: 08 9456 4411
TRAINING DIRECTOR
Phil Middleton
Tel: 02 9622 6060 Fax: 02 9622 5660
TECHNICAL DIRECTOR
Peter Wenn
Tel: 03 9568 7211 Fax: 03 9568 7255
COMMITTEE
Dean Halliwell
Tel: 02 9623 3329 Fax: 02 9623 3207
Bob Mules
Tel: 02 8718 6300 Fax: 02 8718 6377
Peter Davis
Tel: 02 8796 5055 Fax: 02 8796 5052
Doug Rawlings
Tel: 08 9350 5700 Fax: 08 9350 5503
Keith Clarke
Tel: 03 9792 1000 Fax: 03 9792 1011
TELESCOPIC HANDLER ASSOCIATION OF
AUSTRALIA (TSHA)
President:
Stuart Walker
Tel: 02 9517 3174
Fax: 02 9517 3274
Opinions published in the Hire and Rental Industry
Association magazine – Hire and Rental News – do
not necessarily reflect the opinions of the association
or the Editor. The HRIA accepts no responsibility
for the accuracy of any information contained in
this magazine and readers should rely upon their
own enquiries in making decisions related to their
own interest.
The contents of this publication are subject to
copyright and cannot be reproduced in any way or
form without written consent from the Editor.
All rights reserved. ISSN 1838-1197
National President – Rick Mustillo,
Kookaburra Equipment Sales
Vice President – Mitch Ely, Genie Australia
Past President – Tim Nuttall, Access Hire
Committee:
Bob Mules, JLG Industries Australia
Peter Davis, Coates Hire
Doug Rawlings, United Equipment
Keith Clarke, Haulotte Australia
The growth pace is slightly more moderate
than the previous two years, but the industry’s
progress is consistently positive regardless of
changes in oil and gas, construction and other
segments equipment rental companies serve.
“The performance of the equipment rental
industry since the recession has been very
positive and as auxiliary industries recover and
grow, we anticipate equipment rental revenue
growth to meet the forecast of the next five
years,” Christine Wehrman, ARA CEO and
Executive Vice President said.
“This means equipment rental companies can
prepare for steady growth, plan for expanding
their markets and build inventory to meet their
customer demand. The forecast also shows many
customers who have turned to renting equipment
during and after the recession have seen the
benefits and will continue to rent to control their
costs,” Christine said.
“The secular shift to rental is here to stay.”
The economic analysis from the ARA Rental
Market Monitor subscription service suggests the
ongoing rebound in real residential construction
in 2015 will help fuel the growth in the
construction and industrial equipment and the
general tool rental segments.
“A 2015-19 compound annual growth rate (CAGR)
of 2.7% is projected for real total construction
with real nonresidential growing 1.0% and real
residential growing 5.7%. This will drive revenue
growth in the construction and industrial
segment and the general tool segment, which will
average annual revenue increases of 6.5% and
6.7% respectively, over the period,” according to
the latest analysis provided by IHS Economics,
the forecasting firm that provides data and
US rental industry five-year forecast
The American Rental Association (ARA) latest forecast calls for
equipment rental industry revenue growth in the United States
of 6.7% in 2016 and 2017, 6.2% in 2018 and 5.8% in 2019 to reach
$48.7 billion.
analyses for the ARA Rental Market Monitor.
According to the ARA Rental Market
Monitor, party and event rentals will “benefit
from continued improvement in consumer
spending and rental revenue is projected to
show a 2.6% CAGR over the 2015-19 period.
Total equipment rental revenue is expected
to grow at a CAGR of 6.3% between 2015 and
2019, reaching $48.7 billion in 2019.”
The short-term forecast for Canada is more
subdued in 2016, with expectations of 0.8%
growth in equipment rental revenue to reach
$4.98 billion, with a greater rebound of 5.7%
in 2017, 6.3% in 2018 and 5.6% in 2019 to
reach $5.9 billion.
“Lower oil prices will put some downward
pressure on oil sands investment, but prices
are expected to bottom out above the point
at which oil sands become unprofitable and
will rise steadily to over $80 a barrel by the
end of 2018,” according to the ARA Rental
Market Monitor.
In Canada, according to the ARA Rental
Market Monitor, “even with the modest
outlook for construction markets,
construction and industrial equipment
and general tool revenues are expected
to grow at CAGRs of 4.7% and 4.3%,
respectively, through 2019. Party and event
rental is expected to grow at a CAGR of
3.6%, benefitting from increases in overall
consumer spending, as well as growth in
consumer expenditures on services. Total
rental revenue is projected to grow at a
CAGR of 4.6% over the 2015-19 period.”
Visit:
Dean Halliwell, Melrose Access Hire
QLD President – Richard Gannon, Haulotte
Australia
NSW President – John Glover, Onsite Rentals
SA President – Ben Pritchard, BPF Equipment
VIC President – Tim Hille, Vic Access
WA President – Will Reilly, Access Rentals
Australia
TSHA President – Stuart Walker, Manitou
EWPA Board of Directors for 2016
The EWPA Board of Directors for 2016 is:
ACCESS IN ACTION • FEBRUARY 2016 22