Hire and Rental News - May 2019

QUALITY YOU CAN TRUST HOPPT AUSTRALIA - CONSTRUCTION EQUIPMENT Email: sales@hoppt.com.au Web: www.hoppt.com.au GET THE JOB DONE! Call Hoppt now on 1800 046 778 Rental revenue growing in US despite slowdown Equipment and event rental revenues in North America are predicted to surpass $61.5 billion in 2019, including $55.8 billion in the United States and $5.7 billion in Canada, up 5.3% compared to 2018 according to the latest five-year forecast from the American Rental Association (ARA). S imilar steady growth is expected in each of the successive years of the forecast to reach nearly $70.9 billion in revenue by 2022. “There remains a strong forecast for a growing industry that continues to expand faster than the overall economy,” John McClelland, PhD, ARA Vice President for Government Affairs and Chief Economist said. In the US, equipment and event rental revenue is expected to grow another 4.8% in 2020, 5% in 2021 and 4.8% in 2022 to reach $64.4 billion. Rental penetration, the percentage of total construction equipment in use in the United States owned by equipment rental companies, increased to 53.5% in 2018, up from 53.0% in 2017. “Rental operators are anticipating another good year but have remained disciplined around adding inventory. The effect of better fleet management is minor fluctuations in the business cycle will not be overly disruptive to the rental industry,” John said. Scott Hazelton, Managing Director, IHS Markit, the forecasting firm that compiles data and analysis for the ARA Rentalytics subscription service as part of a partnership with ARA said: “The slightly lower increases projected in the new forecast are the result of slightly lower economic expectations. IHS Markit has lowered its GDP outlook marginally for 2019 and 2020, but this is not due to worries about a dramatic decline in the economy, but a recognition trade policy has had some negative consequences, particularly in the manufacturing sector, and the stimulus from tax cuts is wearing off for both consumers and businesses. “The global economy, with a few exceptions, also continues to slow. Yet, domestic employment gains in the US remain strong and while purchasing manager indexes have retreated, they remain in expansion territory. The outlook still is positive,” Scott said. n New strategic plan for the ARA With a new strategic plan to drive program initiatives over the next three years, the American Rental Association (ARA) has identified five key areas where it can make an impact, including: • Education: Position ARA as the primary source for education and training in the equipment and event rental industry; • Industry Workforce: Raise awareness of careers in rental and ensure a qualified and sustainable workforce; • Technology: Encourage effective use of technology to increase operational performance; • Market Intelligence: Provide industry metrics, forecasting resources and market intelligence tools for the industry; • Consumer Awareness: Promote the value proposition of rental so consumers think of rental first. n Visit: www.ARArental.org HIRE AND RENTAL NEWS MAY 2019 P11 INDUSTRY NEWS