Equipment Type

Equipment Rental Revenue to Grow in 2014

Overall North American rental revenue totaled $38 billion in 2013, according to the American Rental Association’s (ARA) Rental Market Monitor.

February 18, 2014

Overall North American rental revenue totaled $38 billion in 2013, according to the American Rental Association’s (ARA) Rental Market Monitor. ARA projects North American rental revenues to be $41.1 billion in 2014 and to reach $52.3 billion by 2017. This gain will be led by strong growth in the U.S. equipment rental market coupled with steady growth in Canada.

In 2013, U.S. revenues accounted for $33.3 billion and Canada accounted for an additional $4.7 billion.

Construction and industrial equipment rentals continued to produce the largest share of 2013 rental revenues of any U.S. segment with $22.3 billion followed by the general tool segment at $8.5 billion and the party and event segment with $2.5 billion in revenues. Overall 2013 rental revenues grew at a year-over-year rate of 6.4 percent with the construction and industrial equipment segment leading the way with year-over-year growth of 7.3 percent followed by general tool with 5.3 percent growth and party and event with 2.8 percent growth.

“These numbers suggest that the economic recovery in the construction and industrial equipment market continues at a strong pace,” said Scott Hazelton, director of consulting for IHS. IHS compiles data for the ARA Rental Market Monitor service. “The stronger growth in this segment is also evidence of the secular shift we have seen in recent years that results in more rental and fewer equipment purchases by contractors and industrial customers."

Total investment in rental equipment in 2013 was $11.1 billion. The construction and industrial sector led the way with $7.5 billion in investment followed by the general tool segment with $3.2 billion of investment in 2013 and party and event with $400 million of investment. Year-over-year investment growth came in at a level of 10.3 percent overall; however the growth was slower than the pace set in 2011 and 2012.

“We would expect investment growth to slow as the market stabilizes after the rapid re-fleeting that occurred following the financial crisis,” said John McClelland, ARA vice president for government affairs. “These investment numbers tell us the industry has caught up on the fleet side and is now investing for the future instead of trying to catch up with current demand."

The forecast shows U.S revenues predicted to grow at rates well above 7 percent throughout the forecast period that extends through 2017. Growth is especially strong in the construction and industrial equipment and general tool segments, which will see year-over-year growth peak at 11.1 and 15.2 percent respectively in 2015. Party and event revenues continue to grow at about the same rate as the economy throughout the forecast period.

“Overall, 2013 was another good year for the equipment rental industry as it continues to far outpace the general economy,” Hazelton said. ”We continue to see the equipment rental industry as a leader in the economic recovery over the next five years.”

 
 

Comments on: "Equipment Rental Revenue to Grow in 2014"

SUBSCRIBE TO OUR NEWSLETTERS

Optional
Optional
Type the characters you see in this picture. (verify using audio)
Type the characters you see in the picture above; if you can't read them, submit the form and a new image will be generated. Not case sensitive.