Equipment rental revenues could reach nearly $50 billion in 2017, according to American Rental Association’s (ARA) latest forecast from the ARA Rental Market Monitor. The construction and industrial equipment segment is forecast to grow 8.1 percent in 2013, 9.2 percent in 2014, and 12.9 percent in 2015.
The index forecast total rental revenue for 2013 will be $33.5 billion, 7 percent higher than 2012.
The construction market and consumer spending continue to be the most important drivers of growth of the equipment rental market in 2013, says ARA.
“Though real nonresidential construction is forecast to decline 0.8 percent, real residential construction is expected to grow 8.2 percent, yielding an overall real construction growth rate of 2.6 percent in 2013. Real consumer spending is projected to increase 1.9 percent in 2013, with spending on recreational services forecast to grow 1.3 percent. These improvements will translate into increased revenue in all segments of the equipment rental market,” according to the U.S. economic analysis from the ARA Rental Market Monitor.
“As we look toward the third quarter of the year, we continue to see significant growth opportunity in succeeding future years for equipment rental,” said Christine Wehrman, ARA executive vice president and CEO. “The dynamics of the economy drive this industry, along with individual management initiative. Rental operators adeptly balance these factors to build their rental revenue volume.”
The ARA Rental Market Monitor is a subscription-based service for American Rental Association (ARA) members provided by ARA and Rental Management as part of a partnership with IHS Global Insight.