A large majority of rental store owners and managers — more than 80 percent — expect 2011 to be a much better year than 2010 according to the latest quarterly American Rental Association (ARA) Economic Survey of members.
More than 34 percent of ARA general members responding to the survey expect rental revenues to show double-digit increases in 2011 versus 2010 and another 46 percent expect at least single-digit increases this year.
The results show a growing optimism for a significant rebound in 2011 as only about half of the respondents said revenues increased in 2010 compared to 2009. Nearly 30 percent of the respondents had revenue declines in 2010, but only 4 percent expect a drop in revenue in 2011.
Nearly 70 percent of the respondents also expect to spend more on new rental equipment purchases in 2011 compared to 2010, a significant increase over last year.
The spending expectations of general members also match up with the sales forecasts of ARA associate member equipment suppliers as more than 83 percent of the associate member survey respondents expect increased sales into the rental channel, including 52 percent that expect double-digit sales increases.
Less than 20 percent of the associate member respondents said sales into the rental channel decreased in 2010 while only 1 percent of the respondents expect a decrease in 2011.
“Clearly ARA members are more optimistic about 2011 and have a positive mindset,” says Christine Wehrman, ARA’s executive vice president and CEO. “Rental companies can benchmark their businesses against these survey results.”
The survey results reflect a snapshot in time of those who responded and may not be representative of the industry as a whole.