The equipment rental industry in the U.S. is expected to generate $35.8 billion in revenue and outpace gross domestic product (GDP) by more than four times in 2014, according to the American Rental Assn.’s (ARA) latest forecast from the ARA Rental Market Monitor.
In the U.S., total equipment rental revenue is forecast to grow 7.6% in 2014 to reach $35.8 billion, 10.5% in 2015 to reach $39.6 billion and another 10.2% in 2016 to reach $43.6 billion, surpassing the previous industry record of $36.9 billion in 2007. The growth rate is expected to be 8.9% in 2017 and 7.7% in 2018, with total rental revenue of $51.2 billion.
Over the next two years, the construction and industrial segment and the general tool segment will experience double-digit growth in U.S. rental revenue. In 2015, construction and industrial rental revenue is projected to increase 10.7% and general tool 11.7% and again in 2016 with increases of 10.4% and 11.6% respectively.
The party and event segment is expected to continue it same steady growth, with revenue increasing 4.2% in the U.S. in 2014 to reach $2.6 billion.
The forecast for Canada calls for 5.2 percent growth in 2014 to $4.9 billion, with growth of 6% in 2015, 6.6% in 2016, 3.5% in 2017 and 3.6% in 2018 to total $5.9 billion at the end of the latest forecast.
It is also expected that rental companies in the U.S. will continue to invest more than 30% of their revenue in new equipment over the next five years. Total investment, according to the ARA Rental Market Monitor, is projected to reach $12.1 billion in 2014 and grow to $16.1 billion by 2018.