The outlook for the equipment rental industry shows increased optimism as first-quarter performance was better than expected, resulting in a more positive outlook for the full year, according to the latest data released by the American Rental Association (ARA).
ARA now expects overall North American equipment rental industry revenue to increase at least 8.6 percent in 2012 to total $34.1 billion at year end, nearly 2 percentage points greater than forecast in February.
The projections are based on new figures updated quarterly by IHS Global Insight, one of the world’s leading economic forecasting firms and a partner in providing data and analyses for the ARA Rental Market Monitor subscription service for ARA members.
The equipment rental industry’s forecasted revenue growth in 2012 is now nearly four times the 2.2 percent growth in gross domestic product forecast for the United States in 2012.
The forecasted rental revenue total includes the three segments of the industry — construction and industrial, general tool, and party and event — in the United States and Canada combined. The ARA Rental Market Monitor current five-year forecast calls for continued annual growth in rental revenue to reach a total of $53.2 billion by 2016 in North America.