The American Rental Association (ARA), for the second quarter in a row, is projecting larger increases in revenue almost across the board for the equipment and event rental industry than it did in the previous (May), five-year forecast.
The July 2018 forecast from ARA Rentalytics calls for total U.S. rental revenue of $53.04 billion this year, up 7.6 percent, and then growing 5.8 percent in 2019, 5.9 percent in 2020, 5.1 percent in 2021 and 4.7 percent in 2022 to reach $65.4 billion. May’s forecast was total U.S. rental revenue of $52.3 billion in 2018, growing to $64.1 billion in 2022.
“ARA’s second-quarter forecast shows continued strong growth in rental revenues over the forecast period. Growth rates for 2018 and 2019 look particularly strong in all segments of the equipment and event rental industry with growth rates forecast at more than double the rate of GDP [gross domestic product] growth,” said John McClelland, Ph.D., ARA’s vice president of government affairs and chief economist.
While the near-term outlook is particularly strong, McClelland said the out-years of the forecast could be subject to change due to the potential impact of tariffs on the economy and construction projects.
According to ARA Rentalytics, construction and industrial equipment rentals continue to account for the bulk of revenue and now is expected to reach $37.15 billion in 2018, up 8.3 percent over last year. General tool rental revenue 2018 is forecast to be $12.49 billion, up 5.4 percent..