May 2016, Vol. 71 No. 5


ARA Projects Revenue Growth for Equipment Rental Industry

The American Rental Association (ARA), which offers quarterly updates to its 5-year forecast for rental equipment industry revenue to reflect the most up-to-date economic factors, released its second quarter outlook, May 2.

The total U.S. rental revenue in 2016 is expected to reach a record $47.9 billion, climbing to an unprecedented $55.6 billion in 2019.

For Canada, the forecast calls for a 2.2 percent decrease in total rental revenues – down to $4.83 billion – due to a 2.9 percent decrease in construction and industrial equipment rental revenue in 2016. The general tool sector is expected to show an increase of 0.8 percent and party and event is forecasted to show an increase of 0.5 percent increase in 2016.

The trend in Canada is forecasted to see an uptick in 2017, with Canadian rental revenue expected to show a 4.7 percent increase. The market is expected to grow to reach $5.64 billion in 2019.

While the ARA’s second quarter outlook projects a positive future for the rental industry, several factors could also pose potential risks to the industry’s growth, including unexpected government policy changes and oil price changes.

“The U.S. economy continues to expand. The wild card is that much of the global economy has failed to ignite. Sluggish growth from U.S. trading partners continues to weigh on oil prices, preserve the high value of the dollar and subdue business confidence in key industries,” said Scott Hazelton, managing partner at IHS Global Insight, the global forecasting firm that compiles data and analyses for the ARA Rental Market Monitor.

The American Rental Association is an international trade association for owners of equipment rental businesses and the manufacturers and suppliers of construction/industrial, general tool and party/event rental equipment. ARA members, which include more than 9,700 rental businesses and nearly 1,000 manufacturers and suppliers, are located in every U.S. state, every Canadian province, and more than 30 countries worldwide. The ARA was founded in 1955 and serves as a source of information, advocacy, risk management, business development tools, education and training, networking and marketplace opportunities for the equipment rental industry, worldwide.


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