Equipment Rental Industry Forecast Calls for Consistent Growth
November 13 2017 - 10:00AM
Business Wire
Equipment rental industry to generate $59.3
billion in revenue in 2021
In its latest five-year forecast, the American Rental
Association (ARA) expects equipment rental industry revenue to grow
consistently with a compound annual growth rate (CAGR) between 2017
and 2021 of 4.7 percent in the United States, resulting in total
revenue of $59.3 billion in 2021.
According to the ARA Rental Market Monitor™ five-year
forecast updated in early November, total rental revenue in the
U.S. is expected to grow by 4.5 percent in 2018 to reach $51.5
billion, 5.5 percent in 2019, 4.9 percent in 2020 and 4.1 percent
in 2021. The November forecast almost is exactly the same as the
last forecast in August, with only minor fluctuations up or down in
expected growth rates each year.
In Canada, equipment rental revenue also is expected to show
consistent growth, reaching $5.3 billion in 2018 with growth rates
of 4.1 percent in 2019, 5 percent in 2020 and 4.8 percent in 2021
to total $6.11 billion.
“This is a strong forecast, showing the equipment rental
industry will continue to consistently grow over the next five
years, without factoring in any possible impact from tax reform or
infrastructure spending,” says John McClelland, ARA’s vice
president for government affairs and chief economist.
“People continue to realize the benefits of renting and how it
can positively impact the bottom line. As a result, the equipment
rental industry continues to outperform the general economy as well
as the industries it serves,” McClelland says.
According to the ARA Rental Market Monitor, which
features data and analysis from IHS Markit, one of the world’s
leading forecasting firms, construction/industrial equipment rental
revenue is expected to show a 4.1 percent CAGR over 2017-21,
reaching $40.4 billion in 2021.
General tool is expected to post a 5.7 percent CAGR over the
forecast period, reaching $15 billion in 2021, while party and
event is expected to have a 6.3 percent CAGR and surpass $3.9
billion in revenue in 2021.
Investment in rental equipment is projected to increase by 4
percent in 2018, 8.4 percent in 2019, 2.6 percent in 2020 and 1.2
percent in 2021, surpassing $15 billion that year.
About ARA: (www.ARArental.org) The American
Rental Association, Moline, Ill., 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 10,000 rental businesses and more than 1,000
manufacturers and suppliers, are located in every U.S. state, every
Canadian province and more than 30 countries worldwide. Founded in
1955, ARA is the source for information, advocacy, risk management,
business development tools, education and training, networking and
marketplace opportunities for the equipment rental industry
throughout the world.
About IHS Markit™: (www.ihsmarkit.com)IHS
Markit (Nasdaq: INFO) is a world leader in critical information,
analytics and solutions for the major industries and markets that
drive economies worldwide. The company delivers next-generation
information, analytics and solutions to customers in business,
finance and government, improving their operational efficiency and
providing deep insights that lead to well-informed, confident
decisions. IHS Markit has more than 50,000 key business and
government customers, including 85 percent of the Fortune Global
500 and the world’s leading financial
institutions. Headquartered in London, IHS Markit is committed
to sustainable, profitable growth.
IHS Markit is a registered trademark of IHS Markit Ltd and/or
its affiliates. All other company and product names may be
trademarks of their respective owners © 2017 IHS Markit Ltd. All
rights reserved.
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American Rental AssociationTracy
Johannsen(tracy.johannsen@ararental.org)800-334-2177, ext. 270 or
309-277-4270
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