The outlook for the equipment rental industry indicates increased optimism as first-quarter performance was better than expected, resulting in a more positive outlook for the full year, according to new data released by the American Rental Association.
ARA now expects the overall North American equipment rental industry to increase at least 8.6 percent in 2012 to $34.1 billion by year’s end, nearly 2 percentage points higher than forecast in February. The projections are based on new figures updated quarterly by IHS Global Insight, a leading economic forecasting firm and a partner in providing data and analysis for the ARA Rental Market Monitor. The forecasted revenue growth is nearly four times the 2.2-percent growth in gross domestic product forecast for the United States in 2012.
The forecasted rental revenue includes three segments — construction and industrial, general tool, and party and event. The ARA Rental Market Monitor’s current five-year forecast calls for rental revenue to reach $53.2 billion by 2016 in North America.
Investment in new equipment will reach $9.8 billion this year, according to IHS, as equipment rental companies continue to rebuild and expand inventory to meet greater demand.