Baird, in partnership with RER, has published the results of its second-quarter 2011 survey of the rental equipment industry, which showed a 9.3-percent rental revenue increase over the second-quarter 2010 survey, but a decline from the 13.5-percent year-over-year increase in rental revenue reported in the first quarter of 2011.
Respondents’ average fleet size was 5.3-percent greater than the second-quarter 2010, and a 3.3-percent improvement from 1Q11. Rental rates were up 2.2 percent in the second quarter and up 2.4 percent from the same-period last year. Utilization rates in the second quarter were 58.3 percent on average, an improvement from 50.5 percent in 1Q11, reflecting seasonality as well as improved underlying trends.
The Baird/RER survey showed that the 2011 rental revenue forecast dipped to 9.4 percent from 12.8 percent in the first quarter. The rental rate growth forecast dipped slightly to 4.6 percent in the second quarter from 5.7 percent in 1Q11. Respondents also reported fleet spending over the next six months to be up 9.1 percent year-over-year.
According to the survey, overall sentiment remains cautious, but appears to be edging higher. Industrial markets are expected to show continued growth while construction trends are expected to remain challenging.
Participants in the Baird/RER survey are senior executives at rental equipment businesses in all regions of the United States, parts of Canada and some international markets, representing nearly $16 billion in annual revenue.
Robert W. Baird & Co. is an employee-owned, international wealth management, capital markets, private equity and asset management firm with offices in the United States, Europe and Asia. For more information, visit Baird’s website at rwbaird.com.
RER has covered the equipment rental industry since 1957, providing its readers with a mix of news, features and product information. For more information, visit www.rermag.com.