The U.S. construction equipment rental industry will grow 12 percent to about $28.2 billion in revenue, industry analyst Frank Manfredi predicts in an article that will be published shortly in RER’s February edition, compared to about $25.2 billion in 2011. Manfredi predicts estimated rental revenue per location will jump from $1.82 million in 2011 to about $2.02 million in 2012, with estimated number of rental locations growing from 13,830 to 13,975.

Manfredi’s predictions bely the fact that housing starts flat-lined at slightly more than 600,000 units in 2011, a year that equipment rental increased about 17 percent, he notes. Manfredi says that overall economic uncertainty and visibility of only about three to six months into the future is a trend favoring rentals as equipment users prefer the rental option during periods of uncertainty. Manfredi adds that new emissions regulations (Tier 4 interim) are increasing equipment prices more than most equipment buyers expected.

Manfredi adds that more construction activity is coming from non-traditional markets such as shale gas exploration and surface mining activity, which require large amounts of site-preparation and maintenance of the site once work begins.

Mandfredi’s forecasts that construction unemployment will decline to less than 10 percent during 2012, another trend that favors the growth of rental.

Manfredi, president of Mandelein, Ill.-based Manfredi & Associates, says it is possible for total equipment rental revenue to return to its 2007 peak of about $37.6 billion within two to three years.

RER’s February issue will be available in early February and will be available at RER’s Booth 6617 at the Rental Show in New Orleans.