The equipment rental industry revenue forecast for the next five years continues to appear upbeat, with growth rates exceeding 7 percent through at least 2018, according to the latest projections released by the American Rental Association. The U.S. rental industry remains on track to reach record revenue of $38.3 billion in 2015.
The recently updated forecast, based on data provided by IHS Economics, said the forecast remains strong despite slower demand for rental equipment from the mining, oil and gas sectors, as commercial and residential construction spending have picked up steam this year and are expected to grow faster during the next few years. ARA predicts total equipment rental revenue in 2015 for the U.S. will grow 7.3 percent, followed by 7.8 percent in 2016, 7.3 percent in 2017, 7.4 percent in 2018 and 6.5 percent in 2019 to reach $50.6 billion.
In Canada equipment rental revenue is forecast to increase 2.6 percent in 2015 to reach $4.04 billion. The growth rate is projected to increase 3.1 percent in 2016, 3.9 percent in 2017, 6.4 percent in 2018 and 4.5 percent in 2019 to reach $4.83 billion.
For the United States and Canada combined, total equipment rental revenue is forecast to be $43.3 billion in 2015, up 6.8 percent, reaching $56.6 billion by 2019.
“The equipment rental industry continues on an upward trajectory and is expected to show significantly strong growth through 2019,” said Christine Wehrman, ARA executive vice president and CEO. “Some specific market conditions may change, but rental companies are agile and can adapt their inventory and fleet to fit what the market demands.”
