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U.S. Equipment Rental Revenue to Exceed $51 Billion in 2018

Aug. 12, 2014
"The U.S. economy slowed more than expected in the first half of the year, but equipment rental demand has remained strong and rental growth will still handily outperform the overall economy," says Scott Hazelton, managing director with IHS Global Insight.

The equipment rental industry in the United States is expected to generate $35.8 billion in revenue and outpace gross domestic product (GDP) by more than four times in 2014, according to the American Rental Association’s latest forecast from ARA Rental Market Monitor are compiled by IHS Inc.

“The U.S. economy slowed more than expected in the first half of the year, but equipment rental demand has remained strong and rental growth will still handily outperform the overall economy,” says Scott Hazelton, managing director with IHS Global Insight. “Looking forward, commercial construction and housing starts will contribute to growth in the construction and industrial and general tool segments.”

In the U.S., total equipment rental revenue is forecast to grow 7.6% in 2014 to reach $35.8 billion, 10.5%in 2015 to reach $39.6 billion and another 10.2% in 2016 to reach $43.6 billion, surpassing the previous industry record of $36.9 billion in 2007.

The growth rate is expected to be 8.9% in 2017 and 7.7% in 2018, with total rental revenue of $51.2 billion.

“The U.S. economy slowed more than expected in the first half of the year, but equipment rental demand has remained strong and rental growth will still handily outperform the overall economy. Looking forward, commercial construction and housing starts will contribute to growth in the construction and industrial and general tool segments,” says Scott Hazelton, managing director with IHS Global Insight.

Over the next two years, the construction and industrial segment and the general tool segment will experience double-digit growth in U.S. rental revenue. In 2015, construction and industrial rental revenue is projected to increase 10.7% and general tool 11.7% and again in 2016 with increases of 10.4% and 11.6%nt respectively.

The party and event segment is expected to continue it same steady growth, with revenue increasing 4.2% in the U.S. in 2014 to reach $2.6 billion.

About the Author

Adrienne Selko | Senior Editor - MH&L, IW, & EHS Today

Adrienne Selko has written about many topics over the 17 years she has been with Endeavor Business Media and currently focuses on workforce development strategies. Previously Adrienne was in corporate communications at a medical manufacturing company as well as a large regional bank.

She is the author of Do I Have to Wear Garlic Around My Neck? which made the Cleveland Plain Dealer's best sellers list. She is a senior editor at Material Handling & Logistics, EHS Today, and IndustryWeek. 

Editorial Mission Statement:

Manufacturing is the enviable position of creating products, processes, and policies that solve the world’s problems. When the industry stepped up to manufacture what was necessary to combat the pandemic, it revealed its true nature. My goal is to showcase the sector’s ability to address a broad range of workforce issues including technology, training, diversity & inclusion, with a goal of enticing future generations to join this amazing sector.

Why I Find Manufacturing Interesting: 

On my first day working for a company that made medical equipment such as MRIs, I toured the plant floor. On every wall was a photo of a person, mostly children. I asked my supervisor why this was the case and he said that the work we do at this company has saved these people’s lives. “We never forget how important our work is and everyone’s contribution to that.” From that moment on I was hooked on manufacturing.

I have talked with many people in this field who have transformed their own career development to assist others. For example, companies are hiring those with disabilities, those previously incarcerated, and other talent pools that have been underutilized. I have talked with leaders who have brought out the best in their workforce, as well as employees doing their best work while doing good for the world.