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.