US rental revenues hit by virus
By Thomas Allen20 March 2020
Rental companies in the US are starting to see revenues take a hit from the coronavirus pandemic, according to a survey conducted by the American Rental Association (ARA).
The results from the construction/industrial and general tool/DIY members indicate that 37% have seen no revenue loss, almost 33% have experienced up to a 15% loss in revenue, and less than 3% reported a loss of more than 60%.
The party and events rental businesses have seen a more dramatic impact though, with event cancellations leading to revenue losses in excess of 60% for 55% of respondents, and more than 15% of party and events rental firms reporting a loss of between 46 and 60%.
Tony Conant, CEO of the ARA, said, “This is a dire time for our industry. We’re putting the needs of our members in the rental community first.
“ARA and ARA Insurance have put initiatives in place to ease the financial stress on our members as it relates to membership dues and insurance premiums. Our goal is to continue assisting our members and keep them informed on resources that are available to help them manage through these unprecedented times.”
Some rental operations have temporarily closed, but those that remain open indicate that they are taking every precaution to protect employees and customers by implementing recommendations from the Centers for Disease Control and Prevention (CDC) and extra cleaning and sanitising of equipment.
Many rental operations remain open in order to provide necessary equipment and services for customers that are continuing work.
The ARA will be conducting member surveys on a weekly basis in an effort to continually monitor the impact the virus, legislation, regulations and social distancing are having on the industry.
The association is encouraging industry employees to join the ARA Coronavirus Discussion Group on Facebook to engage in discussion and understand how others are coping during this time.
Further information about coronavirus can be found at ARArental.org.