ARA forecasts 7.6% rental growth in US for 2013
By Murray Pollok23 November 2012
The American Rental Association (ARA) continues to make strong growth forecasts for the US equipment rental sector, estimating rental growth next year of 7.6%, which will be around four times the country’s expected GDP growth.
The association said 2013 will be a transition year, with growth accelerating in 2014 and 2015 to generate total revenues of US$45.3 billion by 2016. That compares to a forecast of $33.5 billion for next year.
Scott Hazelton, director of consulting for IHS Global Insight – which compiles the ARA’s Rental Market Monitor report – said; “Next year will be a year of transition to 2014 and beyond and it will get even better for the equipment rental industry.
"Our forecasts show growth in construction spending will be double-digit in 2014 and 2015, so there will be strong demand with a broad-based recovery".
ARA also forecasts that rental companies will increase their investment in equipment by more than 20% in both 2014 and 2015.
"If you have a fleet designed for the present market, you will need to pick that up in 2014 to meet increased demand”, said Mr Hazelton.
“In a recovery, you see increases and plateaus. You will see an increase next year and more in 2014 with a new peak or plateau in 2015 as higher demand and higher rental penetration pushes up revenue and investment".
Christine Wehrman, ARA's executive vice president and CEO, said the equipment rental sector was on the leading edge of the US economic recovery, “The outlook through 2016 reflects significant growth, with double-digit increases forecasts for 2014 and 2015.
"Our members have an excellent opportunity in the coming year and beyond to grow their businesses and continue to show customers the value of rental".
The ARA holds its annual convention in Las Vegas next year on 9-13 February. The trade show, which takes place on 11-13 February, is already sold out.