ARA revises North American rental forecasts
By Helen Wright06 May 2014
The American Rental Association (ARA) has downgraded its forecasts for rental revenues in North America. It said it now expected total equipment rental revenue to grow 7.5% this year, compared to its previous forecast of 8.2%.
The updated ARA Rental Market Monitor forecast – produced in association with consultant IHS Global Insight, and publicised by ARA newsletter RentalPulse – estimated that rental revenues would total US$ 40.8 billion this year. Growth in the first quarter was reported to stand at 6%.
The new forecast for 2015 was for growth of 10.4% to $45 billion, compared to the ARA’s previous outlook of an 11% increase.
For 2016, the new outlook was for 9.3% growth with rental revenues totalling $49.2 billion, while increases of 7.7% and 7.2% were forecast for 2017 and 2018, with the value of the market totalling $56.8 billion by 2018.
According to RentalPulse, the ARA Rental Market Monitor also forecast that rental companies would invest $12.1 billion in new equipment in 2014, growing to $14.3 billion in 2015, $15.9 billion in 2016, $15.8 billion in 2017 and $16.2 billion in 2018.