ARA sees rental growth
07 May 2008
The American Rental Association is continuing to forecast growth in the North American rental market this year, despite concerns for the economy, although the market is expected to “soften.”
The ARA's latest “state of the industry” report – announced at the Rental Show in Las Vegas – reported that the total rental market in the US and Canada was worth $42.3 billion, with $36.5 billion in the US and $5.8 billion in Canada.
John McClelland, ARA's vice president of governmental affairs, said the report indicated that the rental market will continue to grow over the next five years, but at a slower compound growth rate of 4.1% between 2007 and 2012. “We are looking at a soft patch here, there is no question... [but] we are still expecting growth in the long run,” he said.
McClelland said the US rental market could benefit from an economic stimulus package that has just been passed by the US Senate. The package includes tax benefits for small and large companies that could encourage capital investment by rental companies. “It provides a very strong incentive to purchase new equipment,” said McClelland.
Meanwhile, rental consultant Dan Kaplan, writing in the recent AEM Advisor Rental bulletin, forecast that the top 10 rental companies in North America would cut capital investment by 23 per cent this year.
Read ALH's Rental Show report on page 33.