ARA upgrades US rental market forecast

Photo: onionastudio via AdobeStock Photo: onionastudio via AdobeStock

The equipment rental industry in the US could reach $79.2 billion this year according to the latest forecasts from the American Rental Association (ARA). 

In its updated forecast, the Association said the US equipment rental industry’s growth projection has increased since last quarter, with most current projections indicating a 9.7% increase.

That represents an increase of 2.8% on previous estimations, which predicted a total of $77.3 billion.

Tom Doyle, ARA vice president program development, said, “The 2024 ARA forecast through the lens of our exclusive rental revenue model, and survey results gathered from members, confirms the continuation of a growing rental industry.”

Scott Hazelton, managing director, S&P Global. added, “There has been no serious bust, thus, there is no serious boom. The outlook remains steady and inflation is falling. The growth rates tail off in the future years, with growth of 3.8% in 2025 and 3.1% in 2026.”

According to Jeff Vance, senior vice president of operations services, Sunstate Equipment the S&P forecasts are in line with its own, which predict a softer winter and spring than usual and used equipment prices softening. 

Elsewhere, Canada’s equipment rental revenue is projected to have 7.2% growth this year, totaling $5.79 billion.

General tool and construction and industrial equipment (CIE) are both expected to see growth, with general tool revenue projected to be up 6.8% to $1.08 billion, up from last quarter’s projection of $954 million.

General tool revenue is projected to increase 9.7% this year to $16.6 billion and investment is expected to expand in 2024 and beyond. 

Investment in general tool is projected to increase 7.3% with growth into 2025 at 7.9% and into 2026 at 6.4%. 

Darryl Cooper, president, Cooper Equipment Rentals, said, “Our experience mirrors what ARA is reporting. Despite headwinds in the residential market, revenues are up, with western Canada stronger than eastern Canada.”

In terms of the supply chain, Sunstate said there has been a loosening, with fleet and parts easier to get hold of.

In addition, Vance said new vendors have been introduced into the marketplace with new technology; “We’re doing a lot of investigation into electrification,” he says. “The power grid is always a topic in our minds. But, more electrification is coming, so we must be prepared to service our customers in those ways.”

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