Equipment rental in the US is expected to top $56 billion (€52.28 billion) by 2020, according to the American Rental Association (ARA), representing an increase on its November 2016 forecast.
ARA said it expected US equipment rental to grow 3.7% in 2017, reaching $48.9 billion (€45.66 billion), before growing at an average annual rate of 4.3% year-on-year to 2020.
ARA said one reason for an expected increase in annual growth from 2018 onwards was due to the anticipated “additional spending” under the new US President Donald Trump.
John McClelland, ARA vice president for government affairs and chief economist, said, “Growth is primarily driven by strength in both residential and non-residential construction, as well as consumer spending.”
Mr McClelland said revenues for the general tool sector was expected to grow even faster towards the end of the forecast period due to the continued improvement in the US housing market, with increases of 2.9% in 2017, 5.1% in 2018, 5.3% in 2019 and 6.6% in 2020 expected.
Scott Hazelton, managing director, IHS Markit, said, “The early initiatives from the Trump administration signal increased investment in infrastructure, a more accommodative energy policy, and a more business-friendly tax and regulatory climate.
“The results of these policies will not affect 2017, but will improve our outlook relative to baseline in 2018 and beyond. The nature of tax and regulatory reform is that they play out over a number of years, hence improved growth compared to our prior forecast for 2018 to 2020.”
Meanwhile, the latest ARA Rental Market Monitor forecast for Canada predicts CA$5.15 billion (€3.67 billion) in equipment rental revenue in 2017, which ARA said reflected a gradual slowing in growth rates to 3.3% compared to its November 2016 forecast.
It added the forecast of 3.8% growth in 2018 and 3.9% in 2019 also reflected a gradual slowing compared to its November 2016 forecast. However, it said the current forecast for growth in equipment rental revenue in Canada in 2020 was 5.3%, meaning a total around CA$5.85 billion (€4.16 billion), which is greater than its previous forecast.