The American Rental Association (ARA) has released projections showing US equipment rental revenues topping $50 billion (€45 billion) by 2018, or more than 7% each year.
The ARA Rental Market Monitor also said that the rental industry in the USA remains on course to produce record revenues of £38.3 billion (€34.9 billion) this year, while the total for North America including Canada is projected to be $43.3 billion (€39.5 billion) this year and $56.6 billion (€51.6 billion) by 2019.
The report said the outlook for the next five years remains strong, despite slower demand from the mining and oil and gas sectors. The ARA expects this to be offset by revenues from commercial and residential construction.
“The equipment rental industry continues on an upward trajectory and is expected to show significantly strong growth through 2019. Some specific market conditions may change, but rental companies are agile and can adapt their inventory and fleet to fit what the market demands,” said Christine Wehrman, the ARA’s executive vice president and CEO.
The ARA estimates rental revenue growth of 8.4% in the third quarter of 2015, and 9.9% in the fourth.
In individual markets, US construction and industrial equipment rental revenue, according to the forecast, is expected to grow at more than 7.5% a year until 2018 and 6.5% in 2019.
General tool rental revenue growth will be at least 7.5% a year, with a peak of 8.5% in 2016.
Party and event rental revenue growth will be more modest, at 4% this year and 4.3% in 2016, followed by annual increases between 1.8% and 2% in the following three years.
The figures are compiled for the ARA by IHS.