The American Rental Association (ARA) said it expected the US equipment rental industry to grow 8.1% in 2015, reaching a value of US$38.5 billion (€33 billion).
The latest forecast represents a trimmed outlook compared to the association’s previous forecast of 9.2% growth this year, which itself was revised from an initial outlook of 10.5% growth.
The ARA Rental Market Monitor data said construction and industrial revenues in the US were now forecast to increase 8.5% in 2015 to US$26 billion (€22 billion), with general tool revenues projected to grow 8.3% to US$9.9 billion (€8.5 billion), and party & event revenues to show a 4.5% increase to US$2.7 billion (€2.3 billion).
ARA executive vice president and CEO Christine Wehrman said, “The equipment rental industry continues to grow at a fast pace with strong equipment rental demand within all markets.
“While the news focuses on the energy sector of the economy, our industry is fortunate to have a balanced marketplace in which rental is in demand and energy represents only one of those markets.
“Rental companies have always been flexible in meeting customer demand by adapting quickly to changing markets. The industry growth forecast remains more than double that of the overall economy.”
Scott Hazelton, managing partner at research company IHS Inc, which compiles data for the ARA Rental Market Monitor, added, “The number of positive offsets in commercial construction, multifamily housing, healthcare and manufacturing help to counteract the drop in oil prices and contribute to the strong 2015 growth projections for the equipment rental industry.
“Natural gas and oil extraction growth will likely be slower in 2015 and 2016, but it is important to note that extraction actually increases, just at a slower rate, even with lower oil prices. IHS already had projected softness in the energy markets in 2016, so the quick drop in oil prices now presents less of a change in the overall forecast for the equipment rental industry.”
Meanwhile in Canada, 3.7% growth in 2015 is now expected, according to the ARA Rental Market Monitor, reaching a value of US$4.1 billion (€3.5 billion).
This was also a downgrade compared to the previous forecast of 5.2% growth this year.
For 2016, Canadian rental growth of 6.3% is now expected in 2016 to nearly US$4.4 billion (€3.8 billion), compared to the previous outlook of 6.8% growth.