US rental market rising

The US rental industry is forecast to reach US$49.3 billion (€41.72 billion) in 2017, a rise of 4.3% year-on-year, according to the American Rental Association (ARA).

In its latest report, released at the end of July, the ARA also expects US rental revenues to grow 5% in 2018. 5.8% in 2019, 4.4% in 2020 and 3.9% in 2021.

This would mean a total of US$59.4 billion (€50.27 billion) in five years’ time, for three segments of the industry, including construction and industrial, general tool and light construction, as well as party and special event.

The report is compiled by the ARA and research firm IHS Markit. It also states a steady increase in gross domestic product (GDP) over the next few years – 2.3% in 2017, 2.7% in 2018 and 2.3% in 2019.

John McClelland, ARA’s vice president for government affairs and chief economist, said, “What is interesting to note is that the US equipment rental industry continues to post strong performance numbers that nearly double the growth of economy and we expect this trend to continue for the foreseeable future.

“How Congress deals with tax reform and infrastructure spending also could add to the equipment rental industry’s momentum.”

Meanwhile, Scott Hazelton, managing director, IHS Markit, said, “Job growth remains strong, GDP growth is solid, consumer confidence is high and housing continues to improve slowly, although construction spending has been flat.”

In Canada, the ARA has forecast an increase of 2.7% in 2017, meaning rental revenues would reach US$5.12 (€4.33 billion). It is then expected to grow another 3.2% in 2018, 4.7% in 2019, 5.1% in 2020 and 5.6% in 2021, meaning a total of US$6.14 billion (€5.20 billion) in five years’ time.