U.S. rental revenue up 7.3 percent over 2012

According to the American Rental Association's latest Rental Market Monitor forecast, the U.S. equipment rental industry is expected to generate $33.6 billion in revenue for 2013, an increase of 7.3 percent over 2012.

This is slightly lower than the 7.6 percent growth forecast made at the end of last year, but still represents a very healthy increase.

Drivers of growth include the construction market and consumer spending, the ARA said.

"The U.S. equipment rental market is expected to continue its upward trajectory and show significant growth through 2017," the Rental Market Monitor stated. "Strong growth in real residential construction through 2015 will fuel the construction and industrial equipment segment, which is perojected to grow 9.8 percent in 2014 and 11.8 percent in 2015."

By the end of the current five-year forecast in 2017, North American equipment rental revenue is expected to surpass $50 billion to reach $51.6 billion, with U.S. rental revenue at $46.3 billion and rental revenue in Canada at $5.3 billion.

In Canada, the equipment rental industry is expected to generate $4.6 billion for 2013; a 3.1 percent increase. Totals for all of North American equipment rental revenues in 2013 are forecasted to reach $38.2 billion.

“The industry continues to build customer demand, which drives the growth of the equipment rental industry. Listening to ARA members from around the country and looking at the forecast of IHS Global Insight, there is unlimited potential for the equipment rental industry,” said Christine Wehrman, ARA’s executive vice president and CEO.

Scott Hazelton, a senior partner with IHS Global insight, which compiles the Rental Market Monitor, said; "Rental has grown during the anemic economic recovery through increased penetration. As industrial and construction markets continue to improve, rental will see further growth from a larger share of the equipment market, leading to double-digit revenue gains by 2014.”