ARA predicts steady growth for equipment rental industry
The ARA expects annual growth of 6.7 percent in 2016 and 2017, 6.2 percent in 2018, and 5.8 percent in 2019, at which point the industry will be worth approximately $48.7 billion. The forecast took into account the turbulence of oil, gas, construction and other connected industries. An ongoing rebound in construction and increased consumer capital spent on parties and events were seen as potential contributors to industry growth.
“The performance of the equipment rental industry since the recession has been very positive and as auxiliary industries recover and grow, we anticipate equipment rental revenue growth to meet the forecast of the next five years,” ARA Chief Executive Officer and Executive Vice President Christine Wehrman said.
Wehrman said this translates to expanding markets and a growing demand for rental agencies to grow their inventories. ARA has also found customer loyalty to be strong in the equipment rental industry, as contractors often realize and appreciate the savings of renting vs. owning.
The data was released through the ARA Rental Market Monitor, a paid subscription service of ARA that provides quarterly updates and other rental market information.