June 2019 Vol.74 No. 6
Newsline
ARA Forecasts Continued, Steady Growth
The new five-year forecast from the American Rental Association (ARA) calls for equipment and event rental revenues in North America to surpass $61.3 billion in 2019, including $55.8 billion in the United States and $5.3 billion in Canada—up 5.0 percent compared to 2018.
Similar steady growth is expected in each of the successive years of the forecast, to reach $69.8 billion in revenue by 2022.
“The equipment and event rental industry is growing and continues to expand faster than the overall economy. The outlook continues to be positive,” said John McClelland, Ph.D., ARA vice president for government affairs and chief economist.
In the U.S., equipment and event rental revenue is expected to grow another 4.2 percent in 2020, 4.3 percent in 2021 and 4.7 percent in 2022, reaching $63.5 billion.
“There also is potential upside from an infrastructure bill,” said Scott Hazelton, managing director, IHS Markit, the forecasting firm that compiles data and analysis for the ARA Rentalytics subscription service. “The exact gain to rental would depend upon the size, time span and composition … of the bill, but something on the scale proposed by the President and Congressional leaders has the potential to boost equipment rental revenue by up to 10 percent from its baseline.”
In Canada, rental revenue is forecast to grow 2.5 percent in 2019 to total nearly C$5.6 billion and then continues to expand with revenue increases of 4.4 percent in 2020, 5.6 percent in 2021 and 3.7 percent in 2022 to total more than C$6.3 billion.
The American Rental Association, Moline, Ill., is an international trade association for owners of equipment and event rental businesses, and the manufacturers and suppliers of construction/industrial, general tool and party/event rental equipment.
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